For most startups, hitting $100M in ARR (annual recurring revenue) is a big goal and takes a lot of hard work to achieve. Well, Zoom, has just hit $1B in quarterly revenue, that’s an ARR of $4B!
Despite this achievement, Zoom’s stock fell 12%
on the announcement - all this despite beating expectations for this quarter.
The main reason for this is due to slowing growth in revenue. The company’s revenue growth of 54% year-over-year may have left investors feeling a tad disappointed, compared with the growth of 191% seen in the previous quarter. The next quarter will be even slower, with Zoom guiding for just 31% revenue growth.
Zoom’s CFO, Kelly Steckelberg, claims that buyers are now more thoughtful and measured - implying panic buying during the peak of the COVID-19 pandemic.
According to analysts, for companies like Zoom who have thrived in the pandemic, the real question is what post-pandemic life will be.