{"id":18994,"date":"2020-06-03T05:30:30","date_gmt":"2020-06-03T05:30:30","guid":{"rendered":"https:\/\/rbsitsoftwaresolution.com\/blog\/remote-work-helps-zoom-grow-169-in-one-year-posting-328-2m-in-q1-revenue.html"},"modified":"2020-06-03T05:30:30","modified_gmt":"2020-06-03T05:30:30","slug":"remote-work-helps-zoom-grow-169-in-one-year-posting-328-2m-in-q1-revenue","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/remote-work-helps-zoom-grow-169-in-one-year-posting-328-2m-in-q1-revenue.html","title":{"rendered":"Remote work helps Zoom grow 169% in one year, posting $328.2M in Q1 revenue"},"content":{"rendered":"

Today after the bell, video-chat service Zoom<\/a> reported<\/a> its Q1 earnings. The company disclosed that it generated $328.2 million in revenue, up 169% compared to the year-ago period. The company also reported $0.20 per-share in adjusted profit during the three-month period.<\/p>\n

Analysts, as averaged by Yahoo Finance, expected Zoom <\/a> to report $202.48 million in revenue, and a per-share profit of $0.09. After its earnings smash, shares of Zoom were up slightly Update: Zoom shares are now up 2.3% ahead of its earnings call<\/em>; investors had priced in this outsized-performance, it seems.<\/p>\n

Zoom grew 78% in its preceding quarter on an annualized basis. The company\u2019s growth acceleration is notable.<\/p>\n

Investors were expecting big gains. Before its earnings, shares in the popular business-to-business service were up by more than 3x during the year; Zoom has found itself in an updraft due in part to COVID-19 driving workers and others to stay home and work remotely. Zoom\u2019s software has also seen large purchase amongst consumers hungry for a video chatting solution that was simple and that works.<\/p>\n

If the company could sustain its valuation gains going into this earnings report<\/a> was an open question that has now been answered.<\/p>\n

Gains<\/h2>\n

Zoom\u2019s growth in its Q1 fiscal 2021 generated some notable profit results for the firm. The firm\u2019s net income, an unadjusted profit metric, rose from $0.2 million in the year-ago quarter to $27.0 million in its most recent three months.<\/p>\n

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Looking back at Zoom\u2019s ascent a year after it filed to go public<\/a><\/p>\n<\/blockquote>\n

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And Zoom\u2019s cash generation was astounding. Here\u2019s how the company described its results:<\/p>\n

\n

Net cash provided by operating activities was\u00a0$259.0\u00a0million for the quarter, compared to\u00a0$22.2\u00a0million in the first quarter of fiscal year 2020. Free cash flow was\u00a0$251.7\u00a0million, compared to\u00a0$15.3\u00a0million in the first quarter of fiscal year 2020.<\/p>\n<\/blockquote>\n

It\u2019s difficult to recall another company that has managed such growth in cash generation in such a short period of time, driven mostly by operations and not other financial acts. Zoom\u2019s customer numbers were similarly sharp, with the firm reporting that it had 265,400 customers with more than 10 seats (employees) at the end of the quarter, which was up 354% from the year-ago period.<\/p>\n

Though not all news for Zoom was good. Indeed, the company\u2019s gross margin fell sharply in the quarter, compared to its year-ago result. In is Q1 fiscal 2020, Zoom reported a gross margin of around 80%. In its most recent quarter that number slipped to around 68%. In short, the company managed to convert many free users to paying customers, but still had to carry the costs of free usage of its product, something that has exploded in recent months.<\/p>\n

Looking ahead, Zoom expects the current quarter to be another blockbuster period. The company noted in its release that it expects \u201cbetween $495.0 million and $500.0 million\u201d in revenue for Q2 of its fiscal 2021 (the current period). Looking ahead for the full fiscal year, Zoom anticipates revenues \u201cbetween $1.775 billion and $1.800 billion,\u201d numbers that take into account \u201cthe demand for remote work solutions for businesses\u201d and \u201cincreased churn in the second half of the fiscal year\u201d when some customers might no longer need Zoom if they can return to their offices.<\/p>\n

Its shares might have priced in these results, but the numbers themselves are simply massive. Just three months ago Zoom turned in revenues of just $188.3 million. That\u2019s less than it generated in free cash flow during its next three months.<\/p>\n

Article source: http:\/\/feedproxy.google.com\/~r\/techcrunchIt\/~3\/v0mNbQXPNqo\/<\/p>","protected":false},"excerpt":{"rendered":"

Today after the bell, video-chat service Zoom reported its Q1 earnings. The company disclosed that it generated $328.2 million in revenue, up 169% compared to the year-ago period. The company <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[19],"tags":[25],"class_list":["post-18994","post","type-post","status-publish","format-standard","hentry","category-enterprise-software","tag-enterprise"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t