Zoom Stock Shoots Up To Record High After Q2 Revenue Rises 355%

Zoom

Zoom Video Communications, one of the few U.S. companies to see its business skyrocket during COVID-19, posted a dizzying set of financial results for its fiscal second quarter Monday.

Revenue jumped to $663.5 million in the period ending July 31, up 355% from the same stretch in 2019. One key metric — the number of Zoom customers with at least 10 employees — exploded to about 370,200 in the quarter, up 458% year-over-year.

The blockbuster earnings report lifted Zoom shares to a new record. They closed at $325.10, up almost 9%, gaining another 9% in after-hours trading.

The months of May, June and July were a time when much of the country battled surging COVID-19 infection rates. Even regions like New York and New England that had a more upbeat pandemic trend over the summer saw large swaths of workers at companies, government offices, schools and other places relying on Zoom for remote access.

Founder and CEO Eric Yuan said the company’s revenue forecast for all of fiscal 2021 has been upped to a shade less than $2.4 billion, which would be a nearly four-fold improvement over 2020.

“Organizations 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,” Yuan said in the company’s earnings release. “At Zoom, we strive to deliver a world-class, frictionless, and secure communication experience for our customers across locations, devices, and use cases.”

Although Zoom has prospered during the pandemic, it hasn’t always held up perfectly under the increased strain on its system. A week ago, it had an outage lasting several hours, idling millions of workers, students, teachers and public servants who use its platforms daily. The company did not offer a full account of the disruption, saying only that it involved account verification and customer log-ins.

This article was printed from https://deadline.com/2020/08/zoom-stock-shoots-up-to-record-high-after-q2-revenue-rises-355-1203027855/