September 01, 2020

Anna Murray 

On August 31 Zoom Video Communications declared strong earnings results in its fiscal second quarter, 92 cents per share adjusted, which were better than analysts had expected, 45 cents per share. The next day its shares rose as much as 40%. Zoom’s market capital now stands at more than US$129 billion, up from US$25 billion a year ago. Zoom shares soared as much as 47% to US$478 significantly in trade. The company is now larger than IBM and AMD.

To maintain social distancing amid the coronavirus pandemic, people become dependent on Zoom’s video-calling software for business, educational and personal use. Zoom’s revenue from new subscriptions grew 355% in the fiscal second quarter whereas the prior quarter revenue grew 169%. 

Zoom averaged 148.4 million monthly active customers in the quarter, up 4,700% year over year. Zoom shares have been up 369% since the beginning of the year. As Zoom’s shares hit a record high, some Wall Street analysts cautioned that a return to office work, lockdown lifted, could trigger cancellation from small corporate and private customers.

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