Zoom Reports Stellar Earnings for Fiscal Q1

While Zoom's revenue increased sharply its costs rose even more steeply

While Zoom's revenue increased sharply its costs rose even more steeply

Sales for the full year, it said, are likely to be roughly $1.78 billion to $1.8 billion, reflecting demand for remote work.

Zoom CEO confirmed that they want to be friendly with local law enforcement agencies in order to prevent misuse of the platform.

The video-conferencing company posted revenue of $328.2 million in the period, also surpassing Street forecasts. The company's gross margin in the first quarter was 69.4%, down from 84.2% last quarter, as it ramped up cloud-related expenses to keep up with the usage surge. In March this year, the company had forecast revenues to be in the range of Dollars 905.0 million and USD 915.0 million for the full year. Zoom's "intuitive technology and strong brand recognition should help the company pick up market share in video conferencing, outpacing the industry".

While big companies like Google and governments, including India's, have advised against using Zoom for official purposes, the company has continued to grow during the pandemic.

Zoom is also forecasting full-year adjusted earnings of US$1.21-US$1.29 per share, up from its previous guidance of US$0.42-US$0.45.

Zoom's stock was down 1.5% in after-hours trading, though it has gained more than 200% since the beginning of the year.

Revenues surged 169 per cent to $US328 million for the quarter.

Zoom’s paid usage skyrockets as remote work takes over
Zoom growth explodes in coronavirus work world

Zoom has just revealed its revenue stats and growth numbers in the April quarter of this year and thanks to the covid-19 pandemic lockdown, the company's income has soared by more than double.

Zoom's shares rose 0.9% to US$210 in pre-market trading in NY on Wednesday. In its most recent quarter that number slipped to around 68%.

Zoom's founder, Eric Yuan, who owns 20% of the corporate, is estimated to be the world's 146th richest individual and value $10.8bn, in line with the Bloomberg Billionaires Index. End-to-end encryption will arrive for subscribers, but not free users, because of Zoom's intentions to co-operate with law enforcement agencies. Chief Financial Officer Kelly Steckelberg said that daily meeting participants peaked at 300 million in April, but the number slightly declined in May.

When it comes to its growth rate, video conference company Zoom has lived up to its name.

The technology is created to prevent government spies, law enforcement, and even Zoom from decrypting your video call traffic on the platform.

Work-from-Home and social distance initiatives have meaningfully accelerated the adoption and traffic on the Zoom video communications platform, Mr. Yuan said, adding that the company has seen many use cases, not only from enterprises to maintain work productivity as part of business continuity plans, but also from first-time consumer users for personal and social use to connect with friends and families when physical gathering is not possible.

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