Dhe video conferencing service Zoom continued to grow explosively in the past quarter – but this is no longer fast enough for investors. The Zoom share fell by around five percent after the figures were presented. The turnover jumped within a year from 166.6 million dollars (139.2 million euros) to a good 777 million dollars. The profit in the end of October closed third quarter of fiscal year even shot up from 2.2 million to 198.4 million dollars.
Zoom had risen to a new league with the corona crisis. The company was originally supposed to provide video conferencing for companies. During the pandemic, it wasn’t just usage in companies that increased; consumers also turned to Zoom for all sorts of scenarios – from family reunions to yoga classes.
Zoom still earns its money from doing business with larger companies. The number of customers with more than ten employees rose to 433,700, almost six times more than a year ago, as Zoom announced after the American market closed on Monday. Three months ago the company only had 370,200 customers with more than ten employees.
How can Zoom monetize popularity?
Subscription revenues from business with new customers accounted for around 80 percent of sales growth in the past quarter, said finance director Kelly Steckelberg in a conference call with analysts. At the same time, Zoom has to spend more money on technical infrastructure such as cloud capacities. Zoom also invests in marketing in the hope of securing future growth. It is still unclear how Zoom could monetize consumer popularity – and how user numbers will develop once the pandemic is over.
For the current quarter, Zoom expects revenues between 806 and 811 million dollars. The revenue forecast for the full fiscal year now raised Zoom to around $ 2.58 billion, from up to $ 2.39 billion three months earlier.