Zoom users quadruple, making its shares to soar
NEWSMAN, Abuja – Video-meeting service app, Zoom has reported that its quarterly revenue rocketed as its ranks of users greatly increased, making its shares to soar.
Zoom became popular during the pandemic, enabling people to work, learn or socialize, and it to make a profit of $186 million on revenue of $663.5 million in the quarter that ended on July 31.
Founder and Chief Executive, Eric Yuan in an earnings release said “Organizations are shifting from addressing their immediate business continuity needs to supporting a future of working anywhere, learning anywhere, and connecting anywhere on Zoom’s video-first platform,”
Zoom shares were up more than 22 percent in after-market trades that followed release of the earnings, which beat market expectations.
The Silicon Valley-based company reported that it ended the quarter with approximately 370,000 customers that had more than 10 employees, more than four times as many than it had in the same period a year earlier.
The increase in customers built on a surge in the previous fiscal quarter, and appeared to offset investor concerns that Zoom’s popularity would decline when restrictions on movements ease and people can get back to seeing one another in person, Guardian reported.
“It is the survival of the adaptable, only Stone Age companies are insisting employees to physically come to work,” Global Equities Research analyst Trip Chowdhry said in a note to investors, calling Zoom a ‘cultural phenomenon’. The pandemic has driven demand for virtual collaboration using the Zoom video conferencing platform, ” Yuan said.
The earnings come with Zoom still under pressure to deal with security and privacy, taking heat over uninvited cyber guests disrupting online meetings with a tactic called “zoombombing.” As a result the company has poured resources into privacy and security.
Zoom was originally built for businesses with dedicated IT teams to handle implementing security features, but first-time users flocked to the service to work or socialize from home due to the pandemic.
According to Yuan, Zoom has learned a hard lesson that it should have provided more tech support, “we should have played the role of IT for first-time users.”