While many companies had to adapt their businesses during the pandemic, the video conference company Zoom recorded an enviable growth in the last fiscal quarter. The firm announced that its revenue has increased by 355% over the same period last year.
The company closed the three months ended in July with US $ 663.5 million in its cash. By comparison, the company’s revenue for the same period in 2019 was $ 145.8 million.
The reason for the growth was the adoption of the platform by new users with the rise of remote work. With the coronavirus bringing limitations to closed environments since March, Zoom’s digital rooms have become popular in the corporate environment.
According to the company, the platform is used by more than 370 thousand customers with more than 10 employees. The number represents an annual growth of 458% in the user base of the videoconferencing service.
Zoom’s main source of income in the second fiscal quarter of the year was paid subscriptions. New users who joined premium plans accounted for 81% of the period’s revenue. Among the new companies using the platform are Activision Blizzard and ExxonMobil.
Second quarter earnings were also buoyed by the highly positive results from the previous fiscal period. With the beginning of the pandemic, the company had an annual growth of 169% and had to make improvements in its platform to accommodate the new clientele.
Thanks to the positive numbers, the company increased its earnings projection. The company’s commander, Eric Yuan, estimates that the firm will close fiscal year 2021 with total revenue of up to $ 2.39 billion.
“I am proud of Zoom employees who dedicated themselves to supporting consumers and the global community during the crisis,” said the company’s CEO, Eric Yuan.