Zoom reported its quarterly performance ending on January 31st with a total revenue increase of 2.6% from the same period last year, reaching $1,146.5 million. The revenue from enterprise customers saw a 4.9% growth to $667.3 million, while revenue from online channel customers decreased by 0.5% to $479.2 million. The net profit according to GAAP was $298.8 million.
The focus on enterprise customers, a key metric for Zoom, increased by 3.5% to approximately 220,400 customers, with 3,810 customers generating over $1 million in revenue in the past 12 months. The online channel customer churn rate stood at 3.0%, down from the previous year’s 3.4%.
During the earnings call, Zoom CEO Eric Yuan mentioned that downloads for Zoom Team Chat had increased by over 4 times in the past 6 months. However, he acknowledged that Zoom needs to improve the marketing of their chat app. CFO Kelly Steckelberg addressed concerns about the revenue growth not meeting expectations, stating that Zoom had restructured its sales organization in the past quarter, which will take some time to show results.
Source: Zoom and CNBC
TLDR: Zoom’s quarterly report showed a modest revenue increase, with a focus on enterprise customers and efforts to improve marketing for their chat app, while addressing slower than expected revenue growth.
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