Zoom’s revenue skyrocket by 169pc as Covid-19 forces workforce to work from home
Zoom on Tuesday announced its revenues went up by 169 percent to $328 million for the three months ending April, 2020 CNN Business reports.
The move follows the Covid-19 pandemic that forced people to stay home and instead opt for video conferencing services.
Business customers went up by 354 percent from the year to prior.
“Zoom deployed millions of licenses for new customers,” CEO Eric Yuan said on an earnings call.
Zoom has been in business for nearly a decade, but its popularity went up as millions of people in lockdown began using it to host events ranging from birthday parties to religious events and even to cabinet meetings.
“Work-from-home and social distance initiatives have meaningfully accelerated the adoption and traffic on the Zoom video communications platform,” Yuan said.
He added that the pandemic had also resulted in a big spike in Zoom’s number of free users, who can host calls up to 40 minutes long before being asked to pay.
The company upgraded its outlook for the next three months, forecasting revenues between $495 million and $500 million. Yuan said it continues to see “elevated levels of participants” for now, even as some lockdown restrictions are eased.
The company is however set to face serious competition from larger tech companies, including Facebook and Google who are fighting for the pie.
Global Market Insights projects that the video conferencing market is set to grow from $14 billion in 2019 to $50 billion by 2026.