Zoom Video Communications is a company that provides remote conferencing services using cloud computing.
The company’s revenue surged more than 350% and its profits rocketed 10 times as much in the second quarter of this year as a result of many companies signing on to the video conferencing app to connect with their staff working from home during the pandemic.
In July, the California-based video communication service provider reported a net profit of over $185 million for the quarter, amounting to nearly 3,300% compared to last year. Revenues in the quarter were $663.5 million, up 355%.
The company’s shares hit a high record on Monday ahead of the earnings statement and eventually shot up to 28% during after-hours trading.
Chief Executive Officer of Zoom, Eric Yuan noted on Monday that “remote work trends have accelerated during the pandemic, organizations have moved beyond addressing immediate business continuity needs to actively redefine and embracing new approaches to support a future of working anywhere, learning anywhere, and connecting anywhere.”
From previous projections, the company expected between $1.775 billion and $1.8 billion but due to the sudden surge in usage, it has raised its outlook to $2.37 billion and $2.39 billion.
In terms of geographical revenue, that of the Middle East, the Asia Pacific, Europe and Africa, soared over 600% which accounted for one-third of the total. Revenue generated from America only increased by almost 300%. The CEO also noted in an interview that the company “will continue to invest in international expansion to capitalize on our brand awareness and the increased global opportunity.”
The videoconferencing company announced in July that it will triple its existing workforce in India’s financial capital, Mumbai, and at the same time, establish new data centres in the tech hubs of Bangalore and Hyderabad.
However, the exploding popularity of the app has caused some strains for the platform. Last month, it experienced outages in some parts of the world.
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I’m Deborah Aba Narkoah. I’m an avid reader, writer and public speaker.
