{"id":41605,"date":"2020-12-01T10:45:56","date_gmt":"2020-12-01T10:45:56","guid":{"rendered":"http:\/\/icloud.pe\/blog\/?guid=c7ddccdba58695ecc982034579d88724"},"modified":"2020-12-01T10:45:56","modified_gmt":"2020-12-01T10:45:56","slug":"zoom-caps-breakthrough-year-with-a-367-surge-in-revenue","status":"publish","type":"post","link":"https:\/\/icloud.pe\/blog\/zoom-caps-breakthrough-year-with-a-367-surge-in-revenue\/","title":{"rendered":"Zoom caps breakthrough year with a 367% surge in revenue"},"content":{"rendered":"


\n Bobby Hellard<\/a><\/span>
\n <\/span><\/p>\n

\n
\n
1 Dec, 2020<\/span><\/div>\n<\/p><\/div>\n<\/div>\n

\n<\/a><\/p>\n

\n

Zoom has reported $777.2 million in revenue for its third quarter, roughly four times more than it reported during the same period in 2019.\u00a0<\/p>\n

It is the second quarter in a row<\/a>\u00a0that the video conferencing service has recorded quadruple growth, with paid customers increasing 485% year-on-year.\u00a0<\/p>\n

<\/p>\n

\nThe increase rounds off a highly successful year for\u00a0Zoom<\/a>. This time last year it was\u00a0a relatively\u00a0obscure company, hardly known outside of the US, but by March the video conferencing service\u00a0had become a household name.<\/p>\n

The need for collaboration software, tied to the fact it offered a free service alongside\u00a0a paid business tier, helped put the company in\u00a0startups<\/a>, schools and homes around the world.\u00a0<\/p>\n

“Strong demand and execution led to revenue growth of 367% year-over-year with solid growth in non-GAAP operating income and cash flow in our third fiscal quarter,” said Zoom CEO Eric Yuan.<\/p>\n

“We expect to strengthen our market position as we finish the fiscal year with an increased total revenue outlook of approximately $2.575 billion to $2.580 billion for the fiscal year 2021, or approximately 314% increase year-over-year.”<\/p>\n

Zoom is expecting its\u00a0growth to continue into 2021 with total revenue estimated to be between $806 million and $811 million for Q4.\u00a0However, its revenue\u00a0will be\u00a0offset by higher cloud costs due to the sheer amount of free users.<\/p>\n

The company said it had 433,700 customers with more than 10 employees in Q3, which is a 485% increase from 2019\u00a0but only a 17% increase from the second quarter.\u00a0<\/p>\n

The\u00a0video conferencing service<\/a>\u00a0does use its own data centres, but it also heavily relies on vendors like\u00a0AWS<\/a>\u00a0and Oracle, which means it will bear some the cost for its free tier users. This pushed its gross profit margins down to 66.7%, below analyst estimates of 72.1%.<\/p>\n

While the firm has its own high expectations for Q4, its gross margins are likely to remain lower than expected as the spike in free users continues to offset its overall business revenues.\u00a0<\/p>\n

Zoom also announced this that\u00a0it has selected AWS as its preferred cloud provider<\/a>. This comes just months after the company\u00a0shifted a portion of its cloud infrastructure to\u00a0Oracle Cloud<\/a>\u00a0due to an unprecedented surge in new users following the announcement of lockdown restrictions. <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Bobby Hellard<\/p>\n

1 Dec, 2020 <\/p>\n

Zoom has reported $777.2 million in revenue for its third quarter, roughly four times more than it reported during the same period in 2019.\u00a0
\nIt is the second quarter in a row\u00a0that the video conf…<\/p>\n","protected":false},"author":403,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-41605","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/41605","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/users\/403"}],"replies":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/comments?post=41605"}],"version-history":[{"count":2,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/41605\/revisions"}],"predecessor-version":[{"id":41613,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/41605\/revisions\/41613"}],"wp:attachment":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/media?parent=41605"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/categories?post=41605"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/tags?post=41605"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}