Zoom reported better-than-expected fourth-quarter financial results on Monday, but its weak outlook for the first quarter of 2023 sent shares tumbling 13% in extended trading on Monday as more employees return to the office. .
The communications company’s quarterly results do not match the astronomical growth it experienced at the start of the Covid-19 pandemic, even as it evolved its product portfolio and turned more to large corporate clients.
Zoom’s revenue grew 21% year over year in the period ending Jan. 31. Annual revenue meanwhile was $4.099 billion, up 55% year-over-year.
Zoom forecasts double-digit revenue growth for fiscal 2023, below analysts’ expectations. For the first quarter of 2023, Zoom forecasts total revenue of between $1.07 billion and $1.075 billion, representing growth of approximately 12%.
191,000 corporate clients
Zoom has 509,800 customers with more than 10 employees at the end of January, compared to 512,000 in October. Separately, the company reported that the number of customers contributing more than $100,000 in revenue over the past 12 months increased by approximately 66% over the previous year.
Going forward, Zoom also plans to report on its progress to enterprise customers. Zoom defines enterprise customers as distinct business units that have been engaged either by Zoom’s direct sales team or by channel partners or independent software vendor partners. At the end of the fourth quarter, Zoom had approximately 191,000 enterprise customers, an increase of 35% over the previous year.
“In fiscal 2022, we delivered strong results with total revenue of over $4 billion, up 55% from the prior year, as well as an increase in profitability and operating cash flow growth as our global customer base continued to grow and find new use cases for our expanding communications platform,” CEO Eric Yuan said in a statement.
“Looking forward, we are tackling a great opportunity, as we believe customers will continue to transform the way they work and communicate with their customers. It’s obvious that businesses want a complete communications platform that’s integrated, secure, and easy to use. We are proud to lead the charge of digital communications transformation. To maintain and strengthen our leadership position, in fiscal 2023 we plan to expand our platform to further enrich the customer experience with new cloud-based technologies and expand our betting motions. market, which we believe will enable us to drive future growth,” he added.