Zoom is waiting for real leaps in growth in the past quarter: sales and profits multiply. The video conference company is benefiting from the Corona crisis – and remains optimistic.
The video conferencing company Zoom, which has become a big winner of the Corona crisis, sees no end to the demand for its services for the time being. After the explosive sales growth last quarter, Zoom expects business to remain at a similar level for the rest of the year.
In the second quarter, sales soared to $ 663.5 million year-on-year from just under $ 146 million – a phenomenal increase of 355 percent. It also turns out that Zoom's initial worries that the rapid growth could burn a hole in the coffers due to higher infrastructure costs, among other things, were unfounded. Quarterly earnings jumped to just under $ 186 million from $ 5.5 million a year ago.
Subscription customers count
For the current quarter Zoom now expects sales between 685 and 690 million dollars. That would mean that while the days of big newcomers are over, Zoom has been able to keep the business it has gained so far. For the entire year, the company forecast sales of just under $ 2.4 billion. This already includes the fact that you will lose some customers who bought monthly subscriptions in the first quarter, it said.
A basic version of Zoom can be used free of charge – there are subscription models for companies or if additional functions are required. The basis for the financial growth at Zoom are now 370,200 paying customers – 458 percent more than a year earlier.
Share price climbs
Zoom was originally intended as a business application. In the Corona crisis, not only the use in the home office increased, but also the use by private individuals as well as for sports courses, church services or educational offers. In April there were up to 300 million video conferencing participations a day – compared to 10 million in December.
The Zoom share rose in after-hours US trading on Monday by more than nine percent.
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