Zoom Q1 results: the key takeaways

The video comms vendor reported a three per cent increase in total revenue year on year to $1.1bn

Zoom has released its first fiscal quarter reporting a three per cent increase in total revenue year on year, reaching $1.1bn.

The company's founder and CEO, Eric Yuan claimed partners and end users still see the vendor as "mission-cirtical".

"The Zoom platform is designed to support limitless human connection to empower the modern workday and strengthen customer relationships.

"Our customers see Zoom as mission-critical in how they collaborate internally and externally across the globe."

He added that the vendor has raised its outlook for its FY24, and is investing more capital in AI to "help make interactions more meaningful and communications more effective."

The key takeaways

Total revenue in the first quarter for Zoom grew by three per cent, and after adjusting for foreign currency impact, revenue in constant currency was $1.1bn, up five per cent year over year.

The company's enterprise revenue was $632.0m, up 13 per cent year over year, while online revenue was $473.4m, down eight per cent year over year.

GAAP income from operations for the first quarter was $9.7m, compared to GAAP income from operations of $187.1m in the first quarter of fiscal year 2023.

After adjusting for stock-based compensation expense and related payroll taxes, acquisition-related expenses, restructuring expenses, and ligation settlements, net, non-GAAP income from operations for the first quarter was $422.3m, compared to non-GAAP income from operations of $399.6m in the first quarter of fiscal year 2023.

For the first quarter, GAAP operating margin was 0.9 per cent and non-GAAP operating margin was 38.2 per cent.

Drivers of total revenue included acquiring new customers and expanding across existing customers. At the end of the first quarter of fiscal year 2024, Zoom reports having:

• approximately 215,900 enterprise customers, up nine per cent from the same quarter last fiscal year.
• 3,580 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 23 per cent from the same quarter last fiscal year.

Financial outlook

For the second fiscal quarter of 2024, Zoom expects total revenue to be between $1.110bn and $1.115bn.

Non-GAAP income from operations is expected to be between $405m and $410m.

While for the full fiscal year 2024, total revenue is expected to be between $4.465bn and $4.485bn.

Full fiscal year non-GAAP income from operations is expected to be between $1.630bn and $1.650bn.