Zoom Video Communications Inc (NASDAQ:ZM) Q3 2021 Earnings Conference Call - Final Transcript

Nov 30, 2020 • 05:30 pm ET


Zoom Video Communications Inc (NASDAQ:ZM) Q3 2021 Earnings Conference Call - Final Transcript


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Hello, everyone, and welcome to Zoom's Third Quarter Fiscal Year 2021 Earnings Release. [Operator Instructions]

And at this time, I'm going to hand over to Tom McCallum, Head of Investor Relations.

Tom McCallum

Thank you, Matt. Hello everyone, and welcome to Zoom's earnings video webinar for the third quarter of fiscal 2021. We will start the webinar with a recording from Zoom's Founder and CEO, Eric Yuan. Then Zoom's CFO, Kelly Steckelberg will join to discuss the quarter and our outlook. We will then have a Q&A session hosted by Kelly that will end at approximately 3:30 p.m. pacific.

Our earnings press release was issued today after the market closed and may be downloaded from the Investor Relations page on the Zoom.com website. Also, on this page you'll be able to find a copy of today's prepared remarks and a slide deck with financial highlights that, along with our earnings release, include a reconciliation of GAAP to non-GAAP financial results.

During this call we will make forward-looking statements about our market size and growth strategy, our estimated and projected costs, margins, revenue, expenditures, investments, growth rates, our anticipated financial performance and other future events or trends, including guidance for the fourth quarter of fiscal 2021 and full-year 2021, our plans and objectives for future operations and expansion, growth, initiatives, strategies, market position, and the continued impact of the COVID-19 pandemic on our business.

These statements are only predictions that are based on what we believe today, and actual results may differ materially. These forward-looking statements are subject to risks and other factors that could affect our performance and financial results, which we discuss in detail in our filings with the SEC, including today's earnings press release and our latest 10-Q. Zoom assumes no obligation to update any forward-looking statements that we may make on today's webinar.

Now let's hear from Eric.

Eric S. Yuan

Hello, I hope you are all doing well. I am so sorry that I can't join you all live today, but I had a personal conflict arise. As we are in the season of Thanksgiving in the US, I want to express my ongoing gratitude for the commitment of our Zoom employees and the support of our customers, partners and investors during these unprecedented times. You all truly inspire and motivate us every day.

Now let me share with you a few recent business highlights: first, revenue grew 367% year-over-year in Q3. Second, with strong sales execution, our customers with more than 10 employees grew 485% year-over-year. And we are very delighted that, just recently, Gartner Research has named Zoom a Leader in the 2020 Magic Quadrant for Meeting Solutions, as well as a Leader in the Magic Quadrant for Unified Communications as a Service. This is the first year Zoom has qualified for inclusion in the Gartner Magic Quadrant for UCaaS and the sixth year of Meeting Solutions. We are also very thrilled to welcome Secretary Janet Napolitano to our Board of Directors.

We also had exciting wins in the quarter