Zoom reported a blowout quarter on Tuesday after the video conferencing tool saw a massive increase in usage during the coronavirus pandemic.
The California-based company announced this week that Zoom in the February-April quarter – when virus-related locks caused companies, schools, friends, and family members to communicate from home – brought in a whopping $ 328 million, more than that Double that for the same period last year when $ 122 million was generated. The profit was $ 27 million.
While the online communication tool has a free tier for basic usage, Zoom earns most of its money from companies that start paying $ 15 a month for more features and support.
The latest financial data shows that Zoom now has around 265,000 customers with more than 10 employees, an increase of a whopping 354% over the previous year. The company announced that it has added more than 100,000 K-12 schools worldwide as more children take online classes during school closures caused by the pandemic.
Zoom does not report the total number of people using its software, although 300 million daily meeting participants were reached in April, compared to only 10 million in December 2019. A meeting participant is counted as a member of a meeting. Therefore, a single daily active user is counted as a meeting participant multiple times if he or she attends more than one session in a day.
Zoom's founder and CEO Eric Yuan said his team felt "humiliated by the accelerated introduction of the Zoom platform around the world." and added: "Use cases have grown rapidly because people have integrated Zoom into their work, learning and personal life."
Not all smooth sailing
However, the sudden increase in users earlier this year threatened to overwhelm the Zoom team as it faced a number of issues that caused some people to quit the software and look for other video chat platforms.
They contained complaints about poor security protection, with some users experiencing "zoom bombing" incidents where jokes interrupted meetings with inappropriate material. Yuan said in April that, unlike its established community of business and corporate customers, many newcomers to Zoom did not have adequate IT support and therefore did not set up the software properly. He admitted that they should have done more to help new users, and the company has since updated the software to provide additional protection from the start.
Zoom expects even better financial results for the next quarter with sales of around $ 500 million. One of the challenges is to keep paying users when the pandemic subsides and people return to the office. However, Zoom hopes that working from home will be the new normal for many.
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