Quarterly performance
Trends
On its quarterly conference call, Zoom stated that the hybrid work model is gaining prominence and that companies are looking for solutions to meet their requirements in this space. The data from one of its surveys indicates that 80% of US respondents anticipate all interactions to have a virtual aspect even after the COVID-19 pandemic subsides.
Zoom believes the hybrid work model is here to stay. The company’s efforts to roll out new offerings to support its increasing adoption is expected to help drive growth in the coming months. Zoom ended the first quarter with 1,999 customers generating over $100,000 in trailing 12-months revenue.
Approx. 63% of revenue in the quarter came from customers with more than 10 employees. The net dollar expansion rate for this subset exceeded 130% in Q1 as existing customers acquired more Zoom products and the company expects this trend to continue in the upcoming quarters as well.
Zoom saw strong growth in both its domestic and international markets. Revenue from the Americas grew more than 159% year-over-year while APAC and EMEA revenue grew 288% YoY on a combined basis. The company sees a vast global opportunity and is positioning itself to take advantage of the same.
Outlook
Based on its strong performance in the first quarter, Zoom increased its outlook for the full year of 2022. The company now expects revenue to range between $3.97-3.99 billion, reflecting a YoY growth of approx. 50%. Adjusted EPS is estimated to range between $4.56-4.61. For the second quarter of 2022, Zoom expects revenue of $985-990 million and adjusted EPS of $1.14-1.15.
Click here to read the full transcript of Zoom’s Q1 2022 earnings conference call