Zoom Video: unexpected strong growth during 2020

Pandemic, lockdown and economic crisis have marked 2020 and the beginning of 2021, but some companies have been able to take advantage of the current health emergency to achieve unexpected results. 

One of these is Zoom Video Communications Inc., an American videoconferencing platform, the most used last year, which recorded a huge growth with “unprecedented results”. 

In early 2020, the popular video and call service went from 20 to 300 million active users every day and its shares increased by 300%. Its earnings from last year reached almost a billion dollars. 

The boom in revenues began with the first global lockdowns that forced thousands of workers and students to stay at home and use the many services available “remotely”. The American company ended the last quarter with revenues up 396%, recording sales of 882.5 million dollars compared to 188.3 million dollars of the previous year. Its profit reached 260 million dollars, thus quadrupling annual revenues and in fact its total revenues reached 2.65 billion dollars (+326%). 

“The fourth quarter marked a strong finish to an unprecedented year for Zoom. In FY2021, we significantly scaled our business to provide critical communications and collaboration services to our customers and the global community in response to the pandemic. We are humbled by our role as a trusted partner and an engine for the modern work-from-anywhere environment. Our ability to rapidly respond and execute drove strong financial results throughout the year”, said Eric S. Yuan, founder and chief executive officer of Zoom. 

The company claims to be well positioned for a strong growth of the platform for the year 2022 as well and in fact expects revenues to increase by 41%. According to the official report, as regards the first quarter of the fiscal year 2022, total revenue should reach between 900 and 905 million dollars; instead, as regards the full fiscal year 2022, the total turnover should register between 3.760 billion dollars and 3.780 billion dollars. The expected future growth increased the company’s shares by approximately 10%. 

On March 1, the Zoom company’s title recorded a sharp rise of 9.65% on Wall Street and the shares rose from 373.61 dollars per share to 409.66 dollars per share. More than positive news for Eric S. Yuan who owns 22% of the company, his net worth thus amount to a total of about 18 billion dollars.