Zoom revenue surges 326% on virtual meetings trend

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Extraordinary intercessional virtual summit of the Organisation of African Caribbean and Pacific States (OACPS) held on 3 June, 2020.
  • Full fiscal year total revenue of US$2.65bn to end – January 2021
  • CEO Eric Yuan called the past 12 months an “unprecedented year for Zoom”
  • The company expects a 42 percent growth in revenue for the next fiscal year

The novel coronavirus (COVID-19) pandemic has reshaped the way people live, shop, and do business. For some companies, the pandemic has been bad news, but others have actually seen a boost.  Tech-focused companies are among the biggest gainers especially those that complement “Working from Home” (WFH).

As governments across the globe implemented lockdown restrictions, a reasonable and safe approach to curb the spread of the virus, companies had to adopt new ways of doing business to ensure survival, and precisely as Zoom founder and CEO, Eric Yuan said last year, something had to change.

Revenues for the video conferencing app surged 326 percent year-on-year to US$2.65 billion, while also scaling up 369 percent to $883 million for the fourth quarter as companies, as well as families, turned to virtual meetings during the pandemic.

Yuan called the past 12 months an “unprecedented year for Zoom”.

“We significantly scaled our business to provide critical communications and collaboration services to our customers and the global community in response to the pandemic.

“As we enter FY2022, we believe we are well positioned for strong growth with our innovative video communications platform, on which our customers can build, run, and grow their businesses; our globally recognised brand; and a team ever focused on delivering happiness to our customers.”

The company expects a 42 percent growth in revenue for the next fiscal year as working from home and hybrid models are likely to remain post-pandemic.

By the end of January 2021, Zoom had about 467,100 customers with more than 10 employees, up nearly 470 percent from a year ago.

Before the pandemic, Zoom was relatively an unknown app but it had since grown to become one of the most popular tech solutions such that even families have used it to conduct funeral services. In Zimbabwe, the maximum number of people at a funeral was set to a maximum of 30 as one of the regulations to curb the spread of COVID-19.

Zoom is not alone. Other tech driven platforms like Microsoft, Teamviewer and online gaming have all seen a surge in demand.

Equity Axis News

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