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