The numbers in the second quarter beat Street estimates that pegged revenue at $500 million on the higher side, making it one of the biggest success stories of corporate America.
A shift to the digital in the times of COVID-19 has greatly benefited video-conferencing companies like Zoom Video Communications Inc, which reported a sharp surge in quarterly profits.
Zoom posted a massive 355 percent year-on-year (YoY) rise in Q2 FY21 revenue at $663.5 million. The quarterly top line was higher than its annual revenue of $623 million in 2019.
The second-quarter numbers beat Street estimates that pegged revenue at $500 million on the higher side, making it one of the biggest success stories of corporate America.
Zoom has become a household name as more people switch to work from home and increasingly rely on the platform for meetings, lectures, seminars and even to socialise.
According to experts, the steep rise in the top line could be the result of the company's efforts to convert its free user base to paid subscriptions, something that was necessary to cover the company’s increasing server costs.
Zoom’s customer base shot up 458 percent YoY in Q2 2020 to 37,0,200, the company said in an exchange filing. Of this, 988 large customers contributed more than $100,000 in trailing 12 months revenue, up approximately 112 percent from the corresponding period of the last fiscal.
This exceptional performance led to a 40 percent jump in Zoom's stock price. On a year-to-date basis, the stock is up over 570 percent.
The surge saw Zoom founder and chief executive officer Eric Yuan’s wealth increase by $4.2 billion in just a few hours.
With about 50 million Zoom shares, Yuan owns nearly 29 percent of the company, up from the 22 percent ownership he had when the company went public in April 2019. The Forbes Real Time Billionaires List pegs his net worth at $14.4 billion.