Zoom revenues up 369pc one year into the pandemic

2 Mar 2021

Image: © ink drop/Stock.adobe.com

The video-conferencing company’s latest quarterly revenues passed $882m after an ‘unprecedented year’ for remote working.

One year after working from home became the norm, Zoom has reported a 369pc increase in quarterly revenue year over year.

The video-conferencing company, which has enjoyed a boom in user activity since the start of the pandemic, brought in $882.5m in the last quarter. Full-year revenues reached $2.65bn, an increase of 326pc compared to the previous fiscal year, and full-year profits were $671m. All revenue figures were in line with analyst expectations.

Chief executive Eric Yuan said that Zoom faced an “unprecedented year” in meeting demand for its product.

“[We] significantly scaled our business to provide critical communications and collaboration services to our customers and the global community in response to the pandemic,” he said.

The company doesn’t expect to see any end to the working from home trend just yet and is forecasting its next full-year revenues to be more than $3.7bn. After announcing the results, Zoom shares were up by around 11pc.

Even as vaccine roll-outs continue around the world, working from home is tipped to remain a feature for much of 2021 before a mass return to offices.

Despite being one of the main beneficiaries of remote working, Yuan admitted during the earnings call that many people may be tired of working from home and want to return to the office.

Last month, researchers at Stanford University published a study into ‘Zoom fatigue’, which examined the psychological effects of spending hours a day on Zoom or other video calling platforms. It found that video calls lead to a much higher cognitive load for the user and up-close eye contact to screens while on calls can be fatiguing.

Looking ahead, Yuan added that the Zoom is “well positioned for strong growth” with its video communications platform. Over the last year, the company increased spending on research and development by more than 144pc, with a focus on security and encryption.

Jonathan Keane is a freelance business and technology journalist based in Dublin