August 4, 2021

Zoom boom continues, grossing $ 227 million in last quarter

Zoom is still booming, increasing the prospects that the video conferencing service will be able to maintain its momentum, even as the pandemic of relaxation reduces the need for virtual meetings. Some signs of optimism appeared in the company’s latest quarterly earnings report released on Tuesday. This resulted in a 3% gain in the recently plummeted Zoom shares to € 338 after the numbers were released.

Zoom CEO Eric Yuan sought to reassure Wall Street that the San Jose, Calif., Company will always play a key role in a changing environment that should give workers more flexibility to divide their time between home and office.

“Zoom is here to help each client calibrate their future business model in their own way,” Yuan told analysts at a meeting on Tuesday on the company’s service. “Many companies are redesigning the workplace to improve the hybrid work experience. “

Zoom’s revenues and profits continued to grow at breakneck rates that exceeded analysts’ forecasts. But other indicators described a business that could face more headwinds with the lifting of stay-at-home restrictions that have propelled the popularity of video conferencing service over the past 15 months.

Zoom the logo.

In a key measure, Zoom ended its February-April quarter with 497,000 customers employing 10 or more workers and subscribing to the premium version of its service. This was a gain of 29,900 customers in this category from the November-January quarter, Zoom’s smallest increase in a three-month period since the start of the pandemic.

By comparison, Zoom added more than 183,000 customers with 10 or more employees during the same period last year, when the crackdown on the pandemic was in its infancy.

These larger subscribers will be critical to Zoom’s continued success, as they typically enter into longer-term contracts than employers with only a few workers who tend to prefer monthly engagements.

As a sign of confidence, Zoom’s management has forecast revenue above analysts’ estimates for the current May-July quarter and for the full year, according to FactSet Research.

For its full year ending next January, Zoom now forecasts annual sales of nearly $ 4 billion. That would be an increase of about 50% from last year, which saw revenues quadruple from the previous year.

The uncertainty surrounding Zoom’s outlook in a post-pandemic economy has already caused its share price to plunge more than 40% from its peak of nearly € 589 reached last October. Zoom’s current market value of nearly $ 100 billion is still more than triple what it was before the World Health Organization declared a global pandemic in March 2020.

In addition, Zoom is making a lot more money than before the pandemic.

Zoom Video Communications Inc. earned $ 227 million, or 74 cents per share, in its most recent quarter, compared to profit of $ 27 million in the same period last year. Revenue for the period nearly tripled from the same period last year to $ 956.2 million.


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