AI and enterprise accounts power Zoom to strong Q3 growth

The video comms vendor has upgraded its guidance as it targets an AI and ecosystem play

Zoom has reported 5 per cent year-on-year revenue increase in its Q3 results to $1.1bn (£880m), driven by a 20 per cent spike in enterprise revenue to $614.3m. Online revenue, meanwhile, reached $487.6m.

The video communications vendor delivered the growth off the back of an increase in its big-ticket clients.

The number of customers contributing more than $100,000 in the preceding 12 months saw a jump of 31per cent year-on-year.

With approximately 209,300 enterprise customers, a 14 per cent year on year increase, and a trailing 12-month net dollar expansion rate of 117 per cent, Zoom continues to fortify its market position.

The company reported 3,286 customers contributing more than $100,000 in trailing 12-month revenue, marking a 31 per cent year-on-year rise.

As a result of its financial performance in excess of analyst expectations the California-based vendor has raised its financial outlook for Q4.

The vendor now anticipates total revenue between $1.0995bn and $1.105bn, with full fiscal year 2023 revenue projected to range from $4.4bn to $4.3bn.

During the vendor's recent Zoomtopia event, CEO Eric Yuan revealed a number of new ecosystem features by the vendor, including Zoom Mail and Zoom Calendar.

Yuan emphasised Zoom's investment in AI capabilities as a key driver behind the growth.

"In Q3, revenue came in ahead of guidance as we bolstered Zoom's all-in-one intelligent collaboration platform with advanced new capabilities like Zoom AI Companion and continued to evolve our customer and employee engagement solutions. We are also pleased with our Online business where we drove higher retention and saw usage of our new AI capabilities, enhancing the value of our platform," he commented ahead of the vendor's Q4 analyst call.