Zoom doubles forecast for full-year revenue on remote-work boost

Zoom doubles forecast for full-year revenue on remote-work boost

The company's profit sky-rocketed to Dollars 27.0 million compared to USD 0.2 million in the year-ago quarter.

Zoom Video expects full-year earnings in the range of $1.21 to $1.29 per share, with revenue ranging from $1.78 billion to $1.8 billion.

"The Covid-19 crisis has driven higher demand for distributed, face-to-face interactions and collaboration using Zoom", founder and chief executive Eric Yuan said in a release.

"Drivers of total revenue include acquiring new customers and expanding across existing customers", Zoom said, adding that at the end of the first quarter of fiscal year 2021, it had approximately 2,65,400 customers with more than 10 employees, up approximately 354% from the same quarter last fiscal year. In addition, he spoke of an "unprecedented number of free participants" that could lead to upselling opportunities later.

This was announced by the company's CEO during a recent earnings call with the investors. The company now expects full-year adjusted earnings of $1.21 a share to $1.29 a share, after previously guiding for yearly profit of 42 cents to 45 cents a share. For the full year, Zoom now expects revenue of $1.78 billion to $1.8 billion, almost double Zoom's previous annual forecast for a maximum of $915 million in yearly sales. However, Zoom's inventory dropped in after-hours buying and selling on Tuesday as traders and analysts started to fret about its means to deal with opponents aiming to muscle in on the video-conferencing boom.

Such explosive growth became possible against the backdrop of the coronavirus pandemic when companies around the world switched to remote work.

Video calling and conference platform Zoom has emerged as one of the top platforms amid the ongoing Coronavirus pandemic. "They have this fantastic brand. now they have to leverage that brand and figure out which markets they're going to go after".

Still, Zoom can not afford to rest on its laurels, another analyst, Holger Mueller of Constellation Research Inc., told SiliconANGLE.

Zoom doubles forecast for full-year revenue on remote-work boost

Yuan likely made the statement to address how his product has been a constant target of internet trolls and racists, who've been breaking into Zoom meetings to harass unsuspecting users.

This is as more and more people have adopted the videoconferencing platform while at home during the COVID-19 pandemic.

The majority of the costs are used for data centers and bandwidth to host calls.

According to Yuan, "Scaling capacity to meet this incredible increase in traffic and use cases while providing uninterrupted, reliable and high-quality services to our customers have been a tremendous undertaking for our team". What this means is paid users will get the benefit of end-to-end encryption, but free users won't.

The technology is created to prevent government spies, law enforcement, and even Zoom from decrypting your video call traffic on the platform.

Net cash provided by operating activities was $259.0 million for the quarter, compared to $22.2 million in the first quarter of fiscal year 2020. "Although in early March, we originally guided lower based on an increase in usage of our platform".

However, the record quarterly and promising outlook are shadowed by a lower margin due to higher demand from free users.

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