Zoom, the video calls platform that became a household name during the pandemic as workplaces shifted to work-from-home overnight, has reported better-than-expected results for the first quarter of 2021, with profits for the period rising by over 800 per cent when compared to the same period in 2020.
As global vaccination efforts continue apace and the world slowly shifts back to in-person meetings, analysts believed that demand for the technology would decrease, but Zoom has countered the expectation through the introduction of new products and its ability to attract and retain large clients.
The California-based company’s main product offering is an application allowing video gatherings, which can be used free of charge for sessions lasting up to 40 minutes and including up to 100 participants.
On Tuesday, it upgraded its expectations for the full financial year, with projected annual revenues now set to reach $3.99bn, up from the previous estimate of $3.76bn.
This reflects Zoom’s first quarter results, which saw sales of $956m, higher than the expected $910m.
The company’s profits for Q1 2020 and Q1 2021 attests to its incredible rise in fortunes during the COVID-19 pandemic, with profits of $27m in the beginning of last year rising to $227m a year later.
Meanwhile, corporate clients with more than 10 employees jumped 87 per cent, rising to about 497,000, higher than previous estimates of 486,415.
Additionally, 1,999 clients contributed at least $100,000 in 12-month revenue.
In a statement, founder and CEO Eric Yuan said that, “We are energised to help lead the evolution to hybrid work that allows greater flexibility, productivity, and happiness to both in-person and virtual connections.”
Mr Yuan is betting that his company will remain relevant through a more diverse product offering, including a cloud-based phone system designed for businesses of small to large size, and the upcoming Zoom Events, for businesses hosting events that mix online and in-person elements.
Although Zoom stock increased almost fivefold in 2020, it has declined 2.8 per cent so far this year.
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