Zoom’s Q4 results look good

Zoom Video Communications, Inc., a provider of video-first unified communications, has announced robust financial results for the fourth quarter and fiscal year ended Jan.31, 2022.

“In fiscal year 2022, we delivered strong results with total revenue of more than $4 billion growing 55 percent year over year along with increased profitability and operating cash flow growth as our global customer base continued to grow and find new use cases for our broadening communications platform,” said Zoom founder and CEO, Eric S. Yuan, in a release.

“Looking forward, we are addressing a large opportunity as we expect customers will continue to transform how they work and engage with their customers. It is apparent that businesses want a full communications platform that is integrated, secure, and easy to use. We are proud to lead the charge of the digital transformation for communications. To sustain and enhance our leadership position, in fiscal year 2023 we plan to build out our platform to further enrich the customer experience with new cloud-based technologies and expand our go-to-market motions, which we believe will enable us to drive future growth.”

Fourth Quarter Fiscal Year 2022 Financial Highlights:

• Revenue: Total revenue for the quarter was $1,071.4 million, up 21% year over year.
• Income from Operations and Operating Margin: GAAP income from operations for the quarter was $251.8 million, compared to GAAP income from operations of $256.1 million in the fourth quarter of fiscal year 2021. After adjusting for stock-based compensation expense and related payroll taxes, and acquisition-related expenses, non-GAAP income from operations for the fourth quarter was $420.3 million, up from $360.9 million in the fourth quarter of fiscal year 2021. For the fourth quarter, GAAP operating margin was 23.5% and non-GAAP

Full Fiscal Year 2022 Financial Highlights:

• Revenue: Total revenue for the fiscal year was $4,099.9 million, up 55% year over year.
• Income from Operations and Operating Margin: GAAP income from operations for the fiscal year was $1,063.6 million, compared to GAAP income from operations of $659.8 million for fiscal year 2021. After adjusting for stock-based compensation expense and related payroll taxes, expenses related to charitable donation of common stock, litigation settlements, net, and acquisition-related expenses, non-GAAP income from operations for the fiscal year was $1,657.1 million, up from $983.3 million for fiscal year 2021. For the fiscal year, GAAP operating margin was 25.9% and non-GAAP operating margin was 40.4%.
• Net Income and Diluted Net Income Per Share: GAAP net income attributable to common stockholders for the fiscal year was $1,375.1 million, or $4.50 per share, compared to GAAP net income attributable to common stockholders of $671.5 million, or $2.25 per share for fiscal year 2021.

As Zoom approaches its three-year anniversary as a public company, Zoom’s business has evolved substantially and the metrics that management uses to evaluate the business have changed. Beginning with the first quarter of fiscal year 2023, Zoom will no longer present the number of customers with more than 10 employees and the trailing 12-month net dollar expansion rate for customers with more than 10 employees. However, Zoom will still provide these metrics through the end of fiscal year 2023 in the appendix to the investor deck that Zoom will continue to post on its IR site each quarter at https://investors.zoom.us.

Going forward, Zoom will provide the following metrics in addition to the number of customers contributing more than $100,000 in trailing 12 months revenue: the number of Enterprise customers and the net dollar expansion rate for Enterprise customers. Zoom defines Enterprise customers as distinct business units who have been engaged by either Zoom’s direct sales team, channel partners or independent software vendor partners.