Zoom Video Communications said its fourth-quarter net profit rose by about 88.4 per cent on an annual basis, underpinned by a growth in the number of paying customers.
Net profit in the three months ended on January 31 surged to $490.5 million, the Nasdaq-listed company said. It was up by about 44.2 per cent on a quarterly basis.
Revenue jumped 21.4 per cent to more than $1.07 billion, beating analysts' estimates of $1.05bn, according to Refinitiv.
The company’s net profit for the 2022 financial year more than doubled on a yearly basis to more than $1.3bn while sales rose 54.6 per cent to more than $4.09bn.
“We delivered strong results … with increased profitability and operating cash flow growth as our global customer base continued to grow and find new use cases for our broadening communications platform,” founder and chief executive Eric Yuan said.
“To sustain and enhance our leadership position in fiscal year 2023, we plan to build out our platform to further enrich the customer experience with new cloud-based technologies, and expand our go-to-market motions, which, we believe, will enable us to drive future growth,” Mr Yuan said.
To sustain and enhance our leadership position in fiscal year 2023, we plan to build out our platform to further enrich the customer experience
Eric Yuan,
Zoom's founder and chief executive
Zoom shares, which started the year at about $184.3, dropped by about 3 per to $128.6 in pre-market trading on Tuesday.
The company also issued a weaker than expected revenue outlook for the current quarter and the full financial year.
Revenue in the current quarter will be between $1.07bn and $1.075bn, a yearly jump of about 12 per cent, the company said. Analysts polled by Refinitiv had expected $1.1bn in sales.
For the full year, Zoom estimates revenue of between $4.53bn and $4.55bn, compared with analyst expectations of $4.71bn.
“This outlook is consistent with what we are observing in the market today,” chief financial officer Kelly Steckelberg said.
“Specifically, it assumes that our enterprise business will grow substantially faster than our online business. It also assumes that our year-over-year total revenue growth rate will modestly accelerate in late financial year 2023,” she said.
As of December 31, the company had 509,800 paid customers with more than 10 employees, up by about 9 per cent.
The company, which is based in California, invested about $117m in research and development in the November-January period. The R&D investment was more than 9.2 per cent of the total revenue earned during the quarter.
Zoom's net cash flow provided by operating activities amounted to $209.4m in the fourth quarter, about 47 per cent less than the same period in the 2021 financial year.
Total cash and marketable securities stood at more than $5.4bn on January 31.
Honeymoonish
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UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
MATCH INFO
Juventus 1 (Dybala 45')
Lazio 3 (Alberto 16', Lulic 73', Cataldi 90 4')
Red card: Rodrigo Bentancur (Juventus)
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
MEFCC information
Tickets range from Dh110 for an advance single-day pass to Dh300 for a weekend pass at the door. VIP tickets have sold out. Visit www.mefcc.com to purchase tickets in advance.
'Munich: The Edge of War'
Director: Christian Schwochow
Starring: George MacKay, Jannis Niewohner, Jeremy Irons
Rating: 3/5
Have you been targeted?
Tuan Phan of SimplyFI.org lists five signs you have been mis-sold to:
1. Your pension fund has been placed inside an offshore insurance wrapper with a hefty upfront commission.
2. The money has been transferred into a structured note. These products have high upfront, recurring commission and should never be in a pension account.
3. You have also been sold investment funds with an upfront initial charge of around 5 per cent. ETFs, for example, have no upfront charges.
4. The adviser charges a 1 per cent charge for managing your assets. They are being paid for doing nothing. They have already claimed massive amounts in hidden upfront commission.
5. Total annual management cost for your pension account is 2 per cent or more, including platform, underlying fund and advice charges.
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
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The Uefa Awards winners
Uefa Men's Player of the Year: Virgil van Dijk (Liverpool)
Uefa Women's Player of the Year: Lucy Bronze (Lyon)
Best players of the 2018/19 Uefa Champions League
Goalkeeper: Alisson (Liverpool)
Defender: Virgil van Dijk (Liverpool)
Midfielder: Frenkie de Jong (Ajax)
Forward: Lionel Messi (Barcelona)
Uefa President's Award: Eric Cantona
ELECTION%20RESULTS
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more from Janine di Giovanni
KILLING OF QASSEM SULEIMANI
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Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
No.6 Collaborations Project
Ed Sheeran (Atlantic)
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
UAE currency: the story behind the money in your pockets
In 2018, the ICRC received 27,756 trace requests in the Middle East alone. The global total was 45,507.
There are 139,018 global trace requests that have not been resolved yet, 55,672 of these are in the Middle East region.
More than 540,000 individuals approached the ICRC in the Middle East asking to be reunited with missing loved ones in 2018.
The total figure for the entire world was 654,000 in 2018.
Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.
Based: Riyadh
Offices: UAE, Vietnam and Germany
Founded: September, 2020
Number of employees: 70
Sector: FinTech, online payment solutions
Funding to date: $116m in two funding rounds
Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices
'My Son'
Director: Christian Carion
Starring: James McAvoy, Claire Foy, Tom Cullen, Gary Lewis
Rating: 2/5
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
All or Nothing
Amazon Prime
Four stars
Christopher Robin
Starring: Ewan McGregor, Haley Atwell, Jim Cummings, Peter Capaldi
Three stars
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The specs
Engine: 3.0-litre six-cylinder MHEV
Power: 360bhp
Torque: 500Nm
Transmission: eight-speed automatic
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