Zoom Revenue Grows 169% in Q1 and Company Doubles Revenue Guidance for the Year

Shares of Zoom were heading higher after the company reported its first quarter financial results this week and upped its guidance.

The company’s revenue growth picked up significantly during the quarter as COVID-19 drove more people to use the company’s video conferencing in recent months.

For the first quarter, the company reported revenue growth of 169% from the previous year. Earnings per share was reported at 20 cents, adjusted, and revenue was reported at $328.2 million.

Analysts surveyed by Refinitiv had expected 9 cents in adjusted earnings per share and $202.7 million in revenue for the quarter, which ended Apr. 30th.

Zoom also nearly doubled its revenue guidance for the full year. The company now expects $1.21 to $1.29 in adjusted earnings per share on $1.78 billion to $1.80 billion in revenue. Back in March Zoom had forecast 42 cents to 45 cents in EPS on $905 million to $915 million in revenue.

According to Needham analyst Richard Valera, the results were “incredible.” He said on CNBC, “Never have I seen something of that magnitude in my 20 years of covering technology.”

Zoom said it had 769 customers paying over $100,000 in the trailing 12 months at the end of the fiscal first quarter, up 90% on an annualized basis, compared with 86% in the prior quarter. The company had 265,400 customers with more than 10 employees at the end of the quarter, up 354%. The growth rate in the prior quarter was 61%.

Eric Yuan, Zoom’s CEO, said on the earnings call, “Nearly 10 years ago, we created Zoom to build a better, simpler and more efficient video communications platform. Today, I am proud to see that our platform is serving a critical role beyond our original vision in enabling communication and collaboration for businesses, schools, consumers and the global community to stay connected and operational during the COVID-19 pandemic. Navigating this process has been a humbling learning experience, giving us a newfound appreciation for what it means to be a video communications technology provider in times of need. And work-from-home and social distance initiatives have meaningfully accelerated the adoption and traffic on the Zoom Video Communications platform. We have seen many use cases, not only from enterprises to maintain work productivity as part of business continuity plans, but also from first-time consumer users for personal and social use to connect with friends and families when physical gathering is not possible.”

Disclaimer: We have no position in Zoom Video Communications Inc. (NASDAQ: ZM) and have not been compensated for this article.