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Zoom saw total revenue of more than $4 billion in 2021

By Shannon Williams
Wed 2 Mar 2022

Zoom saw total revenue of more than $4 billion for the year ending 31 January, 2022, a growth of 50% year on year.

The company has announced financial results for the fourth quarter and fiscal year ending 31 January, 2022, reporting strong results along with increased profitability and operating cash flow growth as its global customer base continued to grow and find new use cases for the company's communications platform.

“Looking forward, we are addressing a large opportunity as we expect customers will continue to transform how they work and engage with their customers," says Zoom founder and CEO, Eric S. Yuan.

"It is apparent that businesses want a full communications platform that is integrated, secure, and easy to use. We are proud to lead the charge of the digital transformation for communications," he says.

"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.”

Fourth Quarter Fiscal Year 2022 Financial Highlights

On a quarter-over-quarter basis, Asia Pacific revenue grew slightly faster than the overall company. APAC highlights from Q4 FY2022 earnings include:

  • For Q4 FY22, APAC (14.4% of revenues) were $155 million, up from $118 million (13.3% of revenues) in Q4 FY21, representing a 31.4% YoY growth.
  • Zoom closed its largest Zoom Rooms deal in APAC with a customer deploying more than 3,300 Zoom Rooms to drive hybrid work across their offices. 
  • LIXIL Group Corporation, a Japanese manufacturer and pioneer of building materials and housing equipment, added 10,000 Zoom Phone licences in Q4.

Total revenue for the quarter was $1,071.4 million, up 21% year over year, while GAAP income from operations for the quarter was $251.8 million, compared to GAAP income from operations of $256.1 million in the fourth quarter of fiscal year 2021.

After adjusting for stock-based compensation expense and related payroll taxes, and acquisition-related expenses, non-GAAP income from operations for the fourth quarter was $420.3 million, up from $360.9 million in the fourth quarter of fiscal year 2021. For the fourth quarter, GAAP operating margin was 23.5% and non-GAAP operating margin was 39.2%.

Net Income and Diluted Net Income Per Share: GAAP net income attributable to common stockholders for the quarter was $490.5 million, or $1.60 per share, compared to GAAP net income attributable to common stockholders of $260.4 million, or $0.87 per share in the fourth quarter of fiscal year 2021.

Non-GAAP net income for the quarter was $393.6 million, after adjusting for stock-based compensation expense and related payroll taxes, acquisition-related expenses, losses on strategic investments, income tax benefits from discrete activities, and undistributed earnings attributable to participating securities. Non-GAAP net income per share was $1.29. In the fourth quarter of fiscal year 2021, non-GAAP net income was $365.4 million, or $1.22 per share.

Full Fiscal Year 2022 Financial Highlights

Total revenue for the fiscal year was $4,099.9 million, up 55% year over year.

Income from Operations and Operating Margin: GAAP income from operations for the fiscal year was $1,063.6 million, compared to GAAP income from operations of $659.8 million for fiscal year 2021. After adjusting for stock-based compensation expense and related payroll taxes, expenses related to charitable donation of common stock, litigation settlements, net, and acquisition-related expenses, non-GAAP income from operations for the fiscal year was $1,657.1 million, up from $983.3 million for fiscal year 2021. 

For the fiscal year, GAAP operating margin was 25.9% and non-GAAP operating margin was 40.4%.

Net Income and Diluted Net Income Per Share: GAAP net income attributable to common stockholders for the fiscal year was $1,375.1 million, or $4.50 per share, compared to GAAP net income attributable to common stockholders of $671.5 million, or $2.25 per share for fiscal year 2021.

Non-GAAP net income for the fiscal year was $1,549.1 million, after adjusting for stock-based compensation expense and related payroll taxes, expenses related to charitable donation of common stock, acquisition-related expenses, gains on strategic investments, litigation settlements, net, income tax benefits from discrete activities, and undistributed earnings attributable to participating securities. Non-GAAP net income per share was $5.07. In fiscal year 2021, non-GAAP net income was $995.7 million, or $3.34 per share.

Some 2,725 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 66% from the same quarter last fiscal year. Approximately 509,800 customers with more than 10 employees, up approximately 9% from the same quarter last fiscal year. A trailing 12-month net dollar expansion rate for customers with more than 10 employees of approximately 129%.

At the end of the fourth quarter of fiscal year 2022, Zoom had approximately 191,000 Enterprise customers, up 35% year over year, and a trailing 12-month net dollar expansion rate for Enterprise customers of 130%.

For the first quarter fiscal year 2023, Zoom expects total revenue to be between $1.070 billion and $1.075 billion and non-GAAP income from operations is expected to be between $345.0 million and $350.0 million. 

For the full fiscal year 2023, total revenue is expected to be between $4.530 billion and $4.550 billion and non-GAAP income from operations is expected to be between $1.430 billion and $1.450 billion. 

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