Video communications company Zoom has capped off an explosive year of growth with fourth-quarter revenue of $882.5m – a 369% year-on-year surge.
For the quarter ended 31 January, Zoom reported net income of $260.4m, up by a staggering 1,602% from the $15.3m reported a year ago.
In 2020 the San Jose, California-headquartered firm became a neologism for video calls as businesses and consumers relied on its software to communicate during Covid-19 lockdowns.
For Zoom this meant booming business, with the company reporting full fiscal year 2021 revenue of $2.65bn – up 326% on the previous year.
Its total annual net income attributable to common stockholders came in at $671.5m, or $2.25 per share. The previous fiscal year those figures stood at $21.7m and $0.09 per share, respectively.
In Q4 Zoom added some 467,100 paying customers with more than 10 employees, a 470% increase from the year-ago period.
These extraordinary growth figures have become commonplace in Zoom’s 2020 quarterlies. In the previous quarter, Zoom reported year-on-year revenue growth of 367% and in the preceding quarter revenue grew by 355%.
“The fourth quarter marked a strong finish to an unprecedented year for Zoom. In FY2021, we significantly scaled our business to provide critical communications and collaboration services to our customers and the global community in response to the pandemic,” said Eric Yuan, founder and CEO of Zoom, in a statement.
“We are humbled by our role as a trusted partner and an engine for the modern work-from-anywhere environment. Our ability to rapidly respond and execute drove strong financial results throughout the year.
“As we enter FY2022, we believe we are well-positioned for strong growth with our innovative video communications platform, on which our customers can build, run, and grow their businesses; our globally recognised brand; and a team ever focused on delivering happiness to our customers.”
Zoom expects revenue to be between $900m and $905m in its first fiscal 2022 quarter, with non-GAAP earnings per share between $0.95 and $0.97.
Throughout 2021 vaccine rollouts are expected to gradually allow lockdown measures to be lifted. This has raised questions as to whether Zoom can maintain the customers it drew in during the shift to remote working.
Yuan has previously said he expects post-pandemic work to be a hybrid mix of office and remote working.
This view is reflected in Zoom’s fiscal 2022 full-year outlook. For the rest of the year, Zoom expects total revenue to be between $3.76bn and $3.78bn, which would represent year-on-year growth of around 42%.
While not as dizzying as the 326% growth experienced in the past year, it suggests Zoom expects to maintain some of its momentum.
“Remote working has become the norm over the past year. With video calls replacing in-person meetings to enable collaboration, it’s no surprise cloud applications such as Zoom, are reaping the rewards from this changing style of working,” said Rufus Grig, chief strategy officer at cloud service provider Maintel.
“Even as we transition out of the pandemic, we’ll likely see reliance on these cloud-based applications continue to grow.”