Zoom worth $125bn af­ter prof­its grow by 3,300pc

The Daily Telegraph - Business - - Business - By Margi Mur­phy in San Fran­cisco

ZOOM be­came worth more than $125bn (£91bn) yes­ter­day af­ter 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 on Mon­day that prof­its had in­creased by 3,300pc in the past three months, as hun­dreds of thou­sands of new busi­nesses signed up to the app.

Its dis­clo­sures that schools, busi­nesses and fam­i­lies had be­come in­creas­ingly de­pen­dent on the app to stay in touch dur­ing the height of the pan­demic led to shares ral­ly­ing by more than a third yes­ter­day, tip­ping its val­u­a­tion clear of $100bn.

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 10 em­ploy­ees or more to pay for its ser­vices. Zoom 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’s val­u­a­tion has soared on Nas­daq from $15.9bn in April last year.

It has brushed off se­cu­rity glitches, spec­u­la­tion over its Chi­nese work­force and sev­eral high pro­file “zoom bomb­ing” in­ci­dents, in which pranksters were able to en­ter pri­vate Zooms, oc­ca­sion­ally stream­ing of­fen­sive ma­te­rial.

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