Asia

Zoom profit skyrockets 3,300% on remote work trend

Zoom’s (ZM) revenue surged more than 350% in the second quarter, and profits rocketed by nearly 10 times as much, as companies signed up for the video conferencing app to connect staff working from home during the pandemic.

The California-based video communication service provider reported net profit of $185.7 million for the quarter through July 31, up nearly 3,300% compared with a year earlier. Revenues in the quarter were $663.5 million, up 355%.
Its shares hit a record high on Monday ahead of the earnings statement and then shot up by as much 28% in after-hours trading once the numbers were out.
“As remote work trends have accelerated during the pandemic, organizations have moved beyond addressing immediate business continuity needs to actively redefining and embracing new approaches to support a future of working anywhere, learning anywhere, and connecting anywhere,” Zoom CEO Eric Yuan said Monday in an earnings call.
On the back of the strong results, Zoom raised its outlook for full-year revenues to between $2.37 billion and $2.39 billion. Previously, it expected between $1.775 billion and $1.8 billion.
By the end of July, Zoom had about 370,000 corporate customers with more than 10 employees, up nearly 460% from a year ago. Its biggest paying customers — those that pay more than $100,000 a year for the service — more than doubled to 988 compared with the same quarter a year ago.
On the earnings call, Yuan said that ExxonMobil (XOM) had become a Zoom customer in the quarter.
By geography, combined revenues from Asia Pacific and Europe, the Middle East and Africa, soared more than 600% to account for one-third of the total. Revenue from the Americas increased by nearly 300%.
“We will continue to invest in international expansion to capitalize on our brand awareness and the increased global opportunity,” Yuan said.
The videoconferencing company announced in July that it will triple its existing workforce in India’s financial capital, Mumbai, while also establishing new data centers in the tech hubs of Bangalore and Hyderabad.
But the exploding popularity has also caused some strains for the platformLast month, it experienced outages in some parts of the world. It also drew questions over the shutdown of a US human rights group’s account in China after an event on the platform in remembrance of the Tiananmen Square massacre.
Source: CNN

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

Related Articles

Back to top button