Zoom became worth more than $100bn (£75bn) on Monday as it posted a surge in profits and user numbers that revealed the extent of the video calling company’s lockdown boom.
The US company said profits had increased by 3,300pc in the last three months, as hundreds of thousands of new businesses signed up to the app.
Shares in the company jumped by 19pc in after-hours trading on Monday, sending its valuation past $100bn for the first time, as it revealed that rises as schools, businesses and families became increasingly dependent on the app to stay in touch during the height of the pandemic.
Zoom revealed quarterly profits of $186m, up from $5.5m a year ago. Revenues more than quadrupled to $664m thanks to an increase in willingness of larger businesses of ten employees or more to pay for its services. Zoom also offers a free version for shorter meetings.
Eric Yuan, Zoom’s founder and chief executive said: “Organisations 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.”
Zoom has proven unstoppable throughout the pandemic, with a valuation that has soared from its $15.9bn Nasdaq in April last year. It has brushed off security glitches, speculation over the company’s Chinese workforce and several high profile “zoom bombing” incidents, in which pranksters were able to enter private Zooms, occasionally streaming offensive material.
Wall Street is watching to see whether demand is indicative of a growing trend toward remote working that will outlive the virus.
Advances in cloud computing and productivity tools like G Suite, Zoom, Slack and video calling have enabled teams and departments to continue their work without a trip to the office. Google, Twitter, Facebook, Airbnb and Uber have all told employees they will not need to return to the office until 2021.