Wednesday, June 2nd, 2021
Home office profiteer
Zoom eight times its profit
The video conferencing service Zoom continues to benefit massively from the change in the world of work in the corona pandemic. Sales in the first quarter are significantly higher than analysts had expected.
The continuing trend towards home offices is causing the Zoom video service to boom. Net income rose to $ 227.4 million in the first quarter, more than eight times the prior-year period. As the US company announced on Tuesday after the US market closed, sales almost tripled to $ 956.2 million. Analysts had expected an average of just 906 million. Zoom shares fell after the hours after the presentation of the numbers by around five percent, but then turned into positive territory.
Recently, more and more users who have been using the service regularly since the outbreak of the pandemic have opted for a paid subscription model. For many people in the home office, Zoom has become synonymous with video conferencing, with which employees can exchange ideas and talk to customers, or students can network with teachers.
The company, which was founded in 2011 in San Jose and has since struggled with security gaps in encryption or so-called zoom-bombing, is not without competition. Video calls and conferences are also possible via Microsoft’s Teams office software, Cisco’s Webex or offers from the tech companies Google and Facebook. For the future, company boss Eric Yuan wants to prepare, among other things, that Zoom will also take over voice telephony in companies. Yuan does not believe that there will be a return to everyday life before Corona: “The hybrid work model will remain.”
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