Zoom Sales Up 355%, Raises Annual Guidance
Virtual meeting provider, Zoom, has reported a whopping 355% jump in quarterly sales as remote workers move online during the cronavirus pandemic. The company has projected further sustained growth.
Second quarter revenue jumped over four times year-on-year to US$663.5 million, trumping analysts expectations for around US$500 million.
Earnings notched around 92 cents per share, up from around 45 cents commentators tipped.
For the fiscal year ending January, Zoom forecasts sales of US$2.39 billion, with adjusted profit of US$2.40 – US$2.47 a share – trumping analyst expectations for US$1.81 billion and $1.25 a share respectively.
The news comes after Zoom initially projected fiscal-year revenue of US$1.8 billion.
Shares climbed over 9% in extended trading, closing at a record US$325.10 earlier this week.
Zoom Chief Executive Officer, Eric Yuan, attributes the coronavirus pandemic for shifting organisational behaviour into the longer-term:
“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 reportedly has nearly a thousand clients spending over US$100,000 on Zoom service – double the previous year – adding to over 370,000 business customers with over ten employees.
The software company is eyeing continued international growth, specifically from population rich demographics as India.