Coronavirus BRIEFING

Pandemic Sends Zoom's Revenue Skyrocketing

One of the most immediate and profound effects of the COVID-19 pandemic was the shape rise in teleconferencing throughout the world for both business and personal use.

Statista’s Felix Richter notes that despite security concerns and reports of possible links to China, Zoom Video Communications has to be considered one of the biggest beneficiaries of the pandemic. “As much of the world has been working from home and relying on technology to stay in touch with colleagues and loved ones amid strict stay-at-home orders, video conferencing apps saw an unprecedented surge in usage, with Zoom one of the most popular options available,” Richter observes.

“The COVID-19 crisis has driven higher demand for distributed, face-to-face interactions and collaboration using Zoom. Use cases have grown rapidly as people integrated Zoom into their work, learning, and personal lives,” Eric S. Yuan, founder and chief executive officer of Zoom said earlier this year after his company had reported 169 percent revenue growth for the three months ended April 30.

As the accompanying Statista chart shows, Zoom saw its revenue skyrocket even further in the past three months, accelerating an already impressive upward trend. In the quarter ended July 31, the second quarter of Zoom's fiscal year 2021, total revenue for the video conferencing company amounted to $664 million, up 355 percent from the same period of last year. For the ongoing quarter, Zoom expects revenue between $685 to $690 million as "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."