Zoom reports revenue growth and strong profitability in Q4 and full-year results

Total revenue was up 2.6 per cent in Q4 and 3.1 for the full fiscal year

Zoom has reported total revenue growth of 2.6 per cent year-over-year to $1.15bn (£910m) in its Q4 2023 results.

For the full fiscal year, total revenue was $4.53bn (£3.58bn), up 3.1 per cent from last year.

Zoom also reported strong profitability and cash flow for the year. Q4 GAAP net income was $299m compared to a net loss of $104m last year. Full year free cash flow grew 24 per cent to $1.47bn.

The company ended the quarter with approximately 220,400 enterprise customers, up 3.5 per cent year-over-year. Zoom also now has over 3,800 customers contributing more than $100,000 in revenue over the last 12 months.

For Q1 FY25, Zoom expects total revenue of $1.125bn. Full year FY25 revenue is projected at $4.6bn.

The company forecast strong growth in non-GAAP operating income and EPS for both periods.

In the earnings report, Zoom also highlighted the launch of Zoom AI Companion, a new generative AI digital assistant aimed at enhancing productivity and team collaboration.

"We're committed to democratising AI accessibility, offering it to all our customers regardless of business size, included at no extra charge with a paid license," said CEO Eric Yuan.

The videoconferencing giant recently announced it was cutting 150 jobs as it "rescoped" some roles with a focus on areas of future growth, including AI, sales and product.