Zoom’s stock jumped after the videoconferencing business posted fiscal Q1 profits that exceeded expectations.
Zoom reported a profit of $316 million for the first quarter of 2022, equal to $1.03 per share. Although profits are down from $402.1 million in 2021, revenue increased by 12 percent to $1.074 billion.
Earlier, analysts predicted the share price to go down to 87 dollarcents. The actual figures came as a surprise. Zoom’s impressive numbers were fueled by increased customer metrics, with the firm having 198,900 enterprise customers at the end of the quarter, up 24% year over year.
New products drove growth
Spending per customer grew over the past twelve months. 2,916 customers contributed more than $100,000, a 46% rise year-over-year. The debut of several new products, including Zoom Contact Center, Zoom Whiteboard, and Zoom IQ for Sales, were among the quarter’s highlights.
Zoom entered the cloud contact center industry with Zoom Contact Center, which became commercially accessible in February. The solution combines unified communications and contact center services with the platform’s ease of use to allow video chats and phone conversations, as well as SMS and online chat features.
What to expect going forward
In a statement, Zoom founder and CEO Eric S. Yuan said that the company’s sales were powered by continued success in Zoom Rooms and Zoom Phone, which hit 3 million seats during the quarter. He also said that the company kept a healthy profit margin and cash flow. Zoom expects revenue to grow from $1.115 billion to $1.120 billion in the coming quarter.