Zoom has reported an explosive Q4 which saw sales rocket 369 per cent.
Revenue hit $882.5m in the quarter ending 31 January, rounding off a stunning year that saw total revenue grow 326 per cent to $2.65bn.
The accelerated growth in Q4 has given investors confidence that Zoom can continue to grow post-pandemic, leading to the firm’s valuation rising 10 per cent after the results were published.
Zoom highlighted growth in the enterprise space as being key to the results, saying that the number of Global 2000 customers generating at least $100,000 in annualised recurring revenue doubled during the year.
However, Zoom’s penetration of Global 2000 businesses stands at just 14 per cent, which CEO, Eric Yuan, said is a huge opportunity for growth.
“If you look at our history the way for us to grow our revenue is from the bottom up,” he said. “From one-user, two-user; one department to multiple-department, and then we talk to the CIO, right? And we are doing something similar.
“If you talk with the enterprise customers when you do not have a very strong brand, normally they even do not want to talk with you. Because of last year, I think Zoom has become a household brand, I think we have more and more opportunities in the pipeline"
“I think the rest of the Global 2K customers are basically looking at the international growth opportunity. I think the future is bright as long as we keep improving on execution.”
Phone Growth
Zoom Phone is seen as one of the key products that can continue Zoom’s growth post-pandemic and featured heavily during the earnings call with investors. Yuan said a flagship customer coup came in the form of Universal Music Group which is adopting Phone for its global workforce.
At the close of the year, Zoom had around 10,700 Phone customers with more than 10 employees – up 267 per cent year on year, and 18 customers with more than 10,000 seats.
The growth was split at 60 per cent in the SMB market and 40 per cent in the enterprise space.
Yuan also said that the channel has played a crucial role in Phone’s adoption, particularly distributors and master agents.
Potential Acquisitions
Recent reports have suggested that Zoom has been contemplating an expansion into the contact centre space – either via acquisition or the building of its own solution.
Yuan did discuss Zoom’s contact centre plans in the context of Zoom Phone, saying that the strategy remains to partner with other providers.
Eric Yuan[/caption]
