Zoom has become a ubiquitous presence for many of us over the past few years, but any doubts the company might struggle to prosper once the pandemic eases have been completely burned by its latest financial results.
The videoconferencing giant reported revenue of $1.073 billion in the first quarter of 2023, up 12% year over year, while the outlook for the second quarter was also better than expected.
The stronger-than-expected results also sent Zoom shares soaring 16%, with their value plummeting after many countries eased pandemic restrictions.
Perhaps even more impressively, given how many companies are desperately trying to get their employees back to the office full-time, Zoom has recorded a big jump in corporate customers with big spending.
The company said the number of customers contributing more than $100,000 grew 46% year over year, suggesting that hybrid work is indeed the way forward. Overall, Zoom now has about 198,900 enterprise customers, up 24% from the same period last fiscal year.
Zoom is focused on developing a range of enterprise-focused tools and services to attract such customers, noting that companies like Zoom Rooms and Zoom Phone hit 3 million seats in the quarter.
“During the first quarter, we launched Zoom Contact Center, Zoom Whiteboard and Zoom IQ for Sales, demonstrating our continued focus on enhancing the customer experience and facilitating hybrid work. We believe these innovative solutions will further expand our relationship with customers going forward market opportunities for growth and expansion,” said Eric S. Yuan, founder and CEO of Zoom.
In addition to the aforementioned products, Zoom will reportedly expand into the customer service market, having recently completed a deal to acquire contact center company Solvvy.
The company also announced a wave of updates that appear to be aimed at establishing its own Metaverse. The new collaboration mode allows hosts to initiate creative experiences for attendees and let them interact with the app, while breakout rooms are enclosed discussion spaces in the main conference room where people can have more focused conversations.