"We were humbled by the accelerated adoption of the Zoom platform around the globe," said Zoom Founder and CEO Eric S Yuan.
Zoom, the video conferencing service, that has become a common word during the coronavirus pandemic, saw its revenue soar by 169% to US$328 million in the three months to the end of April.
Zoom was used by businesses around the world as lockdowns kept workers at home. It showed owners that video conferencing to keep in contact with faraway employees has vastly improved, perhaps changing the face of work forever.
“We were humbled by the accelerated adoption of the Zoom platform around the globe in Q1. The COVID-19 crisis has driven higher demand for distributed, face-to-face interactions and collaboration using Zoom. Use cases have grown rapidly as people integrated Zoom into their work, learning, and personal lives,” said Eric S Yuan, Founder and CEO of Zoom in a statement. “I am proud of our Zoom employees who dedicated themselves to support customers and the global community during this crisis. With their tremendous efforts, we were able to provide high-quality video services to new and existing customers.
“We also supported an unprecedented number of free participants, including over 100,000 K-12 schools around the globe that chose Zoom to deliver the best online education experience. This quarter, we were also proud to launch Zoom Cares, our corporate philanthropic entity, with initial grants to San Jose Digital Inclusion Fund, Destination Home, the CDC Foundation, the World Health Organization and the CDE Foundation. While the key long-term focuses of this foundation are education, climate change, and social equity, our primary grants in Q1 were toward organizations making a difference during COVID-19.”
The massive increase in demand for the company’s video conferencing app made its performance over the past three months “one of, if not the greatest quarter in enterprise software history”, Alex Zukin, a software analyst at RBC Capital Markets, told the Financial Review.
The increase in revenue also was shown in Zoom’s underlying profitability, with free cash flow topping US$250m in the past three months, which is more than double the amount the video communications business generated in the previous 12 months combined.
At the end of the first quarter of fiscal year 2021, the San Francisco-based company had:
- Approximately 265,400 customers with more than 10 employees, up approximately 354% from the same quarter last fiscal year
- 769 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 90% from the same quarter last fiscal year
- A trailing 12-month net dollar expansion rate in customers with more than 10 employees above 130% for the 8th consecutive quarter