Zoom made more money than ever in the second quarter of 2020. At $ 663.5 million, the video conferencing platform more than quadrupled its revenue in the same period last year and is increasing its forecast for the next fiscal year.
The company also added hundreds of thousands of new paying primary users such as ExxonMobil and Activision Blizzard. According to Zoom, around 370,200 customers with more than 10 employees are currently being served, an increase of 458% compared to the second quarter of the previous year.
With more people working from home, businesses now rely heavily on remote communication services to stay connected, and Zoom has emerged as one of the shift's biggest winners.
In her opening speech on the earnings call, Kelly Steckelberg, CFO said that nearly 81% of the company's blockbuster surge came from new customer subscriptions and the rest of existing customers. Zoom's revenue also rose 170 percent to $ 328 million in the last quarter.
"Our ability to connect people around the world, as well as our strong execution, resulted in revenue growth of 355% year over year in the second quarter and enabled us to increase our revenue prospects for FY21 to approximately $ 2.37 billion. US $ 2.39 billion increase 281% to 284% more than last year, "said Eric Yuan, CEO of Zoom, in a statement.
But this surge in traffic cost Zoom. In the past few months, the company's software has been the focus of several reports criticizing its lax security measures. In April, Zoom was also caught posting misleading encryption claims on its website. There have also been several widespread outages, the last of which only occurred a week ago. Zoom's decision to exclude users of the free plan from the new privacy policy so the FBI can catch intruders was also not well received.
In response, Zoom conducted a 90-day security review of its systems and announced the ability to enable end-to-end encryption for calls. "Although the 90-day initiative has ended, security and privacy issues will remain an important part of Zoom's strategy and DNA as we strive to maintain the trust of our customers and other stakeholders," added Yuan.
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