Zoom reported strong financial results at the end of the year, showing that its video conferencing platform continues to enjoy attractiveness even in a period when many companies have announced massive layoffs and significant cost cuts.
The platform saw a 27% increase in customer numbers, which CEO Eric Yuan attributes largely to a dedicated and growing corporate customer base.
Enterprise revenue grew by a staggering 24% to more than half of the company’s total revenue, and Zoom now boasts an estimated 213,000 enterprise customers.
Zoom in on year-end results
Total revenue for the fiscal year was up 7% year-on-year to $4.39 billion, with the last quarter accounting for nearly a quarter of that at $1.12 billion (up 4% year-on-year).
“While the macroeconomic situation continues to negatively affect our overall growth, we have maintained a healthy balance sheet,” said Yuan.
Zoom’s projections for the future are a bit more modest than its recent successes, but it still measures healthy growth with fiscal year 2024 revenues estimated at $4.44 to $4.46 billion.
While Zoom has an ambitious outlook for the coming year, it has not been immune to the struggle nearly every tech company has faced in recent months as spending has fallen. Just days after the end of the fourth quarter, the company announced layoffs of around 1,300 employees, or 15% of its workforce – one of the most significant layoffs in proportion to other companies, which tend to stay below 10%.
Zoom owes much of its success to the ongoing trend of hybrid work, where companies are forced to spend on video calling packages to enable collaboration between employees. With no immediate signs of a mass return to the office, the company seems to be in a fairly good place for a while yet.