Zoom’s second quarter financial results surpassed all market estimates, the company said it had quarterly revenue in excess of $1 billion for the first time in the company’s history. Video conferencing reached this revenue milestone just five quarters after reaching an annual run rate of $1 billion.
However, shares fell in trading after the stock market closed. Zoom’s non-GAAP net income for the quarter was $415.1 million, or $1.36 per share. Total revenue for the second quarter reached $1.021 billion, an increase of 54%. Analysts had expected a profit of $1.16 per share on revenue of $990.96 million.
“In the second quarter, we achieved our first quarter of $1 billion in revenue, while delivering strong profitability and cash flow,” said Zoom Founder and CEO Eric S. Yuan in a statement. “The second quarter also marked several milestones in our expansion beyond the UC platform. We launched Zoom Apps, bringing more than 50 apps directly to the Zoom experience, and Zoom Events, a complete digital event service.”
“It’s important to note that as we’ve just surpassed our first annual comparison since the beginning of the pandemic, we’ve seen customers return to more thoughtful and measured buying patterns,” said CFO Kelly Steckelberg
“Although revenue, profitability and flow were strong in the second quarter and first half, other metrics started to return to normal.”
At the end of the second quarter, the company had 2,278 customers contributing more than $100,000 in revenue over the past 12 months, an increase of approximately 131% over the same quarter last year. Zoom had approximately 504,900 customers, an increase of approximately 36% over the previous year.
Zoom has been able to increase the number of corporate clients spending more than $1 million on ARR by 77% year-over-year. Zoom also reported accelerated growth for Zoom Phone and Zoom Rooms.
The number of customers spending over $100,000 on ARR on Zoom Phone grew in the second quarter by 241%. In August, Zoom reached 2 million Zoom Phone users, just eight months after reaching the first million.
For the entire fiscal year 2022, revenue is expected to be between $4.005 billion and $4.015 billion.