Zoom, one of the biggest video conferencing companies in the world, recently announced it’s second quarter earnings for 2020. Revenues increased by an incredible 355% to £496.3 or $663.5 million for the months ending on the 31st of July. Profits also soared to an incredible $186 million, while the customer base grew by 458%.
Zoom’s sensational second quarter no doubt has something to do with the increase in demand for video conferencing since the COVID-19 pandemic. As remote working continues to thrive, countless organisations are turning to Zoom for a quick and easy way to stay connected. Notably, it’s not just small organisations that are reliant on Zoom today either. According to the report, the number of organisations with more than 10 employees using Zoom also increased by 354%.
Zoom says that it’s large customers, those generating more than $100,000 a year also doubled during the most recent quarter.
Zoom is Bigger Than Ever
Just like rivals Cisco Webex and Microsoft Teams, Zoom is benefiting from a sudden transition into the digital world for communication and collaboration.
Wherever you look, businesses are switching to video conferencing to keep employees engaged, productive, and connected. Zoom’s presence in the Americas grew by 288% this quarter, while the company’s EMEA and APAC revenues increased to 629% year over year.
According to the CEO of Zoom, Eric Yuan, organisations are rapidly making the shift to a future of anywhere learning, working, and connecting. Zoom strives to provide a frictionless and convenient experience for secure communications. The ability of the company to connect people around the world enabled Zoom to increase its revenue outlook to $2.39 billion for FY21.
Some of the other biggest insights from the second quarter statement include:
- GAAP income: $188.1 million (compared to $2.3 million in the previous year)
- Non-GAAP income: $277 million (compared to $20.7 million in the previous year)
- Net income: $185.7 million
- Cash flow: Net cash – $401.3 million compared to $41.2 million for the previous year
Zoom is also benefiting from a trailing 12-month expansion rate in the number of customers with more than 10 employees for the 9th quarter in a row.
Looking Forward to a Bright Future
With so many incredible figures to report for this quarter, Zoom’s financial outlook is bright. The company represents a total revenue of between $685 and $690 million for the third quarter of this year. For the full fiscal year of 2021, the total revenue might hit anywhere between $2.27 and $2.39 billion. This revenue estimation considers the ongoing demand for remote work solutions in the current business landscape.
Zoom has a lot of potential continue transforming the marketplace for work communications. However, it will need to ensure that it can handle the influx in new users. Over the last few months, the company has had a few issues with outages, strained infrastructure, and even security issues. The company is now working harder than ever to support the growing need for video conferencing in a work anywhere environment. If it can continue to deliver results, there’s no limit to what this business can accomplish.
