With revenue growth that more than quadrupled year over year and net income that climbed more than 3,000 percent, it’s safe to say that Zoom Video Communications has cemented itself as one of the business success stories during a tumultuous 2020.
Consumers and business users flocked to the popular platform this year to virtually meet and collaborate with colleagues, classmates, friends and family members as the COVID-19 pandemic prompted stay-at-home and quarantine orders around the globe. Now, as restrictions begin to loosen in some areas, many companies are adopting a “hybrid” work-from-home model that will limit in-person gatherings and the number of employees in the office at a time. Needless to say, demand for Zoom’s services won’t be on the decline anytime soon. The company didn’t see any decrease in its second fiscal quarter; in fact, new customer growth contributed to 81 percent of Zoom’s revenues. And Zoom is now larger than both IBM and AMD with a market cap standing at more than $120 billion.
The San Jose, Calif.-based video specialist, under the leadership of founder and CEO Eric Yuan, reported Q2 2021 earnings and revenue on Monday evening that blew past Wall Street estimates. Zoom lifted its annual revenue outlook at the same time.
Here are five things you need to know about Zoom‘s impressive Q2 2021 earnings and its strong financial forecast for the rest of the year.