Zoom sales race ahead despite workplaces reopening
Written by Fred on June 2, 2021
Zoom sales have more than doubled after a “very strong” start to the year as the Covid-19 pandemic continued.
The video calls platform has had a boom in users during the crisis as many employees work from home.
Its profits also reached more than $227m (£160m), up from about $27m in the first quarter of 2020.
But analysts previously said the firm could face a battle to remain relevant as more people get vaccinated and social distancing restrictions ease.
Zoom said that in the three months to 30 April, its revenues rose to $956m from $328m the same period a year earlier.
It also upgraded its expectations for the full financial year on Tuesday.
Annual revenues are now set to reach up to $3.99bn, up from its previous estimate of up to $3.76bn.
The pandemic, which prompted an abrupt shift to remote work for many businesses around the world, transformed Zoom into a household name practically overnight.
“Work is no longer a place”, the firm’s founder Eric Yuan said in a statement on Tuesday.
“We are energised to help lead the evolution to hybrid work that allows greater flexibility, productivity, and happiness to both in-person and virtual connections.”
The company also reported a jump in the number of users who pay for its services. In the first quarter, businesses with more than 10 employees totalled about 497,000, up 87% from 2020.
But the firm has had to spend more as the number of users signing up for free events surged and it sought to recruit more staff due to demand.
And in a bid to stay relevant as offices reopen, it is set to launch Zoom Events, aimed at business hosting events that mix online and in-person elements.
Its shares fell sharply in after-hours trade in New York, before recovering some ground.
(SOURCE : BBC)