Zoom Video Communications (NASDAQ: ZM) on Thursday announced first quarter results for fiscal 2020 that sent the stock skyrocketing. The total revenue for the company swelled to USD 122 Million, a 103% growth rate year-over-year. The increase in revenue has been driven by a growing customer base. Zoom currently has approximately 58,500 customers with more than ten employees.
The Company reported non-GAAP income from operations for the first quarter was USD 8.2 Million, compared to a USD 0.8 Million loss in the same quarter the year prior. Non-GAAP operating margin was 6.7%.
Zoom also provided a financial outlook for the second quarter of fiscal 2020. Total revenue is expected to grow to between USD 129 Million and USD 130 Million. The Company expects non-GAAP operating income to fall between USD 2.0 Million and USD 3.0 Million. Non-GAAP earnings per share are also set to increase to between USD 0.01 per share and USD 0.02 per share.
Net cash provided by operating activities saw a massive increase to USD 22.2 Million, compared to USD 2.8 Million in the same quarter the year prior. The Company saw positive free cash flow this quarter compared to negative cash flow in the first quarter of fiscal 2019. Free cash flows grew to USD 15.3 Million, compared to negative USD 1.1 Million in the same quarter the year prior.
The Company gave a financial outlook for the remainder of fiscal 2020 in the earnings report.
Total revenue is expected to be between USD 535 Million and USD 540 Million. Non-GAAP income is expected to be between USD 0.0 Million and USD 3.0 Million.
The Company went public in April of 2019 with an IPO at USD 36 per share. Analysts estimated revenues of USD 111.4 Million for the quarter. The stock is currently trading for more than USD 90 per share. Zoom far outperformed analyst expectations.
The growing customer base has been a massive driver of the success that Zoom has experienced. The Company currently has 405 customers contributing more than USD 100,000 in trailing 12 months revenue, an approximate 120% increase from the same quarter last year.
“In our first quarter as a public company, strong execution and expanding adoption of Zoom’s video-first unified communications platform drove total revenue growth of 103% year-over-year. While we remain focused on strong growth, we are also pleased that our highly efficient business model and disciplined investment approach contributed to positive non-GAAP profitability and free cash flow,” stated Eric S. Yuan, President and Chief Executive Officer of Zoom.