Lockdown policies across the globe have spurred many of us to interact virtually – relying on screens to communicate with those beyond our own household perimeters. Indeed, for all its advantages – and its more comedic moments (unusual backdrops and misbehaving pets among them) – video-conferencing has become a mainstay of the ‘new normal'. Zoom (US:ZM) has been central to that movement.
It follows that revenues for the video platform more than doubled to $328m (£259m) for the first financial quarter to April – dwarfing analysts’ expectations of $200m. For the same period, the group counted 265,400 customers that had more than 10 employees – up by 354 per cent. Operating profits also soared from $1.6m to $23.4m.
Founder and chief executive Eric S Yuan noted that “use cases have grown rapidly as people integrated Zoom into their work, learning, and personal lives”. Zoom expects full-year sales to land between $1.78bn and $1.8bn – up from $623m in 2020.
Still, the group has had to address security concerns in recent weeks. It also faces competition from the likes of Microsoft (US:MSFT) and Google (US:GOOGL), which could intensify if home-working practices sustain. What's more, the easing of lockdown restrictions may test the loyalty of customers who have opted for paid-for subscriptions rather than Zoom’s free products.
