September 2, 2020
As the coronavirus pandemic triggered a surge in video-conferencing software for work meetings, education, and keeping in touch with friends and family, Zoom’s revenue rises quadruple times.
The technology company increased its customer numbers five and a half times compared to the same months last year in the previous quarter.
Thanks to its app for video calls and company meetings, Zoom is now one of the world’s fastest-growing tech companies, and it has become an essential part of working life for many companies in a socially distanced world.
On Monday, the firm’s share price soared 23 percent during off-hours to $325.10.
This leaves Zoom approaching in on a valuation of $100bn, greater than corporate colossal like Ford and General Motors.
Zoom has been remarkably more prosperous than its rivals by converting customers who use its free services into bought subscriptions.
Since the 31st of July, Zoom already had 370,200 customers with only ten employees; this is a considerable leap from 66,300 from the last year and gained about 105,000 from the end of April this year.
Zoom’s revenue for the May-July quarter has risen fourfold to $663.5m (£495.92).
The biggest question for Zoom right now is whether it can linger its quick growth after the pandemic is organized.
After proclaiming the company’s results, Zoom Chief Executive Eric Yuan hit an upbeat tone on the situation.
In the first week of June, Zoom warned that significant customers would cancel subscriptions if workers returned to their offices as lockdown restrictions were being lifted.
However, in many countries, this includes the UK; professional workers have stayed at home and expressed their desire to continue working from home.
Other big companies like Twitter and Schroders have said that their staff can continue to work from home indefinitely. Capita, an outsourcing company, announced its plans this week to end leases on a third of its office space as they cut costs and adopt new ways of working.
Zoom’s swift rise has not been deprived of difficulties. Some hackers and others have exploited security weaknesses to intrude on private meetings, triggering some users to abandon it. The company’s platform has also undergone some significant outages that left users powerless to access sessions.