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Summary
- Zoom reported Q2 total revenue of US$663.5 million, up 355 per cent YoY.
- Number of customers contributing more than US$100k in TTM revenue marked 112 per cent YoY uptick.
- The communication giant expects 281 to 284 per cent YoY increase in FY21 revenue.
Zoom Video Communications, Inc. (NASDAQ:ZM), a leading provider of videotelephony and online chat services, has released a remarkable financial update for the Q2 ended July 31, 2020. The communication player posted a tremendous increase in the profit, cash flow and GAAP income.
Zoom reported Q2 total revenue of US$663.5 million, up 355 per cent YoY. The communication giant expects 281 to 284 per cent YoY increase in FY21 revenue.
As most parts of the world transitioned online to promote social distancing and avoid the spread of COVID-19 virus, Zoom saw a significant boost in the market value.
Zoom founder and CEO, Eric S. Yuan said that the organizations are addressing their immediate business continuity needs to support a different digital future. Companies and individual users are increasingly accepting the new structure of working anywhere, learning anywhere, and connecting anywhere with the help of a video-first platform, Zoom.
Zoom believes that the company has strived to deliver a world-class, frictionless, and secure communication experience for its users. The company has customers of various locations, devices, and use cases across the globe.
ALSO READ: Lens Through Zoom’s Growth Story Amidst Growing Digitisation Trend
Eric S. Yuan has been among the highest-earning billionaires throughout the coronavirus pandemic like Jeff Bezos and Elon Musk.
CEO Eric Yuan stated that revenue growth of 355 per cent YoY is primarily because of the company's ability to keep people around the world connected.
RELATED READ: Zoom Video Communications is up ~2x this year, do you know why?
2QFY21 Financial Highlights
Zoom’s GAAP income from operations for the quarter was noted at US$188.1 million, compared to US$2.3 million in the Q2 FY20. At the same time, its non-GAAP income for the quarter was US$277.0 million, up from US$20.7 million in the Q2 FY20.
Total cash, marketable securities, and cash equivalents at the quarter end stood at US$1.5 billion.
Addition of new customers and expansion across existing customer base let to the growth in total revenue. At the end of the second quarter, Zoom had approximately 370,200 customers with more than ten employees, marking an increase of about 458 per cent from the same period last fiscal year.
Outlook
Zoom stands positive in its outlook for the third quarter as well for the full fiscal year 2021.
Kalkine image: source SEC filling dated August 31, 2020
The company believes that the revenue viewpoint is reported considering many businesses are increasing the demand for remote work.
Also read: COVID-19: Bigtincan’s share price with better emergence on ASX tech company space
Zoom shares performance:
Video conferencing platforms have become an essential part of day-to-day life for most of the people stuck at home because of coronavirus restrictions. This technology was once used mostly as an alternative to one-on-one meetings. Today be it for work or school or staying connected with a group of friends; Zoom is being used. Its rival platforms Microsoft Teams and Cisco's Webex have also reported increased usage by customers.
As on September 2, 2020, Zoom stock ended the trading session at US$423.56. The San Jose, California based company released results stating a rise in its annual revenue forecast. In many countries, international travel is still restricted or entirely on pause. But the domestic markets have started to reopen; it will be interesting to see the Zoom performance once the businesses get back to the pre-COVID era. Till then the Zoom and other such technology companies are undoubtedly benefiting from COVID-19 pandemic restrictions.
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