Zoom Video Communications has witnessed a large increase in revenue after the COVID-19 pandemic forced several countries to enforce stay-at-home orders. The reduction in social gatherings and public outings also ensured that people had to embrace video conferencing to keep in touch with friends and colleagues.
The pandemic also saw several companies adopt a work-from-home rule as more people had to depend on technology to get things done. Zoom became one of the leading beneficiaries of the pandemic.
Despite security concerns and reports of possible links to China, Zoom Video Communications has to be considered one of the biggest beneficiaries of the COVID-19 pandemic. As much of the world has been working from home and relying on technology to stay in touch with colleagues and loved ones amid strict stay-at-home orders, video conferencing apps saw an unprecedented surge in usage, with Zoom one of the most popular options available.
Eric S. Yuan, Founder and Chief Executive Officer of Zoom said earlier this year after his company had reported 169 percent revenue growth for the three months ended April 30, “The COVID-19 crisis has driven higher demand for distributed, face-to-face interactions and collaboration using Zoom. Use cases have grown rapidly as people integrated Zoom into their work, learning, and personal lives.”
The chart above shows that Zoom’s revenue skyrocketed even further in the past three months, accelerating an already impressive upward trend. In the quarter ended July 31, the second quarter of Zoom’s fiscal year 2021, total revenue for the video conferencing company amounted to $664 million, up 355 percent from the same period of last year.
Zoom expects revenue between $685 to $690 million for the ongoing quarter. According to it, “Organizations are shifting from addressing their immediate business continuity needs to supporting a future of working anywhere, learning anywhere, and connecting anywhere on Zoom’s video-first platform.”