Why the Zoom’s revenue boom?
Zoom’s revenues quadruple, soaring to $663.5 million in the quarter ended July 31.
Zoom benefited from the the coronavirus pandemic outbreak, prompting a surge in use of video-conferencing software.
At the peak of the lockdown in some countries, Zoom saw a massive number of usage. People started to use it for work meetings, education and keeping in touch with friends and family.
The company made as much money in the past three months as it did in the entirety of 2019, reports say.
SHARE PRICE SOARS
Zoom’s share price soared 23 per cent in after-hours trading on Monday. It reached a record high of $325.10.
It leaves Zoom closing in on a valuation of $100 billion which is more than corporate giants such as General Motors and Ford. Zoom added $37.4 billion to its valuation in a single day.
New customers’ subscriptions accounted for 81% of the second-quarter revenue growth and there was less customer churn than expected.
Zoom CFO Kelly Steckelberg
Experts say Zoom is catering to both consumer and enterprise customers. It is providing a simple to use video solution and these are just a couple of reasons why Zoom has pulled ahead of competitors.
Small businesses and individuals adopted and maintained their Zoom licenses for various uses during the pandemic.
Besides being pro-consumer, that is not making much differentiation between corporations or families, being a free to use service, offering a simple to use video, Zoom also responds quickly to queries and communicates regularly with stakeholders, giving it a different dimension.
But it is also its success in product placement that has caused the Zoom revenue boom!
An expert says he sees Zoom a lot on television screens and on the internet.
Zoom CFO Kelly Steckelberg says new customers’ subscriptions accounted for 81% of the second-quarter revenue growth and there was less customer churn than expected.
She says the company “continued to benefit from significant growth in our customer segment with 10 or fewer employees, as small businesses and individuals adopted and maintained their Zoom licenses for various uses during the pandemic.”