BENGALURU: Video conferencing platform Zoom reported a total revenue of $777.2 million for the ended October 2020, up a whopping 367 per cent year-over-year, as global demand for online meeting solutions soared.
The start-up said in a statement that the total number of its customers with more than 10 employees stood at 433,700, higher by 485 per cent YoY and the number of customers contributing more than $100,000 in revenue rose by 136 per cent.
Zoom founder and chief executive officer Eric S Yuan said, “strong demand and execution led to revenue growth of 367 per cent year-over-year with solid growth in non-GAAP operating income and cash flow in our third fiscal quarter.
We expect to strengthen our market position as we finish the fiscal year with an increased total revenue outlook of approximately $2.575 billion to $2.580 billion for fiscal year 2021, or approximately 314 per cent increase year-over-year”.
In terms of cash flow, the net cash provided by operating activities stood at $411.5 million for thequarter under review, compared to $61.9 million in the corresponding quarter of the previous fiscal year.
Free cash flow, which is net cash provided by operating activities minus the purchases of property and equipment, stood at $388.2 million, compared to $54.7 million in the corresponding quarter of the previous financial year. Zoom’s management also said that the company expects its total revenue for financial year 2021 to come in at a range of between $806.0-811.0 million.
The video conferencing platform’s revenue outlook takes into consideration the demand for remote work solutions for businesses and also “assumes increased churn in the next quarter when compared to historic churn levels due to a higher percentage of customers who purchased monthly subscriptions,” the company said in a statement.