Nixse
0

Zoom Reports Second-Quarter Earnings

If there is one neglected necessity that the COVID-19 highlighted, that would be the importance of human connections.

As many people are on lockdown, video conferencing made everyone feel closer together.

Zoom Video Communications, a technology company headquartered in San Jose, California, records better than forecasted yields for the second quarter.

Total revenue hits $663.5 million for the quarter ended July 31, 2020. This translates to an impressive 355% increase from the same period last year, above Wall Street prediction at $500 million.

Net income attributable stands at $188.1 million or $0.63 take home per share.

Primary drivers of positive business performance include acquiring new users and expanding use among existing ones.

To date, the video conferencing app currently caters to 370,000 users holding ten employees and up. This is a 458% year-on-year increase.

For its future business outlook, the platform will bring together teams that will work on strengthening the security around the video environment to help the achievement of its business prospects.

 

Who is the Year’s Best Performer?

The tech company has been under scrutiny in the past months. This is due to the growing number of “gate-crashing” termed “zoom bombing,” especially on politically-motivated discussions.

Other issues include online harassment and explicit content, which the company has been working to solve together with experts in the field.

Behind the “overnight assumptions” of the many, Zoom Meetings weathered several micro and macroeconomic challenges since its inception in 2011.

It took the platform nine years to reach the heyday that it enjoys today, similar to several of its Nasdaq colleagues in the technology industry.

After its initial public offering just last year, its shares surged instantaneously by 70%, driving its market cap to $16 billion.

Today in the pandemic, as more people are working on remote jobs and taking online classes, its value is further realized be it in business, educational, or personal use.

Zoom shares hiked by 25% in the after-hours of stock trading on Monday. In total, it hit a 369% increase since the beginning of the year.

As for other technology companies, Tesla updates $5 billion new capital raised from its five-for-one stock split offering.



You might also like
Leave A Reply

Your email address will not be published.