Zoom video earnings up 169% towards more records
By Daisy Okanga | Zoom said its revenue skyrocketed 169% from the prior year to Ksh.32.8 billion for the year ending in April after adjusting for stock-based compensation and other factors.
Zoom reported earnings of 20 cents a share, up from 3 cents a share a year ago.
The revenue for its fiscal first-quarter between February and April more than doubled from the same time last year to $328m, turning a profit of Ksh.2.7 billion compared with Ksh.1.9 million in the past year.
The Teleconferencing company Zoom has seen a massive increase in profits and has doubled its annual sales forecast, driven by a surge in users as more people work from home and connect with friends online during the Coronavirus pandemic.
The pandemic-driven lockdown turned Zoom into a tool for employees who once worked alongside each other, but have been doing their jobs from home during the past few months.
Video Communications has become a household name during the pandemic, and it showed off the financial effects of its growth record sales and earnings, and expectations for more amid booming stock prices.
Reports indicated that the app’s issues, including “Zoombombing” incidents where uninvited guests crash meetings, led to several companies, schools and governments to stop using the platform.
A host of security issues emerged in early March, including controversies over the level of encryption it provides and the practice of “Zoom bombing” where trolls interrupt meetings to share profanity or pornography prompting scrutiny from US authorities.
Despite the privacy problems that enabled outsiders to make uninvited and sometimes crude appearances during other people’s video conferences zoom boom is still on.
Due to the complains and security concerns raised zoom responded by scrambling to make fixes, suspending all new features for a period of 90 days in order to focus on privacy and security measures. That 90-day period is set to conclude at the end of June.
“The COVID-19 crisis has driven higher demand for distributed, face-to-face interactions and collaboration using Zoom,” Zoom Chief Executive Eric Yuan said in a statement announcing the results. “Use cases have grown rapidly as people integrated Zoom into their work, learning, and personal lives.”
The company competes with Microsoft Teams and Cisco’s Webex and has so far launched a 90-day plan to improve the app and appointed former Facebook security chief Alex Stamos as an adviser.