Zoom reports nearly 100-fold revenue growth in Q3 2020

Video conferencing service Zoom has reported financial results for the third quarter of 2020, ended October 31. The company's net profit rose to $198.4 million from $2.2 million a year earlier.

The company's revenue increased almost five times to a record $777.2 million last year, the figure was $166.6 million.

Adjusted earnings rose to $0.99 from $0.09 per share.

The number of subscribers to Zoom's paid services is also growing. Over the year, their number increased by 458% - to 433.7 thousand corporate clients with more than 10 employees. At the same time, due to the provision of a number of free services, the gross margin in the third financial quarter fell to 67% from 71%. The company had significant spending on cloud services.

Zoom forecasts fourth financial quarter revenue in the range of $806 million to $811 million, with adjusted earnings of $0.77- $0.79 per share.

The company has improved its outlook for its full fiscal year for the third time since the pandemic began. So, by the end of the year, Zoom expects to receive from $2.575 billion to $2.58 billion.

Despite the positive results and a positive outlook, Zoom shares fell 5%. According to Bloomberg, this was due to investors' fears that 2021 will no longer be so favorable for the company. Including because the indicators of the third quarter were slightly lower compared to the previous two.

Since the beginning of the year, the company's capitalization has increased by about 603.1% and is $134.14 billion.

Google News
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