Business

Zoom’s profits soared as video conferencing became a pandemic base

SAN FRANCISCO: The video conferencing platform Zoom on Monday announced a strong end to the fiscal year as revenue and usage soared due to the pandemic.

The quarterly earnings report came as the company expects it will grow by about 40% this year despite the potential for vaccines to make remote and school work less necessary.

Zoom video conferencing has become the center of life during the pandemic, as people use it for jobs, education and social networking.

“The fourth quarter marks a strong end to an unprecedented year for Zoom,” CEO Eric Yuan said in a earnings statement.

“We feel humbled by our role as a reliable partner and driver of the modern work environment from anywhere.”

Zoom earned $ 882.5 million in revenue for the fiscal quarter ended January 31, a 369% increase over the same period a year earlier before lifestyles got distant due to Covid-19.

Net income for the first quarter was $ 260.4 million, compared to $ 15.3 million in the same period a year earlier, according to the earnings report.

Zoom said that at the end of January it had nearly 467,100 customers with a workforce of 10+ employees, an increase of 470% over the same quarter of the previous year.

“Our ability to respond and implement quickly has resulted in strong financial results throughout the year,” said Yuan.

“We believe we are well positioned to achieve robust growth through our innovative visual communication platform.”

Zoom expects revenues of $ 900 million to $ 905 million in the current fiscal quarter, and revenues of at least $ 3.7 billion this fiscal year.

Zoom shares rose more than 8% in post-market trading that followed the earnings figures announcement.

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