Zoom app's revenue grown by 169% !!!
On Tuesday, Zoom has reported the revenue growth of 169% from previous year in the 1st quarter earning reports and almost doubled the revenue guidance for the full year. Zoom app has now turned into a household name and other millions of customer's have also been added to using this feature.
The shares had fallen to 4% in the after hours trading at the time of the company's earning call, but now it has revealed higher than expected and cloud computing costs for dealing with the surge in demand.
As expected by the analysts, the adjusted earnings would be 9 cents per share and $202.7 million in the revenue for the quarter that ended in the 30th of April. The method of comparing the estimates of the analysts' is not necessarily straightforward, being given the unpredictable effects of the pandemic during the quarter.
Aslo, the company's guidance has been increased significantly for the fiscal year. As of now, it expects an adjusted earnings of $1.21 to $ 1.29 on the revenue of $1.79 billion to $1.80 billion. However, the company had forecast 42 cents to 45 cents of EPS on the revenue of $905 million to $915 million.
The results are really incredible and something of this magnitude ha never been seen before.
The company following it's previous practices, did not disclose the active user numbers. However, analysts have estimated that the Zoom's mobile app has at about 173 million monthly active users as of May 27, compared to that of 14 million on March 4.
A one time bonus worth two weeks pay has given by the Zoom's company to all of its non commissioned employees that might possibly help them pay for costs arising from any kind of other interruptions to their work due to the Covid-19 pandemic
Numerous people have flocked to Zoom of which other companies have also taken notice of. People have also come across some issues regarding the security and privacy in the software. Zoom had also announced to spend the nest 90 days in finding and fixing the problems in the beginning of April. A video calling feature has also been introduced by Facebook called messenger rooms which could be a possible alternative for Zoom. Also, Verizon introduced the acquisition of Blue Jeans, a smaller competitor.
The competition seems to be rising which is undoubtedly good for the consumers. However, the company has announced to not resort to introducing any kind of advertisements into the calling service.