Zoom boom: 'King of Quarantine Economy' records a whopping 355 pc revenue growth in Q2
Zoom beat analyst estimates to record a second-quarter revenue of $663.5 million, up a whopping 355 percent year-over-year.
Zoom beat analyst estimates to record second-quarter revenues of $663.5 million, up a whopping 355 percent over last year. Shortly after the earnings announcement, company stock soared 23 percent, even topping $400 per share for a bit.
With this, Zoom has also increased its revenue outlook for FY21 to $2.39 billion, or a 284 percent increase year-over-year, as it continues to be the most happening tech company of the pandemic.
NASDAQ-listed Zoom's net income for the quarter stood at $185.7 million. The number of customers contributing more than $100,000 in trailing twelve month (TTM) revenues also went up 112 percent year-over-year.
Zoom's blockbuster performance was cheered by top Indian entrepreneurs too.
Zoom Founder and CEO Eric Yuan said in a statement,
"Organisations are shifting from addressing their immediate business continuity needs to supporting a future of working anywhere, learning anywhere, and connecting anywhere on Zoom's video-first platform. Our ability to keep people around the world connected, coupled with our strong execution, led to revenue growth."
"At Zoom, we strive to deliver a world-class, frictionless, and secure communication experience for our customers across locations, devices, and use cases," he added.
Zoom Founder Eric Yuan
At the end of the second quarter, Zoom's video conferencing platform had about 370,200 customers with more than 10 employees, up 458 percent from Q2 last year.
Kelly Steckelberg, CFO, Zoom, stated on the earnings call,
"For the quarter, the year-over-year growth in revenue was primarily due to subscriptions provided to new customers, which accounted for approximately 81 percent of the increase, while subscriptions provided to existing customers accounted for approximately 19 percent of the increase. This demand was broad-based across industry verticals, geographies, and customer cohorts."
Zoom's growth in the pandemic has also been well-documented. Daily meeting participants on the platform went from 10 million to 300 million in four months.
In a recent interaction with TiE Delhi, Founder Eric had revealed that India is Zoom's second-largest market after the US. He also said that a significant chunk of the platform's new user growth is now coming from global markets.
"Earlier, we were focussed on businesses. The pandemic completely changed our user base dynamics. We are doing all we can to learn about the new use cases, and taking actions more quickly now," Eric stated.
Edited by Megha Reddy