Video call provider Zoom has announced its financial results for the second quarter. It is a company whose effects of coronavirus have literally contributed to a dream growth in profit.
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The company said it increased year-on-year from 5.5 million to almost $ 186 million (CZK 4.1 billion). Sales increased by 355 percent, so both numbers exceeded analysts’ estimates. Thanks to the fact that it manages to convert free user accounts to paid ones, it has increased this year’s revenue estimate by more than 30 percent.
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Revenue climbed to $ 663.5 million (CZK 14.5 billion) in the second quarter from $ 146 million in the same period last year.
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Video conferencing services, which were once used mainly as a technological replacement for face-to-face meetings, have become an important part of everyday life this year. However, Zoom’s fears that a sharp increase could mean a drop in profits due to higher infrastructure costs have not been confirmed.
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In the current quarter, Zoom expects revenues of between $ 685 million and $ 690 million, and estimates it at nearly $ 2.4 billion for the full year. This is despite the fact that it assumes that the massive influx of new users has passed and that it could lose some of those who started buying a monthly subscription in the first quarter.
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Basic Zoom services are available free of charge. Businesses usually use different forms of subscription because they need additional paid features. Zoom currently has 370,000 paying customers, 304,000 more than in the same period last year. There were 105,000 more in the last quarter.
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Larger companies typically opt for an annual subscription, while private individuals and smaller companies with less than ten employees prefer a monthly subscription, the DPA agency said.
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The price of Zoom shares has almost quadrupled this year. After Monday’s announcement of economic results, the shares rose to a record and added another 23 percent in electronic trading after the stock exchange closed. The company is worth more than $ 110 billion.
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Just hours after the second quarter was released, shares rose 26 percent to $ 410 a piece, according to Bloomberg, to $ 4.2 billion, according to Bloomberg.
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And if explosive growth continues, Yuan could raise up to $ 20 billion if sold.
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This is one of the most successful periods in the world of technology. After all, the richest man on the planet, Jeff Bezos, received $ 13 billion in just one successful July day. Visionary Elon Musk, Tesla’s boss, again increased the value of his stake in the carmaker by $ 8 billion in a single day last month.
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The success is also evidenced by the results of the US stock exchange and stock indices, including the technology NASDAQ, which has broken its historical records in recent weeks.
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