Zoom profits jump in Q1 after strong customer growth from home working

News General Global 3 JUN 2020
Zoom profits jump in Q1 after strong customer growth from home working

Zoom Video Communications saw its revenue nearly triple in its fiscal first quarter to April, to USD 328 million from USD 122 million a year earlier, as more people adopted the videoconferencing platform while at home during the Covid-19 pandemic. The company's operating profit jumped to USD 23.4 million from USD 1.6 million a year ago, and adjusted net profit earnings rose to 20 cents a share from USD 0.03, double the company's forecast. 

Zoom said the better-than-expected results were driven by customer growth. It had around 265,400 business customers with more than 10 employees at the end of the quarter, up 354 percent from April 2019. The number of customers generating more than USD 100,000 in revenue in the past 12 months nearly doubled year-on-year to 769. 

Free cash flow improved to USD 252 million from USD 15 million a year ago, and Zoom ended the quarter with USD 1.1 billion in cash and equivalents. 

For fiscal Q2, Zoom forecast revenues of USD 495-500 million, adjusted operating profit of USD 130-135 million and adjusted EPS of USD 0.44-0.46. 

The company raised its outlook for annual revenue to USD 1.775-1.800 billion, based on the increased demand for remote work solutions for businesses. It also assumes increased churn in the second half of the fiscal year due to a higher percentage of customers who purchased monthly subscriptions in the first quarter. Adjusted operating profit is estimated at USD 355-380 million and adjusted EPS at USD 1.21-1.29 in the full year. 

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General

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Zoom Video Communications

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Global

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Financial figures, IT - applications, Videoconferencing

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