I recently published a blog about the upcoming Q3 financial results report from leading video conferencing company, Zoom. Despite a few wobbles with unmanageable increases in demand and security issues, Zoom has had a phenomenal year for growth. The catalyst of COVID-19 has turned Zoom into a household name, and one of the go-to solutions for video conferencing.
At the same time, Zoom is constantly increasing its value proposition, offering new solutions to companies that set it apart as an innovator in UCaaS and collaboration.
According to Eric Yuan, Zoom CEO and founder, the company remains focused on supporting the communication needs of customers in today’s confusing environment. Zoom wants to provide the most secure and innovative communications platform around, and strong demand for this has driven a massive growth for the company.
The Results are In (and Looking Good)
The Q3 financial results for FY21 are fantastic, with total revenues of $777.2 million – an increase of 367% year-over-year.
Some of the most impressive insights from the latest report are:
- Zoom now has 433,700 customers with more than 10 employees (an increase of 485% on Q3 FY20)
- The company has 1,289 customers contributing more than $100,000 over 12-month revenue (an increase of 136% on Q3 FY20)
- Zoom has 3,800+ employees worldwide
- Trailing 12-month net dollar expansion rate in customers with over 10 employees increased over 130% for the tenth quarter in a row
Eric Yuan announced that the company expects to continue strengthening its market position with a revenue outlook of around $2,575 to $2,580 billion in 2021. If 2020’s results are anything to go by, it seems likely that Zoom will reach its financial goals going forward. Even with the problems of Zoombombing and similar concerns to deal with, Zoom has proven itself a serious contender in the video and UCaaS marketplaces.
Zoom Goes from Strength to Strength
Although 2020 has been a complicated year for many people, it’s also become the fuel for digital transformation in countless business environments. For many organisations, the path to the future starts with embracing tools like Zoom for remote work and collaboration.
Zoom’s massive growth of 367% year over year highlights its leadership position as an easy-to-use solution for video conferencing and collaboration. Over the last 12 months, not only has Zoom seen a massive increase in revenue, but its customer base is flourishing too. The Zoom brand isn’t just attracting small businesses anymore. A huge portion of its customers are now larger brands, with a lot of spending potential.
As we look forward to 2021, Zoom expects continued growth from the year ahead. The total revenue for the business in the fourth quarter is expected to balance somewhere between $806 million and $811 million. Non-GAAP income from operations should be between $243 and $248 million too.
For the full fiscal year, Zoom is predicting an impressive overall revenue of around $2,575 billion, to $2,580 billion, with non-GAAP operations income between $865 and $870 million.
