Shares in Zoom Video Communications gained some 9% on Monday (31 Aug) – to be almost 400% up so far this year – after the company at the centre of a pandemic-induced global explosion in video conferencing raised its annual revenue forecast by more than 30%.
The company, which has become a household name around the world due to the lockdown, thrashed analysts’ quarterly estimates on Monday with second quarter revenues up 355% to $663.5m (against a forecast $500m). The company’s earnings per share of 92 cents was also twice what analysts had predicted while shareholder income jumped to $185.7m (63 cents per share) from just $5.5m (2 cents per share), a year ago.
Zoom is working to convert its ocean of free users – which carry a cost for the business – into paying customers. Its success so far enabled it to raise its annual revenue target for fiscal year 2021 to a range of $2.37bn to $2.39bn, from up to $1.8bn previously.
Meanwhile, Zoom’s infrastructure suffered some outages last week as schools in many parts of the US resumed with virtual classes.