Zoom reported a 12.1% YoY increase in its non-GAAP EPS to USD 1.11 for Q3 FY2022, exceeding analyst expectations of USD 1.09. Zoom’s revenue rose 35.2% YoY to USD 1.05 billion, once again, beating analyst expectations of USD 1.02 billion. However, Zoom’s Q3 FY2022 revenue growth is reported to be its lowest growth rate since its IPO in 2019.

Revenue growth was primarily driven by a 94% year-over-year (YoY) increase in the number of customers contributing more than USD 100,000 (trailing 12 months revenue) to 2,507 customers in Q3 FY2022. Zoom also reported an 18% YoY growth in customers with more than 10 employees in Q3 FY2022, and the trailing 12-month net dollar expansion rate of these customers was above 130% for the 14th consecutive quarter.

Zoom’s gross profit increased by 50.4% YoY to USD 780 million, while the gross margin improved by ~750 basis points to 74.2% in Q3 FY2022. Zoom’s non-GAAP operating income increased by 41.4% YoY to USD 411 million in Q3 FY2022, reflecting an operating margin of 39.1% in Q3 FY2022 vs 37.4% in Q3 FY2021.

The company revised its FY2022 revenue guidance slightly up to USD 4.079–4.081 billion (implied  53.8–53.9% YoY growth) from the previously guided full year revenue of USD 4.005–4.015 billion. Non-GAAP diluted EPS guidance for FY2022 was also upgraded slightly to USD 4.84–4.85 (44.9–45.2% YoY) from the previous guidance of USD 4.75–4.79.