Popular videoconferencing app Zoom has seen its revenues skyrocket as second quarter profits more than doubled due to the coronavirus crisis.
Revenues leaped 355% to $663.5m (£496.3m) for the three months ending 31 July, beating analysts’ expectations of $500.5m.
The US-based video conferencing platform has thrived during the pandemic as lockdowns meant office, school, court hearings and social gatherings were forced online.
The company also lifted its revenue outlook for the full year to just under $2.4bn, up from $1.8bn forecast in June, as it sees firms adopting video meeting technology in the longer term – not just as temporary measure.Zoom had previously warned that it might suffer a wave of cancellations during the second half of the year if efforts to contain the coronavirus allowed more workers to return to offices.
But continued worries about fresh spikes in case numbers mean many companies are holding off full reopenings until the end of the year and possibly into well into 2021.
Zoom boss Eric Yuan said: “Organisations 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.”
Rise in corporate customers
By the end of July, Zoom had about 370,000 corporate customers with more than 10 employees, up nearly 460% from a year ago. Its biggest paying customers — those that pay more than $100,000 a year for the service — more than doubled to 988 compared with the same quarter a year ago.
On the earnings call, Yuan said that ExxonMobil had become a Zoom customer in the quarter.
By geography, combined revenues from Asia Pacific and Europe, the Middle East and Africa, soared more than 600% to account for one third of the total.Revenue from the Americas increased by nearly 300%.
“We will continue to invest in international expansion to capitalize on our brand awareness and the increased global opportunity,” Yuan said.
The videoconferencing company announced in July that it will triple its existing workforce in India’s financial capital, Mumbai, while also establishing new data centers in the tech hubs of Bangalore and Hyderabad.
Key Zoom customer stats:
Drivers of total revenue include acquiring new customers and expanding across existing customers. At the end of the second quarter of fiscal year 2021, Zoom had:
- Approximately 370,200 customers with more than 10 employees, up approximately 458% from the same quarter last fiscal year.
- 988 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 112% from the same quarter last fiscal year.
- A trailing 12-month net dollar expansion rate in customers with more than 10 employees above 130% for the 9th consecutive quarter.