Zoom revenue quadruples during COVID pandemic

Zoom saw sales more than quadruple in its last quarter as uptake rocketed throughout the COVID-19 pandemic.

Revenue shot up 355 per cent year on year to $663.5m for the three months ending 31 July 2020, while net profit stood at $185.7m.

On an earnings call, Zoom CEO Eric Yuan said: "As remote work trends have accelerated during the pandemic, organisations have moved beyond addressing immediate business continuity needs to actively redefine and embracing new approaches to support a future of working anywhere, learning anywhere, and connecting anywhere.

"We continued to see meaningful adoption of Zoom's video-first unified communication platform across industries and geographies."

Zoom said that the number of customers with over 10 employees grew 458 per cent in the quarter, with 988 customers now contributing the equivalent of $100,000 in revenue annually.

It added that it expects revenue for the full year to be more than double that of the previous 12-month period.

The vendor's share price rose to eight per cent after the results were published, taking it to an all-time high valuation of over $90bn.

Yuan said that the pandemic has been a "wake-up call" for businesses in terms of their migration away from legacy PBX systems.

"I think applied to this pandemic crisis… a very high percentage of customers [are] still deployed with the traditional on-prem legacy, costly PBX systems," he said.

"I think in the next 12 to 18 months, I would say, you will see a little bit higher acceleration rate for enterprise customers to migrate to unified collaboration and communication solutions such as Zoom."

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