Zoom Video Communications recently reported that its earnings rose as its video-conferencing service became a common way to work or socialise during the lockdown imposed by coronavirus pandemic. The company told that it made a profit of $27 million on revenue that leapt 169 per cent to slightly more than $328 million in the fiscal quarter that ended on April 30.
Zoom Makes Huge Profit as Online Conferencing Becomes a Daily Norm
In the same quarter in 2019, Zoom recorded zero dollars per share in net income for stockholders. The founder and chief executive of Zoom, Eric Yuan stated that “The Covid-19 crisis has driven higher demand for distributed, face-to-face interactions and collaboration using Zoom,”.
According to the company, the quarter finished with Zoom having more than 265,400 paying customers with at least 10 employees each an increase of 354 per cent from the first quarter in the previous year. According to the company based in the Silicon Valley city of San Jose.
Zoom shares that concluded the formal trading day up slightly gave back the increase in after-market trades, ostensibly due to concerns that its demand will decline when restrictions on movements ease and people can get back to see each other in person.
Zoom informed analysts that about half the growth in paid use was customers spending month-to-month, and those kinds of subscribers are more prone to leave than those who register to annual memberships. Rob Enderle, an independent tech analyst, told that “It’s a reminder that Zoom is seeing an unusual spike during what we hope will be a relatively short term event, Once you don’t have to socially distance as aggressively anymore, a lot of folks are going to want to go back to meeting in person”.