Kelly Steckelberg, Zoom's Chief Financial Officer, has announced first-quarter sales of $1.141 billion, up 3% on the previous year. Zoom exceeded analysts' expectations in terms of revenues, profitability and free cash flow.
It reported 5% growth in the corporate segment and better-than-expected performance in the small and medium-sized enterprise (SME) segment, mainly driven by online sales.
Despite a slight decline in the number of customers, Zoom recorded an 8% year-on-year increase in customers contributing more than $100,000 in revenue over the last twelve months. This segment is a key growth driver for the company.
In the face of competition from Microsoft Teams, Zoom highlights the challenges of fair competition, especially in Europe where regulatory discussions are ongoing. To meet investor expectations, Zoom has launched a $1.5 billion share buyback programme, with 2.4 million shares already bought back in the first quarter.
Bloomberg TV provided by MT Newswires

Bloomberg videos