San Jose’s Zoom rides over pandemic to propel another quarter of explosive growth

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San Jose’s Zoom rides over pandemic to propel another quarter of explosive growth

Zoom Video Communication Inc., the San Jose, CA-headquartered video conferencing service provider employing over 2,500 workers to date, had reported late on Monday that its revenues in videotelephony and online chat services had nearly quadrupled to $663.5 million during the quarter that ended on July 31, buoyed by a stubborn rise in paid subscriptions as tens of thousands of businesses and educational institutions had turned into its paid consumers in order to receive more control over their virtual meets amid a pandemic induced closure across the globe.

In tandem, as the San Jose-based video conferencing service provider has been deepening its roots in the new-normal pandemic era, according to the company’s quarterly report released late on Monday, the peer-to-peer software platform’s revenues rose to $663.5 million, roughly 300% up compared to the same time a year earlier.

Besides, Zoom Video Communications Inc. had wrapped up its fiscal second quarter of the year that ended on July 31 with at least 370,000 paid subscribers, remarking a robust upswing from the end of April while the online chat and video conferencing service provider had reported 105,000 in paid customers.

Just a year earlier, the 8-year-old start-up had only 66,300 paid customers.

Zoom quarterly revenues insanely beat Wall St.

estimates; shares’ skyrocket

Meanwhile, as tens of thousands of employees working from home had been pouring heavy money into the video conferencing service provider amid forced lockdown measures in several parts of the world, Zoom’s net income rose to 66 cents per share or $186 million during May to July quarter of the year, up from only $5.5 million on a year-on-year basis, eventually leading to a meteoritic rise in the shares’ prices of Nasdaq-listed Zoom by 40.78 per cent on Tuesday to $457.69.

Apart from that, referring to a transforming pandemic-era working principle that led to an exuberant response from the investors who have been latching on Zoom since the onset of the pandemic, Zoom Chief Executive Eric Yuan said in a post-earnings conference call with the reporters, “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”.