Rising Remote Work Trend During Pandemic Pushes Zoom’s Profit Up By 3,300%

With the novel coronavirus pandemic forcing people to work from home necessitating the need for video conferencing to connect staff working from home, there has been growth in demand for Zoom’s services and consequently the company’s revenues jumped by more than 350 per cent year on year in the second quarter with its profits for same period increased by about 10 folds compared to the same period a year ago.

Net profit of $185.7 million for the quarter through July 31 was reported by the California-based video communication service provider, which was almost 3,300 per cent higher compared to the same period a year earlier. There was an increase of 355 per cent in revenues during the quarter at $663.5 million.

“As remote work trends have accelerated during the pandemic, organizations have moved beyond addressing immediate business continuity needs to actively redefining and embracing new approaches to support a future of working anywhere, learning anywhere, and connecting anywhere,” Zoom CEO Eric Yuan said Monday in an earnings call.

Zoom increased its outlook for revenue generation for the entity rear to between $2.37 billion and $2.39 billion on the basis of the strong quarterly results. The company had earlier forecast revenues of between $1.775 billion and $1.8 billion for the entire 20202.

There were about 370,000 corporate customers that had more than 10 employees were achieved by the company by the end of July. That number was up by almost 460 per cent compared ot the same month a year ago. The number of customers who paid more than $100,000 a year for the service – which constituted the highest paying customers of the company, increased by more than 100 per cent year on year in the quarter to reach 988.

During the quarter, ExxonMobil had become a Zoom customer, Yuan said on the earnings call.

There was a growth of more than 600 per cent year on year in revenues for the company from its clients in Asia Pacific and Europe, the Middle East and Africa. That number was more than one third of the total revenues of the company. There was an almost 300 pr cent growth in revenues generated from the Americas.

“We will continue to invest in international expansion to capitalize on our brand awareness and the increased global opportunity,” Yuan said.

In July, this US based video conferencing company had announced that it would be increasing its existing workforce in India’s financial capital, Mumbai by three folds and would also develop new data centres in the tech hubs of Bangalore and Hyderabad.

But the platform also faced some strains because of the exploding popularity. Outages in some parts of the world were experienced by the service last month. The company s laos drawnw into controversy after it shutdown of a US human rights group’s account in China following an event hosted by the account to mark the anniversary of the Tiananmen Square massacre in China.

(Adapted from CNN.com)

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