Zoom reported a solid set of Q4 and year-round results this week, as the cloud-based unified communications provider continues to leverage digital work trends that emerged during the COVID pandemic -19. However, as the Vaccine Economy begins to take over the economies, the company has released guidance pointing to slowed growth for next year.
While full -year revenues in 2022 reached $ 4.09 billion, up 55% year -over -year, for the full year 2023, Zoom expects revenues to be in the range of $ 4.53 billion to $ 4.55 billion – up 11% year -over -year. -years. This is the weak guidance that is likely to lower the trading shares over time.
However, as diginomica noted previously, Wall Street’s response to slowed growth has been much shorter and does not reflect the structural changes taking place in organizations around the world – where there is still plenty of opportunity for cloud vendors to continue customer acquisition.
But back to the numbers. For Q4 2022, Zoom reported:
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The number of year-end customers contributing more than $ 100,000 in the following 12 months of revenue increased by approximately 66% annually.
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Total revenue in the fourth quarter was $ 1.07 billion, up 21% year-over-year.
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Total revenue for the full fiscal year was $ 4.09 billion, up 55% year-over-year
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GAAP revenue in the fourth quarter from operations was $ 251.8 million, down 2% year-over-year.
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GAAP full fiscal year revenue from operations of $ 1,063.6 million, up 61% year-over-year
Zoom added that enterprise customers grew 35% year-over-year to approximately 191,000 and revenue from these customers grew 38% year-over-year, representing 50% of total revenue, up from 44% in Q4 last year.
CFO Kelly Steckelberg said:
We expect revenue from enterprise customers to become a higher percentage of total revenue over time.
In addition to the results, Zoom also announced that it has appointed ServiceNow CEO Bill McDermott as an independent director on the company’s Board of Directors, effective March 1, 2022. McDermott replaces Bart Swanson, an early investor in Zoom , who stepped down from the Board after more than eight years.
In many ways, Zoom and ServiceNow have complementary offerings in the marketplace, where both companies offer technology to organizations that support cross-organizational collaboration and the transition to distributed work. McDermott also has extensive experience in business sales and scaling companies.
Commenting on his appointment, McDermott said:
Zoom is a widely recognized, highly admired brand with incredible growth opportunities.
I’m excited to partner Eric Yuan [Zoom CEO], an inspiring founder with a bold vision to improve people’s lives on the Zoom platform. I am also excited to join the Board at this milestone moment for video, voice, chat and content sharing. I believe this company has tremendous potential to drive the expansion of the Zoom platform.
Three Zoom columns
Commenting on this week’s results, Zoom CEO Eric Yuan spoke about what he referred to as the ‘three core pillars’ of the company’s strategy to drive future growth.
The first column focuses on providing a fully unified communication platform, including video conferencing, events, chat, and telephone. But until last week, as Yuan said, Zoom lacked the contact center it offered. This has now changed, as Yuan said:
We announced the general availability of the Zoom Contact Center [last week], an omnichannel customer engagement solution optimized for video and integrated right into the Zoom client. It combines unified communications with modern contact center capabilities, helps customers connect via video, and also supports channels such as voice, SMS, and webchat.
Zoom Contact Center is simple for admins to configure and deploy. They can easily create menus, greetings, and prompts right on the Zoom Admin portal. The product can also integrate chat and video into an existing digital presence, such as a website, helping organizations communicate with customers in the right place and at the right time. This is just the beginning of our plan to modernize the contact center and enrich the experience for our customer and our customer’s customer base.
The second column focuses on hybrid work. Yuan added:
We believe hybrid work will be more flexible and less about location. Wherever you are – office, travel, or home – Zoom wants to make sure you have a consistent experience. Whether in Zoom Rooms or on a Zoom-connected device, we want to make sure you’re part of the conversation and can collaborate, anywhere and everywhere.
And finally, the third column focuses on Zoom’s play platform, where it continues with its API marketplace, Zoom Apps and its SDK. said Yuan
Many technology companies tell me they want to integrate Zoom into their platform to improve the communication and collaboration experience for their customers. For example, we recently announced the integration of Zoom-DocuSign.
This will allow customers to review a document during the Zoom Meeting and approve it as part of a simple bi-directional business workflow. We are already in the early stages of this change of work and communication. We believe there is a tremendous opportunity, and we plan to address it with the same level of innovation, scalability, and simplicity that has made Zoom the trusted platform for hundreds of thousands of businesses around the world.
What I take
Everything points to solid success for Zoom in the medium term. It has had strong growth in acquiring enterprise customers, which significantly generates a higher proportion of its total revenue, and it continues to build its product/platform portfolio. Wall Street may not be happy about slowed growth in 2023, but show me a cloud vendor that isn’t following a similar trend as we enter the Vaccine Economy? That’s particularly true for vendors in the digital collaboration space. Zoom is in a good position and there is still a lot of room for it to grow in the market. Bill McDermott’s guidance on the board will also not be with its prospects …
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