Zoom reports massive revenue growth in Q2 2021 financial results
Zoom has today announced its financial results for the quarter ended July 31 2021 (Q2), which sees the cloud communications company vastly increase its profit, cash flow and GAAP income, as well as an enormous 355% year-on-year increase in revenue.
Founder and chief executive officer Eric S. Yuan says the world’s shift towards remote solutions and amidst business continuity concerns at the beginning of the year has greatly affected the company’s standing.
“Organisations are shifting from addressing their immediate business continuity needs to support a future of working anywhere, learning anywhere, and connecting anywhere on Zoom’s video-first platform,” says Yuan.
At Zoom, we strive to deliver a world-class, frictionless, and secure communication experience for our customers across locations, devices, and use cases.”
Here are the highlights of Zoom’s Q2 2021 financial results:
Total revenue increased by 355% year-on-year for the company, totalling US$663.5 million.
Total cash, cash equivalents, and marketable securities as of July 31, 2020 was $1.5 billion.
Net cash provided by operating activities (cash flow) was $401.3 million for the quarter, compared to $31.2 million in the second quarter of fiscal year 2020, while free cash flow totalled $373.4 million, compared to $17.1 million in the second quarter of fiscal year 2020.
GAAP income from operations for the quarter was $188.1 million for Q2 2021, compared to $2.3 million in the second quarter of fiscal year 2020.
After adjusting for stock-based compensation expense and related payroll taxes, expenses related to charitable donation of common stock, and acquisition-related expenses, non-GAAP income from operations for Q2 2021 was $277.0 million, up from $20.7 million in Q2 2020.
GAAP net income attributable to common stockholders for the quarter was $185.7 million, or $0.63 per share, compared to $5.5 million, or $0.02 per share in Q2 2020.
Non-GAAP net income per share was $0.92, up from $0.08 per share in Q2 2020.
Zoom now has 370,200 customers with more than ten employees, a massive 458% rise year-on-year.
The company now has 988 customers contributing more than $100,000, up approximately 112% from the same quarter last fiscal year.
For the third quarter of the 2021 fiscal year, total revenue is expected to be between $685 million and $690 million, while non-GAAP income from operations is expected to be between $225 million and $230 million.
Total revenue for the full fiscal year 2021 is expected to be between $2.37 billion and $2.39 billion.