Zoom Inc sees increment in both Sales, Customers amid COVID-19 pandemic.
Video conferencing platform, Zoom Video Communications Inc has seen an increase in sales and customers amid the COVID-19 pandemic.
This follows the high demand for video conferencing service during the coronavirus pandemic.
Zoom showed that paying customers has hyped the app at the same time solving the problem of work, school, and life during various lockdowns.
Speaking on the issue, an analyst at Bloomberg Intelligence, Boyoung Kim stated, “A shift in work culture triggered by the COVID-19 pandemic urges corporations to pull forward adoption of cloud-based video-conferencing tools.”
Kim further said Zoom’s “intuitive technology and strong brand recognition should help the company pick up market share in video conferencing, outpacing the industry.”
The video conferencing platform, Zoom anticipated generating as much as $1.8 billion this fiscal year, which is almost three times the size of the business last year.
The Zoom app allows meetings for 40 minutes without charge. The results Tuesday suggested it can attract the paying clients needed to compete with services from Microsoft Corp., Cisco Systems Inc., and Google.
The company said its market has increased beyond a $43 billion estimate by 2022 made by analyst IDC, according to a 2019 regulatory filing.
Even though the company thought it would see a decline after the restrictions were lifted, it has not recorded any falls yet.
Most educational institutions still teach through Zoom and have decided to point to robust the demand for the app through the rest of the year.
In the fiscal first quarter, revenue increased by about 170% to $328.2 million. On average, Analysts expected $203 million, per the data compiled by Bloomberg.
Profit, excluding some items, was 20 cents a share, compared with analysts’ projection of 9 cents. Shares were little changed in extended trading after closing at a $208.08 in New York. The stock has over tripled this year.
At the end of the first quarter, the company said it had about 265,400 customers with more than 10 employees depicting a fourfold increase from last year.
Furthermore, the company now has 769 corporate clients that have spent over $100,000 on Zoom’s products over the last 12 months which is almost double in the previous year.
Not long ago, the app acquired Keybase, an encryption platform to tackle its problem of the popular “Zoombombing” and has recently made available the updated version of the app.
Zoom was founded by Eric Yuan while the software was launched in 2013.