Zoom Video Communications has reported its financial results for the first fiscal quarter ending 30 April 2024. The company has shown a significant growth trajectory, expanding its offerings beyond video conferencing to become a comprehensive communication and collaboration platform.
According to the recent announcement, Zoom achieved a total revenue of USD $1,141.2 million for the first quarter, marking a 3.2% year-over-year increase. When adjusted for foreign currency impact, the revenue stood at USD $1,143.6 million, representing a 3.5% rise. Notably, the Enterprise revenue was reported at USD $665.7 million, an improvement of 5.3% year over year.
The company has also demonstrated strong profitability metrics. The GAAP operating margin for the first quarter was 17.8%, while the non-GAAP operating margin reached 40.0%. GAAP income from operations soared to USD $203.0 million from the significantly lower USD $9.7 million recorded in the same quarter the previous fiscal year. On a non-GAAP basis, the income from operations was USD $456.6 million, up from USD $422.3 million a year ago.
Zoom's net income for Q1 2024 was USD $216.3 million, translating to USD $0.69 per share, a stark contrast to the USD $15.4 million and USD $0.05 per share reported in the first quarter of fiscal year 2024. The non-GAAP net income was USD $426.3 million, or USD $1.35 per share, compared to USD $353.3 million, or USD $1.16 per share, in the same quarter the prior year.
The company noted that it had repurchased approximately 2.4 million shares of common stock during this period. Additionally, its total cash, cash equivalents, and marketable securities stood at USD $7.4 billion as of 30 April 2024.
Zoom attributes its financial performance to strategic integration of artificial intelligence (AI) across its platform, including the Zoom Contact Center and Zoom Workplace. These innovations have enabled better teamwork, streamlined communications, and increased productivity, according to CEO Eric S. Yuan. The operating cash flow surged by 40.6% to USD $588.2 million, and free cash flow increased by 43.6% to USD $569.7 million year-over-year.
As for customer metrics, the company now has 3,883 customers contributing more than USD $100,000 in trailing 12-month revenue, up roughly 8.5% from the same quarter last fiscal year. At the end of the first quarter of fiscal year 2025, Zoom had approximately 191,000 enterprise customers. During this period, Zoom transitioned around 26,800 enterprise customers with lower monthly recurring revenue to online customers, a move aimed at enhancing customer experience and operational efficiency.
The trailing 12-month net dollar expansion rate for enterprise customers was 99%, while the online average monthly churn was 3.2%, up 10 basis points from the same quarter last year. Online customers with a continual term of service for at least 16 months constituted 73.8% of the total online monthly recurring revenue, an increase of 180 basis points year over year.
Looking ahead, Zoom has provided guidance for the second quarter and full fiscal year 2025. The company expects Q2 revenue to be between USD $1.145 billion and USD $1.150 billion. For the full fiscal year 2025, revenue is anticipated to be in the range of USD $4.610 billion to USD $4.620 billion. Non-GAAP income from operations for the year is projected to be between USD $1.740 billion and USD $1.750 billion, with diluted earnings per share expected to be between USD $4.99 and USD $5.02.
