Zoom’s shares hit an all-time high on Monday as the company reported explosive profits for the second quarter of 2020.
The video conferencing platform has seen explosive growth in 2020, fueled by the increase in remote working during the Covid-19 pandemic. He’s made as much money in the past three months as in all of 2019, beating analysts’ already optimistic predictions.
The company reported adjusted earnings of $ 0.92 per share, above the expected $ 0.45 per share. Revenue rose 355% from the same period last year to $ 663.5 million, above analysts’ average estimate of $ 500.5 million.
Zoom saw an increase in the number of paying customers this quarter, the report said, with around 370,200 customers of businesses with more than 10 employees, up about 458% from the same quarter last year.
The company’s shares, which have nearly quadrupled this year, rose 9% after the bell and hit an all-time high in regular trading.
Zoom has seen a massive increase in user numbers as countries around the world institute lockdowns to slow the spread of Covid-19. It has become almost synonymous with the concept of video hangouts, used for occasional happy hours, teaching in schools and events.
But immediately after its growing popularity, the app also faced strong criticism over privacy and security practices, which prompted some companies and institutions to pull out.
Since then, the company has released a number of updates to improve security. However, it continues to face problems with “zoom bombing,” a practice in which pranksters terrorize people at Zoom events with racist language and other hate speech.
In light of Monday’s terrific report, Zoom raised its annual revenue target for fiscal 2021 to $ 2.37 billion and $ 2.39 billion from $ 1.78 billion to $ 1.80 billion more early.