June 3, according tomedia reports, as its app became the most popular video conferencing service during the outbreak, Zoom’s quarterly results were impressive. The company reported revenue of $328 million for the quarter, more than double the $122 million a year earlier and well above The $200 million Zoom had expected a few months ago.
Zoom did not say how many people had used its software in the past few months, but said “the growth of free users is unprecedented”, including more than 100,000 K-12 schools. Zoom said it currently employs about 265,400 customers with more than 10 employees, a 354 percent increase and adds 175,000 licenses to new customers. The significant increase in usage was also accompanied by a significant increase in costs, with expenditure doubling to $201 million year-on-year.
It was the first time Zoom had reported earnings since the outbreak spread. With many people around the world isolated at home, the company’s video conferencing software has become a tool for corporate work meetings and contact with friends and family. Zoom has previously said the number of daily users has risen to 300m from 10m in December. Kelly Steckelberg, Zoom’s chief financial officer, said on a earnings conference call that the figure had fallen from its Peak in April, but that “in the long run, we expect it to exceed 300 million.” “
At the same time, Zoom’s security measures have come under intense scrutiny. The company has been heavily criticised for suggesting that its video chat app is completely encrypted. Features designed for ease of use have led to frequent harassment sprees such as Zoombomb in apps, and Zoom’s Mac installer was found to be using “malware-like” methods to speed up operations.
Zoom responded by setting a 90-day feature development freeze while overhauling the application of security measures. Some of the most prominent security issues have been fixed or improved, and the company is also developing other security features such as end-to-end encryption. In May, Zoom acquired Keybase, a security certification start-up, and directed its engineers to develop end-to-end encryption solutions.
These adjustments are designed to ensure that Zoom does not lose users due to security issues in the event of a rapidly expanding range of service usage. So far, Zoom seems likely to continue to be successful. Zoom expects revenue to be significant in the next quarter, more than three times its previous revenue. The company expects revenue of more than $1.8 billion this year. However, with the current large number of new users, Zoom expects customer turnover to increase in the second half of the year.
In addition to corporate customers, while more consumers are using Zoom’s services, Yuan Zheng, the company’s chief executive, says the company has no plans to launch consumer-specific products beyond the free call experience. ‘Zoom should bring “the same experience” anyway, ‘ Mr. Yuan said on a earnings conference call. “No matter what you do, no matter what device you use. Our strategy is to provide a service. “
For now, Zoom’s priority is to keep its servers up and running, Yuan said, “because a lot of people expect Zoom to stay in touch.” “
Zoom’s share price is listed at $36 a share in April 2019. In the past few months, the company’s share price has tripled, from $68 at the start of the year to about $200 on Tuesday.