Zoom saw revenues rise 191% in the first quarter of this financial year
Zoom (NASDAQ:ZM) last night said it expects its revenue for the current quarter will surpass estimates due to the increased provision of hybrid models of working.
Over the past year, Zoom’s brand has been popularised across the world as companies and schools increasingly used its service to cope with being locked down.
James Andrews, Personal Finance Expert at money.co.uk, commented:
“Zoom has been one of the biggest success stories of the past 15 months, seeing revenues surge 326% over its 2021 fiscal year as ever more companies and individuals signed up during various lockdowns. In short, it’s gone from a relatively unknown US tech firm to a household name across the globe.”
With the vaccine roll-out proving to be a success, the question now is if Zoom can stand firm in the face new challenges.
“The key question investors have been asking is if the firm can continue to grow as people return to work and virtual meetings are replaced by face to face ones. So far, at least, the answer appears to be ‘yes’, with the video conferencing platform seeing revenues rise 191% in the first quarter of this financial year,” said Andrews.
“With Zoom now established as the leading specialist video conferencing tool, the other big question is whether it can continue to hold its position as the likes of Facebook, Microsoft, Google and more seek to muscle into the market leveraging their existing users, platforms and bank balances to take revenue from Zoom.”
The company based in San Jose, California, addressed those concerns by forecasting revenue for the current quarter to reach between $985m and $990m. According to data from IBES Refinitiv, this is above Wall Street estimates of $931.8m.
Zoom shares closed down by 1.15% yesterday, as the company has seen a steady decline since October.
