More than two years into the Covid-19 pandemic, life has returned to normal in most parts of the world. With that return, some of the companies that profited from lockdowns and lifestyle changes brought about by the pandemic suddenly found themselves struggling. Some changes are here to stay, however, and many experts believe that hybrid work, i.e. the constant switching between office and remote work, is one of them. Zoom, one of the biggest "lockdown winners" of 2020, is banking on that new way of working, and despite its stock price telling a different story, the company has managed to build on its pandemic growth spurt, albeit at a slower pace.
"Work is no longer a place, it’s a space where Zoom serves to empower your teams to connect and bring their best ideas to life," Eric S. Yuan, Founder and Chief Executive Officer of Zoom said last year. "We are energized to help lead the evolution to hybrid work that allows greater flexibility, productivity, and happiness to both in-person and virtual connections." In the quarter ended April 30, Zoom's revenue surpassed $1 billion for the for the fourth consecutive quarter. That's compared to $188 million in the last quarter pre-pandemic quarter. Despite many workers returning to their offices, companies around the world continue to embrace a hybrid work model, which has proven not only effective in keeping the ball rolling during the pandemic, but also popular with workers who embraced the new freedom to work from anywhere.
As the following chart shows, Zoom saw its revenue skyrocket throughout the fiscal year ended January 31, 2021. For the twelve months ended January 31, 2021, Zoom's revenue amounted to $2.65 billion, up more than 300 percent from just $623 million the previous year. In the fiscal year ended January 31, 2022, Zoom's grew another 55 percent to $4.10 billion. For the ongoing fiscal year 2023, the company is expecting between $4.53 billion and $4.55 billion in revenue and non-GAAP operating income of $1.48 to $1.50 billion.