Zooms revenue soars as pandemic increases demand for video service

Zooms revenue soars as pandemic increases demand for video service

The increase follows the surge in users as more people work from home and connect with their friends using video calls during the lockdown.

For the current quarter ending in August, Zoom Video expects its per-share earnings to range from 44 cents to 46 cents.

The company had also acquired Keybase to add engineering expertise to build an end-to-end encrypted meeting mode and also released Zoom 5.0 with new security features and enhancements.

For its full fiscal year 2021, Zoom said it expects revenue to top $1.77 billion, well ahead of Wall Street's forecast of $935.2 million. During the last quarter, Zoom reported a total revenue of $328 million whereas in the corresponding quarter previous year it had a revenue of $122 million.

Soccer Football - 3F Super League - AGF Aarhus v Randers - Ceres Park, Aarhus, Denmark - May 28, 2020.

Zoom recently launched a philanthropic foundation with initial grants to San Jose Digital Inclusion Fund, Destination Home, the CDC Foundation, the World Health Organization and the CDE Foundation.

The latest quarterly report shows the company now has about 265,400 customers with more than 10 employees, a near fourfold increase from a year earlier.

When the lockdowns began, Zoom raised the restrictions for the complimentary variation of its software program in China and also for teachers in several nations, consisting of the United Kingdom, assisting to drive its appeal. Chief Financial Officer Kelly Steckelberg said that daily meeting participants peaked at 300 million in April, but the number slightly declined in May.

Use of the company's software program leapt 30- layer in April, as the coronavirus pandemic compelled millions to function, discover and also hang out from another location.

Zoom is an underdog in the battle in teleconferencing.

The firm's net income, an unadjusted profit metric, rose from $0.2 million in the year-ago quarter to $27.0 million in its most recent three months. This number, compared to past year, has grown by 354%. Zoom, which didn't even mention the coronavirus during its last earnings call, has suddenly found itself in the position of being one of those few companies that became a verb. The company has been spending to bolster its network capacity, including by buying cloud-computing services from Oracle Corp. during the pandemic.

On Tuesday, Zoom claimed it anticipates sales as high as $1.8 bn (₤ 1.4 bn) this year - approximately dual what it anticipated in March.

The company's massive influx of enterprise users is hardly surprising as more companies have leaned on services like Zoom to ease their transition to remote work among shelter-in-place related office shutdowns. Other concerns have arisen regarding how the company has shared users' data.

Analysts say they expect Zoom to maintain its focus on business customers, since that's how it makes money.

Related Articles