February 27, 2023 – Zoom Video Communications, Inc. (NASDAQ:ZM), a leading provider of video-first unified communications, today announced financial results for the fourth quarter and fiscal year ended January 31, 2023.
Zoom Video Communications (ZM) reported fiscal Q4 adjusted earnings late Monday of $1.22, down from $1.29 a year earlier.
Analysts polled by Capital IQ forecast $0.82.
Revenue for the quarter ended Jan. 31 was $1.12 billion, up from $1.07 billion a year earlier. Analysts surveyed by Capital IQ projected $1.10 billion.
The video-conferencing company said it expects fiscal Q1 adjusted EPS of $0.96 to $0.98 on revenue of $1.08 billion to $1.09 billion. Analysts polled by Capital IQ are looking for adjusted EPS of $0.86 and revenue of $1.11 billion.
For fiscal 2024, the company expects adjusted EPS of $4.11 to $4.18 on revenue of $4.44 billion to $4.46 billion. Analysts surveyed by Capital IQ are expecting adjusted EPS and revenue of $3.67 and $4.63 billion, respectively.
Customer Metrics: Drivers of total revenue included acquiring new customers and expanding across existing customers. At the end of the fourth quarter of fiscal year 2023, Zoom had:
Approximately 213,000 Enterprise customers, up 12% year over year.
A trailing 12-month net dollar expansion rate for Enterprise customers of 115%.
3,471 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 27% from the same quarter last fiscal year.
Online average monthly churn of 3.4% for Q4, down 40 bps from the same quarter last fiscal year.
The percentage of total Online MRR from Online customers with a continual term of service of at least 16 months was 72.0%, up 1,300 bps year over year.
Financial Outlook: Zoom is providing the following guidance for its first quarter of fiscal year 2024 and its full fiscal year 2024.
First Quarter Fiscal Year 2024: Total revenue is expected to be between $1.080 billion and $1.085 billion and revenue in constant currency is expected to be between $1.097 billion and $1.102 billion. Non-GAAP income from operations is expected to be between $374.0 million and $379.0 million. First quarter non-GAAP diluted EPS is expected to be between $0.96 and $0.98 with approximately 304 million non-GAAP weighted average shares outstanding.
Full Fiscal Year 2024: Total revenue is expected to be between $4.435 billion and $4.455 billion and revenue in constant currency is expected to be between $4.458 billion and $4.478 billion, Non-GAAP income from operations is expected to be between $1.606 billion and $1.626 billion. Full fiscal year non-GAAP diluted EPS is expected to be between $4.11 and $4.18 with approximately 309 million non-GAAP weighted average shares outstanding.
Zoom Video Communications, Inc. Consolidated Statements of Operations
About Zoom
Zoom is for you. Zoom is a space where you can connect to others, share ideas, make plans, and build toward a future limited only by your imagination. Our frictionless communications platform is the only one that started with video as its foundation, and we have set the standard for innovation ever since. That is why we are an intuitive, scalable, and secure choice for large enterprises, small businesses, and individuals alike. Founded in 2011, Zoom is publicly traded (NASDAQ:ZM) and headquartered in San Jose, California. Visit zoom.com and follow @zoom.