Sorry, looks like Zoom will be around for a whole lot longer

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Zoom has become a common presence for many of us over the past few years, but any doubts that the company may struggle to prosper following the easing of the pandemic have been well and truly scorched by its latest financial results.

The video conferencing giant reported Q1 2023 revenues of $1.073 billion, up 12% year over year while also giving a better-than-expected outlook for the second quarter.

The stronger-than-expected results also saw Zoom shares soar 16%, having seen their value decline sharply following the loosening of pandemic restrictions in many countries.

Enterprise success

Perhaps more impressively, given how many companies are desperately trying to get their employees to return to the office full-time, Zoom recorded a huge rise in big-spending enterprise customers.

The company said that the number of customers contributing more than $100,000 was up 46% year-over-year, showing that hybrid working really is the way forward. Overall, Zoom now has around 198,900 enterprise customers, up 24% from the same quarter in its last fiscal year.

Zoom has focused on developing a series of enterprise-focused tools and services to draw in such customers, with the company noting that the likes of Zoom Rooms and Zoom Phone reached three million seats during the quarter.

“In Q1, we launched Zoom Contact Center, Zoom Whiteboard and Zoom IQ for Sales, demonstrating our continued focus on enhancing the customer experience and promoting hybrid work. We believe these innovative solutions will further expand our market opportunity for future growth and expansion with customers,” said Zoom founder and CEO, Eric S. Yuan. 

Alongside the products mentioned above, Zoom is also reportedly set to expand into the customer service market, having recently finalized a deal to acquire contact center firm Solvvy.

The company also announced a wave of updates seemingly aimed at building its own Metaverse. A new Collaborate Mode allows hosts to start a creative experience for attendees and have them interact with an app, whereas Breakout Rooms are closed-off discussion spaces from the main meeting room where people can have a more focused conversation.

Mike Moore
Deputy Editor, TechRadar Pro

Mike Moore is Deputy Editor at TechRadar Pro. He has worked as a B2B and B2C tech journalist for nearly a decade, including at one of the UK's leading national newspapers and fellow Future title ITProPortal, and when he's not keeping track of all the latest enterprise and workplace trends, can most likely be found watching, following or taking part in some kind of sport.