Zoom financial report: Video calling platform sees 355% revenue growth in second quarter; Here’s its outlook for FY21

The statement included Zoom’s outlook for the third quarter and FY21.

Zoom revenue: Video conferencing platform Zoom on Monday released its second quarter results and announced a whopping 355% increase in the revenue year-on-year. The platform recorded a total revenue of $662.5 million in the second quarter ending July 31. Zoom saw a tremendous surge in its operations due to the first mover’s advantage during the coronavirus pandemic. It pitched itself as a video conferencing solution, useful for business meetings and casual hangouts alike, much before other platforms by Google and Microsoft could jump in.

The financial report further stated that the platform has around 3.7 lakh customers with more than 10 employees. This figure, the statement said, increased 458% year-on-year. Zoom CEO and Founder Eric S Yuan said that the company’s revenue outlook for FY21 has increased to around $2.37 billion-$2.39 billion, translating to an increase of 281% to 284% year-on-year.

In the first quarter also, Zoom saw a steep increase in its revenue, going up almost 170% year-on-year to reach $328 million.

In its second quarter report, Zoom stated that 988 customers contributed over $100,000 in trailing 12 months revenue. This figure grew approximately 112% year-on-year.

The statement included Zoom’s outlook for the third quarter and FY21. For the third quarter, Zoom stated that it expected its total revenue to be recorded between $685 million and $690 million, expecting an increase of $22.5 million. Meanwhile, the statement stated that the revenue outlook for the full year FY21 took into account the demand for remote work solutions.

While the second quarter performance of Zoom has been spectacular, it is not yet clear whether it would be able to meet its revenue expectations for third quarter and FY21. Recently, the video calling platform has been facing criticism for several security issues and for misleading people to believe that the calls made on Zoom were encrypted when they were not. Several instances of Zoom video calls being hacked also came to fore, due to which several users shifted to Microsoft Teams and Google Meet.