Zoom’s revenues skyrocket as profits double

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The popular Zoom video conferencing app saw its revenue skyrocket as second-quarter profits more than doubled due to the coronavirus crisis.

Revenue jumped 355% to $ 663.5million (£ 496.3million) for the three months ending July 31, beating analysts’ expectations by $ 500.5million.

Profits soared to $ 186 million, while customer growth increased 458% from the same period in 2019.

Video conferencing applications remain crucial due to the increase in remote work.

Zoom’s shares hit an all-time high on Monday, closing at $ 325.10, as the company raised its annual revenue forecast by more than 30% to $ 2.37 billion – $ 2.39 billion, per compared to its previous projection of $ 1.78 billion to $ 1.80 billion.

The key to Zoom’s success was its ability to add paying customers – big budget businesses – as opposed to those who use its services for free.

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The company said its major customers – businesses that generated more than $ 100,000 in revenue in the past year – doubled to 988 in the quarter.

Zoom, along with rivals Cisco Webex and Microsoft Teams, have all seen an increase in the use of their video conferencing platforms since coronavirus lockdowns were imposed by several countries in March.

But Zoom’s growing popularity has also put a strain on its infrastructure, with some outages last week as schools in many parts of the United States virtually resumed classes.

Its reputation also took a hit, as the new attention tricked hackers into hijacking meetings and exposed a host of security holes, revealing the company had sent user data to Facebook, falsely claimed that the The app had end-to-end encryption, and was allowing meeting hosts to track participants.

Zoom has also faced political scrutiny for its ties to China – where it employs more than 700 people, including most of its product development team – which prompted warnings it was unfit. to be used by the government.

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