Zoom raises annual revenue target on remote work boost

Zoom will benefit from permanent change in business travel: SteelHouse CEO

SteelHouse CEO Mark Douglas argues as leisure travel returns to normal, business travel may never return to post-coronavirus levels.

Zoom Video Communications Inc raised its annual revenue forecast by 30% after comfortably beating quarterly estimates on Monday, as it converts more of its huge free user base to paid subscriptions.

Continue Reading Below

IS ZOOM SAFE?

Shares of the company, which have surged almost four-fold this year, rose 5% after the bell. They hit a record high in regular trading.

Video-conferencing platforms, once used mostly as a technological substitute for in-person meetings, became a vital part of day-to-day life this year for people stuck at home under coronavirus restrictions, be it for work, school or socializing.

ZOOM GROWTH EXPLODES IN CORONAVIRUS WORK WORLD 

Zoom, however, has come under fire for its security and privacy shortfalls, prompting many companies and countries to curb the use of the platform.

The company said revenue rose 355% to $663.5 million, above analysts' average estimate of $500.5 million.

Zoom said it now has 370,200 institutional customers with more than 10 employees, up about 458% from the same quarter last year.

The company, founded and headed by former Cisco manager Eric Yuan, raised its annual revenue target for fiscal year 2021 to the range of $2.37 billion and $2.39 billion, from $1.78 billion to $1.80 billion earlier.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Net income attributable to common stockholders rose to $185.7 million, or 63 cents per share, from $5.5 million, or 2 cents per share, a year earlier.

Excluding items, the company earned 92 cents per share, beating the average analyst estimate of 45 cents, according to IBES data from Refinitiv.

CLICK HERE TO READ MORE ON FOX BUSINESS

Source: Read Full Article