Zoom Video Communications, Inc. (NASDAQ: ZM) announced its financial results for the second quarter of fiscal 2023, which ended July 31, 2023. Total revenue for the quarter was $1.14 billion, an increase of 3.6% year-over-year. Sales in the Enterprise segment even rose by an impressive 10.2% year-on-year. Operating margins reached 15.6% under GAAP (generally accepted accounting principles) and 40.5% under non-GAAP. Cash flow from operations increased 30.6% to $336.0 million compared to the prior year.
Zoom’s founder and CEO, Eric S. Yuan, emphasized the importance of the mission to enable borderless human connections as the company continues to develop innovative features such as Zoom IQ Meeting Summary and Team Chat Compose. In the second quarter, Zoom generated GAAP revenue per share of $0.59 and non-GAAP revenue per share of $1.34, both significantly higher than the prior year.
Customer metrics also reflect positive growth. The number of customers generating more than $100,000 in revenue in the last 12 months increased 17.8% year-over-year. In addition, Zoom saw a 6.9% year-over-year increase in enterprise customers.
Zoom has an optimistic outlook for the current fiscal year. For the third quarter, total revenue is expected to be between $1.115 billion and $1.120 billion, with non-GAAP operating income between $400.0 million and $405.0 million. For the full fiscal year 2024, total revenue is expected to be between $4.485 billion and $4.495 billion, with non-GAAP operating income between $1.685 billion and $1.695 billion.
Zoom has established itself as an all-in-one collaboration platform that creates value for customers and supports modern ways of working through constant innovations such as Zoom Virtual Agent and Zoom Contact Center. The financial results reflect the strong growth and positive direction of the company.