Zoom's second-quarter revenue rose 4.9 per cent, while enterprise sales grew faster than its online business. nCino reported 10 per cent subscription growth and a GAAP operating margin of 8 per cent, up 1,500 basis points year on year. Enterprise software demand supplied the stronger growth line at both companies while their profitability measures moved in different directions.
Zoom's second-quarter revenue rose 4.9 per cent to 1.277 billion dollars. Enterprise revenue increased 7.8 per cent to 787.5 million dollars, while online revenue grew 0.6 per cent to 489.7 million dollars. The enterprise unit expanded faster than the company as a whole. The online business preserved its revenue base but added little growth, leaving the two customer channels with markedly different contributions to the quarter.[1]
nCino's second-quarter revenue increased 8 per cent to 161.0 million dollars, while subscription revenue grew 10 per cent to 143.5 million dollars. Its GAAP operating margin rose 1,500 basis points year on year to 8 per cent and its non-GAAP margin increased 500 basis points to 25 per cent. The company also announced a new share-repurchase authorization. Subscription revenue outpaced total growth, while the margin gains supplied the clearest profitability change in nCino's quarter.[2]
Zoom's GAAP operating income fell from 321.7 million dollars a year earlier to 314.3 million dollars, leaving an operating margin of 24.6 per cent. Cash from operations was 494.8 million dollars and free cash flow 472.4 million dollars. nCino started from a lower GAAP margin but delivered a 1,500 basis-point annual improvement. Enterprise software growth reached the two income statements differently: Zoom retained the higher operating margin, while nCino reported the larger year-on-year change in its margin.[1], [2]
