Zoom’s video conferencing service sees another quarter of profits during the pandemic. More and more businesses and other users are paying for subscriptions to have control over their virtual meetings.
The increase in subscribers enabled Zoom to record another quarter of explosive growth. The company on Monday reported that its revenue for the May-July period more than quadrupled from the same time last year to $663.5 million, boosted by a steadily rising number of users converting from the free to the paid version of Zoom’s service.
Zoom finished its fiscal second quarter with 370,200 customers with at least 10 employees, a gain of about 105,000 customers from the end of April. Just a year ago, Zoom only had 66,300 customers with at least 10 employees paying for subscriptions.
The sudden increase in revenue has helped Zoom earn nearly $186 million, or 66 cents per share, during its latest quarter, up from just $5.5 million at the same time last year.
“Organizations 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 CEO Eric Yuan said.
Zoom market value to cross top automakers
If the stock continues on the same track during Tuesday’s regular trading session, Zoom for the first time will boast a market value of more than $100 billion. It will exceed the combined value of two-storied automakers, General Motors and Ford, and two major airlines, American and United.