The global coronavirus pandemic has made Zoom to communications what Hoover is to vacuum cleaning and this was born out by yesterdays second quarter earnings with a revenue up 355% year-over-year to $663.5 million.
Zoom founder and CEO, Eric S. Yuan, alluded to a belief that their growth was sustainable in the longer term due to a shift in how and where we work saying “Organizations are shifting from addressing their immediate business continuity needs to supporting a future of working anywhere, learning anywhere, and connecting anywhere on Zoom’s video-first platform".
Revenue drivers included both new customers and expanding across existing customers with almost a thousand customers each contributing more than $100,000 in the past 12 months revenue, up approximately 112% from the same quarter last fiscal year.
Zoom predicts revenue of between $2.37 billion and $2.39 billion for FY21, and year on year increase of more than 280%.
Zooms performance outstripped even the most optimistic analyst predictions, but on the ground the picture is not so rosy as Zoom struggled to fix outages after a return to school with virtual classes in the US put the infrastructure under pressure, whilst many public sector organisations remain reticent about using the platform due to security concerns.