Revenue growth slows for Zoom in Q3 2022

Zoom Video Communications Inc. has announced its financial results for Q3 2022 ended 31 October 2021, revealing slowing growth with revenue at $1.05bn, an increase of 35 percent year-on-year. 

In the previous quarter, Zoom’s revenue grew by 54 percent, and surged 360 percent a year earlier due to increased demand fuelled by the pandemic.  

For Q3 2022, Zoom reported a GAAP operating margin of 27.7 percent. It also said it had 2,507 customers contributing more than $100,000 in trailing 12 months revenue, up 94 percent from the same quarter of the last fiscal year. 

 For Q4 2022, Zoom is projecting revenue of between $1.051bn and $1.053bn, with profits on a non-GAAP basis of $1.06 to $1.07 a share. 

Eric S. Yuan, Zoom founder and CEO, said: “Through innovation and dedication, we will continue to deliver happiness to our customers. Looking forward, we expect to close the year between $4.079 to $4.081 bn in total revenue, representing approximately 54 percent year-over-year growth, alongside strong profitability and operating cash flow growth. We are well on our way to becoming an indispensable platform for enterprises, individuals, and developers to connect, collaborate, and build in the flexible hybrid world of work. We believe our global brand, innovative technologies, and large customer base position us well for the future.”