Communications technology giant Zoom Video Communications Inc. in a statement reported a surge in both its top and bottom lines in the second quarter but noted that a higher churn rate is expected in the second half of the year.
- Total revenue grew 355% to $663.5 million, from $145.8 million a year ago. Net income surged to $185.7 million from $5.5 million, while basic earnings per share grew to $0.66 from $0.02.
- The company reported a 428% growth in customers with over ten employees to 370,200. Customers paying over $100,000 also grew by 112% to 988, while free cash flow increased from $17.1 million to $373.4 million.
- The company raised its revenue guidance for the full year 2021 to approximately $2.37 billion to $2.39 billion, up 281% to 284% year-on-year. Third-quarter revenue is likely to range between $685 million and $690 million.
- The revenue assumed increased churn in the second half of the year versus the previous year, given the higher proportion of customers who purchased monthly subscriptions in the first quarter.
Chief Executive Eric Yuan welcomed the figures, noting that organizations are shifting from addressing their immediate business continuity needs. ZM is down 15.95%.