Zoom Q4: revenue of $882M, up 369% YoY, vs. $812M est., 467K+ customers with 10+ employees, projected Q1 revenue of $900M-$905M, vs. $829M est.; stock jumps 11% — – Zoom beat on the top and bottom lines, showing sequential revenue growth. — The company sees 42% revenue growth …
In the wake of the Covid-19 pandemic, the video conferencing industry has seen a surge in demand. Among the leading companies in this space is Zoom Video Communications, Inc. Zoom’s flagship product, Zoom Meetings, has become the go-to solution for remote work, virtual events, and online education. As a result, Zoom’s revenue has grown significantly in the past year.
Zoom Q4 2021 revenue was $882.5 million, up 369% from the same period in the previous year. This result was well above the company’s guidance range of $806 million to $811 million. The revenue growth was driven by an increase in paying customers and higher revenue per customer.
Zoom’s customer base has grown significantly in the past year. At the end of Q4 2021, Zoom had approximately 467,100 customers with more than ten employees, up 470% from the same period in the previous year. Of these customers, 1,644 accounted for more than $100,000 in trailing 12-month revenue, up 156% from the same period in the previous year. This shows that Zoom’s customer base is not only growing, but also becoming more lucrative.
The revenue per customer has also increased in the past year. In Q4 2021, the average revenue per customer was $1,889, up 13% from the same period in the previous year. This growth was driven by an increase in upselling and cross-selling of Zoom’s additional products, such as Zoom Phone and Zoom Rooms.
Zoom’s gross margin for Q4 2021 was 68.4%, up from 66.7% in the same period in the previous year. This increase was due to a higher percentage of revenue coming from Zoom’s core video conferencing product, which has a higher gross margin than the company’s additional products.
Zoom’s operating expenses for Q4 2021 were $376.5 million, up from $209.5 million in the same period in the previous year. This increase was due to higher spending on sales and marketing, research and development, and general and administrative expenses. Despite the increase in operating expenses, Zoom’s operating income for Q4 2021 was $256 million, up from $24.4 million in the same period in the previous year.
In summary, Zoom’s Q4 2021 revenue was impressive, driven by an increase in paying customers and higher revenue per customer. The company’s gross margin and operating income also improved, indicating strong financial health. Zoom’s success in the past year has been due to the pandemic-induced shift to remote work, but the company is well-positioned to continue growing even as the pandemic subsides.
