Lockdown breakout video conferencing provider continues hot streak through second quarter of 2020, racking up record revenues of over half a billion dollars.
Even though firms are considering how to transition from their immediate business continuity needs to facilitating a drift back to work, the future of work will certainly include video conferencing to support a future of remote working, learning anywhere and connecting anywhere – and this new future has the Zoom system at its heart, as revealed by the company’s second quarter results.
For the quarter ended 31 July 2020, Zoom reported total revenue of $663.5m, up 355% year-on-year, and also showing just how the world has changed to the benefit of companies such as Zoom. The company’s GAAP income from operations for the quarter was $188.1m, compared with $2.3m in the second quarter of fiscal year 2020.
After adjusting for stock-based compensation expense and related payroll taxes, expenses related to charitable donation of common stock, and acquisition-related expenses, non-GAAP income from operations for the second quarter, was $277m, up from $20.7m in the second quarter of the previous fiscal year.
Again showing the rush for distributed systems driven by the Covid-19 outbreak, Zoom’s net cash provided by operating activities was $401.3m for the quarter, compared with $31.2m in the second quarter of fiscal year 2020. Free cash flow was $373.4m, compared with $17.1m in the second quarter a year ago.
Driving the mass income generation was the continued mass influx of customers, with the number contributing more than $100,000 in training twelve months (TTM) revenue up 112% year-on-year. Zoom had approximately 370,200 customers with more than 10 employees, an annual increase of 458%.
“At Zoom, we strive to deliver a world-class, frictionless and secure communication experience for our customers across locations, devices and use cases,” said Zoom founder and CEO Eric Yuan. “Our ability to keep people around the world connected, coupled with our strong execution, led to revenue growth.”
The company expects its good times to roll on to not just the third quarter but also the rest of the fiscal year. Zoom’s revenue outlook is approximately $2.37bn to $2.39bn for the 2021 financial year, a 281-284% increase year-on-year.
Guidance for the third quarter of the year is for total revenue to be between $685m and $690m, and non-GAAP income from operations is expected to be between $225m and $230m. Non-GAAP diluted EPS is expected to be between $0.73 and $0.74, with approximately 300 million non-GAAP weighted average shares outstanding.
The revenue outlook takes into consideration what Zoom sees as the continued demand from businesses for its remote work solutions. It also assumes and increased churn in the second half of the fiscal year when compared to historic churn levels, due to a higher percentage of customers who purchased monthly subscriptions in the first quarter. Non-GAAP income from operations is expected to be between $730m and $750m.
This article originally appeared on ComputerWeekly.