Zoom Video's revenue, profit skyrocket amid coronavirus pandemic

Zoom’s paid usage skyrockets as remote work takes over

Zoom growth explodes in coronavirus work world

There were roughly 265,400 companies with more than 10 employees using its platform, a 354% increase from the year prior.

Zoom on Tuesday (June 2) reported that its earnings soared as its video-meeting service became a popular way to work or socialize while hunkered down due to the pandemic.

The company's profit sky-rocketed to Dollars 27.0 million compared to USD 0.2 million in the year-ago quarter. This way, the company hopes to create space for collaboration with the Federal Bureau of Investigation and other authorities, Zoom CEO Eric Yuan said during a June 2 conference call. Zoom wants to ensure that all calls that could potentially violate the terms of service and "misuse" the platform can be easily handed over to law enforcement without needing to decrypt all those criminal video calls.

Video conferencing platform Zoom has finally added encryption making video meetings more secure. The variety of individuals attending conferences and gatherings on any sooner or later peaked at 300 million in April.

USA -head-quartered teleconferencing solution provider Zoom Video's revenue for the February-April 2020 quarter sprinted 169% to Dollars 328.2 million, driven by demand for its services amid work from home and physical distancing measures due to COVID-19 outbreak. End-to-end encryption will arrive for subscribers, but not free users, because of Zoom's intentions to co-operate with law enforcement agencies. As of Tuesday's close, the stock had tripled since the beginning of the year.

After a shaky start to Q1 where the videoconferencing service was riddled with security and privacy flaws, Zoom began to pay closer attention to patching out these issues.

Zoom has defied fears that an explosion in activity and new users would not translate to rising revenues, boasting 169% year-on-year growth in the first quarter of 2020.

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For its full fiscal year 2021, Zoom said it expects revenue to top $1.77 billion, well ahead of Wall Street's forecast of $935.2 million. Nobody says they're going to have a Webex happy hour, do they?

Yuan likely made the statement to address how his product has been a constant target of internet trolls and racists, who've been breaking into Zoom meetings to harass unsuspecting users.

"A shift in work culture triggered by the Covid-19 pandemic urges corporations to pull forward adoption of cloud-based video-conferencing tools", Boyoung Kim, an analyst at Bloomberg Intelligence, wrote Tuesday in a note.

One of Zoom's biggest costs is data centers and bandwidth to host calls.

This led to "more costs" but was crucial to meet the needs of users, said Kelly Steckelberg, Zoom's chief financial officer, in an earnings call on Tuesday.

The company, a big beneficiary of the covid-19 pandemic fallout, nearly doubled its revenue guidance for the fiscal year.

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