The developer of online service for video communication Zoom Video Communications reported for the third quarter of 2022 financial year. Results were slightly better than expected, although the rate of revenue growth has slowed down significantly. On the postmarket, the company's shares fell by 6%, to 227 $.
What changed
Compared to last year, Zoom's revenue grew by 35%, up to a billion dollars. This is the slowest growth rate since 2018. For comparison: at the end of last year and the beginning of this year, revenue increased by 350-370%.
Most of the growth in revenues from large companies. Zoom now has 2,500 clients, each of which brings more than 100 thousand dollars a year. It's on 94% more, than a year ago. But the number of small customers grew by only 18%, up to 512 thousand.
Compared to last year, net profit increased by 72%, up to 340 million, adjusted net profit — on 14%, up to 338 million dollars.
Zoom sales began to grow rapidly in the midst of a pandemic in the spring of 2020. Then the companies, schools and institutes sent employees and students to a distance, and for communication began to use Zoom. Now, as quarantine restrictions are lifted, revenue growth has begun to slow down.. As predicted by Zoom, in the next quarter, sales will increase even less - by 19%.
To find another point of growth, Zoom wanted to buy Five9, a developer of call center software, for $15 billion. Later found out: deal will not take place, and Zoom will develop its own software in 2022.
Investors have long been building slower revenue growth into the company's share price.. From October 2020, when papers were at their highest 580 $, shares have fallen by 60%, to 227 $. Index S&P 500 for the same period added about 35%.
Zoom Revenue and Q4 Forecast, million dollars
| 1к2020 | 122 (+103%) |
| 2к2020 | 146 (+95%) |
| 3к2020 | 167 (+86%) |
| 4к2020 | 188 (+77%) |
| 1к2021 | 328 (+169%) |
| 2к2021 | 664 (+355%) |
| 3к2021 | 777 (+365%) |
| 4к2021 | 882 (+369%) |
| 1к2022 | 956 (+191%) |
| 2к2022 | 1021 (+54%) |
| 3к2022 | 1051 (+35%) |
| 4к2022 | 1052 (+19%) |
122 (+103%)
