ZOOM had a big beneficiary due to covid-19 pandemic. The Company almost doubled its revenue and expects the final revenue report to come between $1.7 billion and $1.8 billion.
Live Video Chat, Video Conferencing and webinars are athe core of Zoom’s business. The company have gained millions of new users using Zoom for attending online classes, working from home and collaborating with colleagues.
The Global Covid-19 pandemic forced people to be locked in their house, maintaining social distancing forcing companies, people to look for video chat services like Zoom and Skype.
Net profit came at $27 million, compared with $200,000 in the year ago quarter. New customers accounted for approximately 71% of the increase in revenues, according to Zoom.
Zoom had more than 10 employees. There was 353% growth in the number of Zoom users.
The daily users peaked at 300 million in April 2020 as compared to 10 million in December 2019.
The company’s growth overnight had exposed many security flaws in its software, pressurizing Zoom to announce a 90-day security plan and putting off all other product updates.
The company also have bought up encryption startup Keybase and has announced that it will offer better encryption for paid customers.
During the earnings call, Zoom CEO Eric Yuan indicated that the company doesn’t want to charge extra for end-to-end encryption in future but it will not likely give end to end encyrption in the free software.
While big companies like Google and governments, including India’s, have advised against using Zoom for official purposes the company has continued to grow during the pandemic.
The company said chip giant ARM and international law firm Baker Mackenzie entered its customer base during the pandemic.