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In a nutshell: Zoom in its second quarter earnings report said it generated $663.5 million in total revenue for the quarter ending July 31, 2020, an increase of 355 percent compared to the same period a year ago. Net income for the quarter totaled $185.7 million, or $0.63 per share, versus just $5.5 million, or $0.02 per share, in the year-ago quarter.
Zoom said it had $1.5 billion in cash, cash equivalents and marketable securities as of July 31. Unsurprisingly, acquiring new customers was the company’s biggest growth driver. Over 370,000 customers were businesses with more than 10 employees, a healthy 458 percent increase from the same quarter a year earlier. What’s more, nearly 1,000 customers contributed more than $100,000 in revenue over the past 12 months.
Investors are responding favorably as share value in Zoom is up more than 41 percent as of writing, currently trading at $461.16 per share.
At the beginning of the year, Zoom was trading for less than $70 a share. Once the pandemic hit and people were forced to work from home en masse, adoption of the company’s video communications app soared. Founder Eric Yuan was already a multi-billionaire before the pandemic. Now, his nearly 22 percent stake in the company is worth around $20 billion.
Looking ahead, Zoom is forecasting third quarter revenue of between $685 million and $690 million with earnings per share between $0.73 and $0.74.
Masthead credit: Kate Kultsevych