Zoom Video Communications is rapidly emerging as the latest internet gold mine as millions of people flock to its conferencing service to see colleagues, friends and family while tethered to their homes during the pandemic.
Tuesday's release of the once-obscure company's financial results for the February-April period provided a window into the astronomical growth that has turned it into a Wall Street star.
Zoom's revenue for its fiscal first-quarter more than doubled from the same time last year to $328 million, resulting in a profit of $27 million — up from just $198,000 a year ago.
The numbers exceeded analysts’ already heightened expectations, providing another lift to a rocketing stock that has more than tripled in price so far this year. After a big run-up leading up to Tuesday's highly anticipated announcement, Zoom's stock gained nearly 3% in extended trading to $213.60 — more than five times the company's initial public offering price of $36 less than 14 months ago.
The surge has left Zoom with a market value of about $59 billion, greater than the combined market values of the four largest U.S. airlines, which have seen their businesses hammered by the coronavirus outbreak that has dramatically curtailed travel.
“We were humbled by the accelerated adoption of the Zoom platform around the globe,” said CEO Eric Yuan, who co-founded the company nine years ago.
In a sign that its growth isn't expected to be short-lived, Zoom forecast revenue of roughly $500 million for its current quarter ending in July, more than quadrupling from the same time last year. For its full fiscal year, Zoom now expects revenue of about $1.8 billion, nearly tripling in a year.
Several government organisations and companies have expressed concerns over security concerns on the app and have opted not to use it.
The company has made some efforts to upgrade its security features.
Associated Press (AP)
