Zoom beat many market expectations and posted impressive growth for the second quarter. The big channel player said total revenue reached $1.138 billion for the quarter ended 31 July, 2023, which was up 3.6% year over year, and enterprise revenue was $659.5m, up 10.2% year over year.
Second quarter operating cash flow was $336m, up 30.6% year over year.
“Our mission of delivering limitless human connection remains core as we continue to innovate and expand our platform to help bring value and enhanced productivity to our customers with new AI features like Zoom IQ Meeting Summary and Team Chat Compose, as well as Intelligent Director,” said Eric Yuan, Zoom founder and CEO. “In addition to delivering innovation to our customers, we delivered GAAP EPS of $0.59 and non-GAAP EPS of $1.34, both up meaningfully year over year.”
Online revenue was $479.2m, down 4.3% year over year.
GAAP income from operations for the second quarter was $177.6m, compared to $121.7m last time.
At the end of the second quarter, Zoom had around 218,100 enterprise customers, up 6.9% annually.
Rebecca Crook, chief growth officer for EMEA at digital consultancy CI&T, said of the results: “Zoom purchased Anthropic in May, but as of now, they have only been incorporating AI on the customer support side. There is still huge untapped potential in terms of how Zoom may fully integrate AI capabilities across the platform to enhance the user experience.”
She added: “Trust will be a key factor in whether users want to embrace AI or not. Currently, to enable any AI features on Zoom, the user has to sign a consent form allowing the platform to train their AI models using customers’ content.”
Said Crook: “Video conferencing isn’t going to go away; it will be quite the opposite, with hybrid working now commonplace and increased pressure on companies to reduce carbon footprints. But the privacy of the meetings held on Zoom is essential, so how they handle this will be critical to whether using AI is right for them.”