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The company posted quarterly revenues that topped $1bn for the first time, but its share price still dropped following the announcement.
Zoom posted quarterly earnings that beat analyst expectations but continued a trend of slowing growth.
The company recorded revenue of $1.02bn for the quarter ending 31 July, growth of 54pc year-on-year, versus analyst predictions of $991m. Its diluted earnings-per-share were $1.36, up 48pc, versus expectations of $1.16.
The video conferencing service also saw expansion of its userbase as measured by various metrics. It now has more than 504,900 enterprise customers with more than 10 employees, an increase of 36pc. It also has 2,278 individual clients generating over $100,000 in annual revenue each, an increase of 131pc.
In its earnings release, Zoom noted in particular the addition of Seagate and NEC, among others, to its client base, as well as the sale of its more expensive Zoom Phone service to names like ExxonMobil.
Though better than Wall Street’s expectations, the financial results continued a broader trend of slowing growth for the company, which saw explosive expansion in 2020 as the pandemic made its service a household name.
Last quarter, which ended on 31 April, Zoom posted 191pc year-on-year revenue growth, itself a slowdown from 369pc the quarter before. With the continuation of that trend in the latest results, the company’s shares were down more than 10pc at time of writing in after-hours trading.
Zoom CFO Kelly Steckelberg noted this, saying “the ever-changing nature of the global pandemic continues to impact our segments.
“Our outlook assumes that our direct and channel business will continue to experience robust growth, while our online business will be a headwind in the coming quarters as smaller customers and consumers adjust to the evolving environment and regions in different ways.”
The quarter ending 31 July was a busy one for the company as it saw Zoom agree a $14.7bn acquisition of Five9, a cloud-based contact centre company, as well as the launch of Zoom Events and Zoom Apps.
Zoom founder and CEO Eric Yuan commented on the earnings release: “In Q2, we achieved our first billion-dollar revenue quarter while delivering strong profitability and cash flow.
“Today we are a global brand counting over half a million customers with more than 10 employees, which we believe positions us extremely well to support organisations and individuals as they look to reimagine work, communications and collaboration.”
