The effective reorientation of the firm has allowed Zoom Video Communications Inc. (NASDAQ: ZM), a communications platform, to continue to grow revenue even after the lockdown was lifted. The corporation just released the results of the previous quarter.
Zoom Video Communications’ sales climbed by 12% year over year to $1.1 billion in the first quarter of the fiscal year 2023. The growth in revenue in the corporation is linked to a shift in the company’s strategy, among other factors.
During the lockout, Zoom Video Communications Inc. (ZM) concentrated on connecting employees who were working from home. However, it appears that the demand for a communication platform vanished when staff returned to their workplaces.
ZM stock, on the other hand, is now marketing its products as hybrid work solutions for people who work in the main office, branch offices, at home, in the field, or alternate between various locations. Total Zoom Enterprise clients climbed by 24%, while the number of customers paying more than $100,000 per year increased by 46% as a result of the new positioning.
Zoom Video Communications Inc. (ZM), on the other hand, is witnessing a drop in profitability despite increased sales. The expensive marketing and development expenditures are one cause. After the “hot” phase of the epidemic, the corporation is compelled to spend a lot of money on acquiring clients and developing new items.
Spending on research, for example, surged by 120 percent year over year, while marketing spending increased by 48 percent. Non-GAAP net income was $1.03 per share, down from $1.32 per share a year ago, while GAAP earnings were roughly half as much at $0.37 per share.
Zoom Video Communications, on the other hand, has demonstrated that it can stay important even when most workers have returned to work.
The shares of Zoom Video Communications Inc. (ZM) have gained 9.67% in the last week and 8.41 percent in the last month. Its price has dropped 38.97 percent this year and 64.82% in the last year.