Zoom has witnessed a 169 per cent growth in revenue in the first fiscal quarter of 2020 owing to a massive surge in usage amid the Covid-19 pandemic.
The company had released its quarterly earnings report on Tuesday.
According to the report, Zoom’s revenue in the first quarter amounted to $328.2 million, with a 169 per cent year-over-year (YoY) growth.
The increase in revenue is due to a massive surge in usage as more people are turning towards the platform after being mandated to stay and work from home amid the global Covid-19 pandemic.
“The COVID-19 crisis has driven higher demand for distributed, face-to-face interactions and collaboration using Zoom. Use cases have grown rapidly as people integrated Zoom into their work, learning, and personal lives,” said Eric S Yuan, Founder and Chief Executive Officer of Zoom.
User base growth
The company has registered a 90 per cent growth in users contributing more than $100,000 in TTM revenue. It had also registered 265,400 customers with more than 10 employees opting for its platform, the number up by 354 per cent as compared to last year.
Furthermore, a tool initially built as an enterprise product also witnessed a growth in the education sector. Over 100,000 schools across the globe are now using Zoom for online classes, the company said. Overall, Zoom now over 300 million daily meeting participants up from 10 million in December.
It hasn’t all been smooth sailing for the company that had been under the scanner earlier this year over security and data privacy issues. Yuan had then announced that the copay will be dedicating all its resources to improve security on its platform. Zoom also recently published a draft of its end-to-end encryption that it aims to implement on the platform.
Zoom had predicted revenue of approximately $500 million for its current quarter ending in July. The company has forecast its annual revenue to be $1.8 billion nearly triple from last year.
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