Zoom has become the go-to video conferencing app and has managed to hold the top position with other services like Microsoft Teams, Slack and Google Meet eyeing for a chance as well.
Zoom reports huge revenue figures in Q3, 2020.
Thanks to work from home scenes and virtual meets, Zoom reported a four times surge in its revenue in the third quarter compared to the same quarter last year. The tech major had earnings of $777.2 million. Zoom’s earnings have quadrupled two quarters in a row and it now eyes on retaining the record jump year on year with the fourth quarter’s profits.
Although Zoom has not let out how many subscribers it has in total, its measure of the paid customer continues to grow. According to a press release by the company, it has now 433,700 organizations with more than 10 employees subscribed to its video-conferencing services. Last quarter the number was 370,200. The customers who contribute more than $100,000 in revenue grew from 1,000 in the second quarter to 1,300 in the third quarter. Overall Zoom witnessed a 12-month net dollar expansion rate in customers with more than 10 employees.
The immense success of Zoom is no surprise in the pandemic era. Zoom has become the go-to video conferencing app and has managed to hold the top position with other services like Microsoft Teams, Slack and Google Meet eyeing for a chance as well. “Strong demand and execution led to revenue growth of 367% year-over-year with solid growth in non-GAAP operating income and cash flow in our third fiscal quarter,” said founder and CEO of Zoom, Eric S, Yuan.
In its financial outlook, the company expects revenue between $2,575 billion and $2.580 billion in the full financial year 2021. Although Zoom expects to report a huge revenue figure next quarter as well, higher than usual customer losses has also been witnessed before the end of the year indicating that its period of rapid growth might be over. The bigger test will be when employees start returning to office post-pandemic impacting their reliance on videoconferencing.