The video conferencing platform continues its pandemic-fueled growth, but analysts predict a sharp decline is on the way
Video conferencing platform Zoom beat analysts’ expectations with sales up more than 191% in its first-quarter earnings.
Revenue for the quarter ended April 30 increased to $956.2 million from $328.2 million in the same period of 2020.
The company’s massive success in 2020, where it became a household name during the pandemic, comes to an end in 2021. The firm reported a 369% increase in revenue last quarter, with many analysts predicting a big drop as more businesses bring employees back into the office. .
“Work is no longer a place,” said the company’s CEO, Eric S. Yuan. “This is one place Zoom serves to connect your teams and empower them to bring their best ideas to life. We are excited to help drive the development of hybrid work that allows for greater flexibility, productivity and joy for both personal and virtual connections.
The company’s profit in the first quarter also reached more than $227 million, nearly ten times more than the $27 million it brought in in the first quarter of 2020. first quarter.
Although it posted massive success in 2020, it was not until the second quarter, which ended on July 31, that the firm really started seeing huge usage spikes (355%). As the pandemic spread through Europe and the US, and lockdown restrictions began to be in place, Zoom was beset with security issues. Users began reporting incidents of ‘Zoom bombing’ and businesses questioned the lack of end-to-end encryption.
In such a situation, most analysts expect Zoom’s growth to be lower in the second quarter than a year ago. With the roll-out of the vaccine set to welcome workers to more offices again, there is a suggestion that Zoom will lose some relevance.
© Dennis Publications
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