The Zoom boom continued in the second quarter as the videoconferencing company’s revenue nearly quadrupled amid soaring demand from businesses whose employees are working from home.
Zoom said revenue rose 355% to $663.5 million in the quarter ended July 31, crushing analysts’ estimates of $500.5 million. In the previous quarter, revenue rose 169% due to the surge in work-from-home and study-from-home resulting from the COVID-19 pandemic.
The company made as much money in the past three months as it did in the entirety of 2019, with one key metric — the number of Zoom customers with at least 10 employees — exploded to about 370,200, up 458% year-over-year.
Excluding items, Zoom earned 92 cents per share, well above Wall Street expectations of 45 cents per share.
“Organizations 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,” Zoom CEO Eric Yuan said in a news release.
On news of the earnings, Zoom shares jumped 22.7% to $399.02 in extended trading Monday after setting an all-time record in the regular session.
As Digital Trends reports, “As more people work from home, businesses are now heavily dependent on remote communication services to stay connected and Zoom has emerged as one of the biggest winners of the shift.”
Zoom CFO Kelly Steckelberg said new customers’ subscriptions accounted for 81% of the second-quarter revenue growth and there was less customer churn than expected. She also noted that the company “continued to benefit from significant growth in our customer segment with 10 or fewer employees, as small businesses and individuals adopted and maintained their Zoom licenses for various uses during the pandemic.”
In Q2, that segment represented 36% of revenue, up from 30% in the previous quarter.
Zoom also raised its guidance for the full year to $2.40 to $2.47 in adjusted earnings per share and $2.37 billion to $2.39 billion in revenue — up from the previous forecast of $1.21 to $1.29 in earnings on $1.78 billion to $1.80 billion in revenue.