Zoom Records $328M Revenue As Adoption Soars By 354% Year-On-Year

  • First-quarter total revenue of $328.2 million, up 169% year-over-year
  • Approximately 265,400 customers with more than 10 employees, up 354% year-over-year
  • Zoom has also been active in telehealth, as it offers features that allow doctors and specialists to connect with patients.

Video conferencing platform Zoom reported making $328 million in revenue in its recently released financial results for February–April quarter as it revealed the financial impact of the COVID-19 lockdown on its business.

The revenue generated is far more than double from the same time last year, when it made $122 million, exceeding the $200 million expected return Yahoo Finance predicted.

This is mainly because of the accelerated adoption of the Zoom platform around the globe as COVID-19 kept many workers at home and working remotely. Zoom now has around 265,400 customers with more than 10 employees, a number that’s grown 354 per cent, the company says, and it added 175,000 licenses for new customers.

Zoom attributed the revenue growth to its roughly 265,400 customers, representing a 354% year-over-year increase. It has also been active in telehealth, as Zoom offers features that allow doctors and specialists to connect with patients, medical device integrations, and recorded session reviews.

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“The Covid-19 crisis has driven higher demand for distributed, face-to-face interactions and collaboration using Zoom,” Eric S. Yuan, the founder and chief executive officer of Zoom, said in a statement Tuesday.

He added, “Use cases have grown rapidly as people integrated Zoom into their work, learning, and personal lives.”

Eric S. Yuan – Founder and CEO of Zoom

Eric Yuan also suggested the company has no plans to start building out a consumer-specific product beyond the free calling experience it already offers. Zoom should have the “same experience” however you’re using it, Yuan said on the investor call. “Our strategy is to offer one service no matter what you do, no matter which device.”

For now, Zoom’s top priority is just to keep its servers up, Yuan said, “because so many people are counting on Zoom to stay connected.”

Zoom’s stock has tripled in value over the last several months, surging to around $200 before earnings today, up from around $68 at the beginning of the year. The company went public in April 2019 for $36 per share.

Zoom expects the good times to continue through the year, almost doubling its revenue guidance this fiscal year from $910 million to $1.79 billion.

 

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