Zoom's first-quarter earnings report shows a spike in the number of users paying for the video conferencing service, further highlighting how much the company has grown in 2020 alone. In the last six months, Zoom has manged to establish itself as one one of the main video-calling services and that growth looks unlikely to change anytime soon.
A lot has changed since the start of the coronavirus pandemic, including in the tech industry. Whether it is the live social network Houseparty, or other video conferencing and workplace services, including Google Hangouts, Microsoft Teams, and Skype, they have all either seen an increase in usage or users. For many, these services have now become a simple and accessible option for carrying out virtual communications and face-to-face interactions with family and friends, clients, team workers, collaborators, and businesses. Despite underlying privacy and security concerns, Zoom has proven particularly popular among individuals and businesses, as well as K-12 schools and educational institutions.
Zoom recently published its earnings report and confirmed a total of $328.2 million dollars in revenue for the first quarter which represented a 169 percent growth in revenue, compared to last year. The video-calling platform which offers a free plan for businesses with less than 100 participants and paid premium plans for clients with over 100 employees, had over 300 million daily participants in April (up from 90 million participants in 2019), recorded over 3 trillion meeting minutes, and is hosting approximately 265,400 businesses with more than 10 employees - equivalent to a 345 percent increase compared to the year before. In addition, it has over 769 customers contributing more than $100,000 in revenue. The company also predicted a similar increase in the number of users in the coming months, with social distancing and remote working become a norm, Zoom executives expect to see a total of $495 million to $500 million generated in revenue during the second quarter.
A Good Year For Zoom, So Far
While Zoom's shares increased 31.6 percent over the last month, they fell by more than 3 percent after company executives contemplated the possibility of users leaving the service once the pandemic comes to an end. During the earnings call, Zoom also further discussed the future of the company, the reported privacy and security concerns, actions being undertaken to combat security risks, growth strategy for the coming months, added features, and collaborations.
During these trying times, Zoom has emerged as a savior for many individuals and businesses trying to operate out of their homes. For some businesses, Zoom has gone a long way to ensuring they have actually been able to remain in business during the pandemic. However, and in spite of how it has helped during these time, it will be interesting to see if Zoom can continue to acquire users and at the same time, overcome its privacy and security concerns.
Source: Zoom