Zoom Video Communications disclosed its first quarterly results as a public company, and it didn’t disappoint.
Sales more than doubled from the same quarter last year, and the videoconferencing software maker said it ended its fiscal first quarter with 58,000 customers that have more than 10 employees, a year-over-year increase of 86%.
“Delivering happiness to our customers is our number one priority,” Zoom president and CEO Eric S. Yuan said. “If we keep them happy, we believe we will succeed today and in the future.”
Wall Street seems happy, too. Shares of Zoom, which had already soared from an April initial public offering price of $36 to a June 6 closing price of $79.43, rose more than 11% in after-hours trading. Here are the highlights from the quarter, which Yuan and other executives discussed in further details with analysts on—what else—a Zoom video call after the close of regular trading.
Total revenue skyrocketed from $60 million in the year-ago quarter to $122 million in the three months ended April 30. Revenue from US-based customers grew 98% to $98.2 million, while revenue from international-based customers grew 127% to $49.6 million.
Zoom broke even on a per-share basis under generally accepted accounting principles, versus a loss of $0.02 a share a year earlier. On a non-GAAP basis, which is adjusted for special costs including stock-based compensation, the company earned $0.03 a share, exceeding estimates by Wall Street analysts.
Zoom reported free cash flow of $15.3 million, compared to a negative $1.1 million in the year-ago quarter. The company ended the most recent quarter with $737.2 million in cash, including $543.5 million in proceeds from the IPO and private fundraising.
Zoom projects total revenue of $129 million to $130 million for the fiscal second quarter, when it expects to earn $0.01 to $0.02 a share on a non-GAAP basis.
For the full year, Zoom forecasts revenue of $535 to $540 million and non-GAAP income from operations of $0.02 to $0.03 a share.
Yuan said he is focused on continuing to transform how companies communicate, saying on the call: “We are in the early stages of video becoming the new voice.”
The company launched Zoom Phone, a cloud-based phone system, in January. But investors had some hesitation about whether the service would have as much of an impact as its video platform. Yuan was confident that phone adoption will continue to grow, arguing that the phone integrates well with the broader platform.
With such rapid growth overall, one investor on the earnings call wanted to know how Zoom will continue to make sure its employees—who number more than 2,000 now—will stay happy. Yuan admitted that company culture is what keeps him “up at night,” and said he continues to strive for a transparent culture with direction from his chief people officer and employee engagement surveys.
Zoom plans on investing more in research and development, and in sales and marketing. He’ll no doubt aim to showcase the returns on both in future video calls with Wall Street.