Zoom Video Communications Inc shares on Monday soared after the video-meeting company reported that quarterly revenue rocketed as its ranks of users more than quadrupled.
The Silicon Valley-based company that has become a popular way to work, learn or socialize during the COVID-19 pandemic said it made a profit of US$186 million on revenue of US$663.5 million in the quarter that ended on July 31.
That compared with net income of US$5.5 million in the same quarter the previous year.
Photo: AFP
“Organizations are shifting from addressing their immediate business continuity needs to supporting a future of working anywhere, learning anywhere, and connecting anywhere on Zoom’s video-first platform,” Zoom founder and chief executive Eric Yuan (袁征) said in an earnings release.
Zoom shares were up more than 22 percent in after-market trading that followed the release of the earnings.
Zoom reported that it ended the quarter with about 370,000 customers that had more than 10 employees, more than four times as many as it had in the same period the previous year.
The increase in customers built on a surge in the previous fiscal quarter, and appeared to offset investor concerns that Zoom’s popularity would decline when restrictions on movements ease and people can get back to seeing one another in person.
The pandemic has driven demand for virtual collaboration using the Zoom video conferencing platform, Yuan said.
The earnings come with Zoom still under pressure to deal with security and privacy issues. It has taken heat over uninvited cyberguests disrupting online meetings with a tactic called “zoombombing.”
Zoom was originally built for businesses with dedicated information technology teams to handle implementing security features, but first-time users flocked to the service to work or socialize from home when the pandemic hit.
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