Zoom shares soar as earnings rocket

File: OnZoom will allow users to host and monetise events like yoga classes, concerts, comedy shows and music lessons. AFP/Olivier Douliery

SAN FRANCISCO - Zoom shares soared after the video-meeting service reported that quarterly revenue rocketed as its ranks of users more than quadrupled.

The Silicon Valley-based company that has become a popular way to work, learn or socialise during the pandemic said it made a profit of $186-million on revenue of $663.5-million in the quarter that ended on July 31.

That compares with a net income of $5.5-million in the same quarter a year earlier.

READ: Zoom earnings soar as video meets become pandemic norm

"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," founder and chief executive Eric Yuan said in an earnings release.

Zoom shares were up more than 22 percent in after-market trades that followed the release of the earnings, which beat market expectations.

Zoom reported that it ended the quarter with approximately 370,000 customers that had more than 10 employees, more than four times as many than it had in the same period a year earlier.

READ: Tired of Zoom calls? Company offers at-home hologram machines

The increase in customers built on a surge in the previous fiscal quarter, and appeared to offset investor concerns that Zoom's popularity would decline when restrictions on movements ease and people can get back to seeing one another in person.

"It is the survival of the adaptable, only Stone Age companies are insisting employees to physically come to work," Global Equities Research analyst Trip Chowdhry said in a note to investors, calling Zoom a "cultural phenomenon."

The pandemic has driven demand for virtual collaboration using the Zoom video conferencing platform, according to Yuan.

READ: Zoom vows to address privacy, safety issues after complaints​​​​​​​

The earnings come with Zoom still under pressure to deal with security and privacy.

It has taken heat over uninvited cyber guests disrupting online meetings with a tactic called "zoombombing." 

Source
AFP