SECURITY concerns and reports of possibly problematic ties to Chinese authorities notwithstanding, Zoom Video Communications has been a major beneficiary of the changes brought about by the novel coronavirus pandemic. As much of the world has been working from home and relying on technology to stay in touch with colleagues and loved ones amid national lockdowns, videoconferencing apps saw an unprecedented surge in usage, with Zoom one of the most popular options available.

“Work is no longer a place, it’s a space where Zoom serves to empower your teams to connect and bring their best ideas to life,” Eric S Yuan, founder and chief executive officer of Zoom said in the company’s earnings release in June. “We are energised to help lead the evolution to hybrid work that allows greater flexibility, productivity, and happiness to both in-person and virtual connections.” In the quarter ended July 31, Zoom’s revenue surpassed US$1 billion for the first time, as the company managed to hold on to its pandemic gains. Despite many workers returning to their offices once fully vaccinated, companies around the world continue to embrace a hybrid work model, which has proven not only effective in keeping the ball rolling during the pandemic, but also popular with workers who embraced the new freedom to work from anywhere.

As the following chart shows, Zoom saw its revenue skyrocket throughout the fiscal year ended January 31, 2021. Following a 169-per cent revenue increase in the first quarter, year-over-year revenue growth accelerated to 355, 367 and 369 per cent, respectively, in the second, third, and fourth quarter. For the 12 months ended January 31, Zoom’s revenue amounted to $2.65 billion, up from just $623 million the previous year. The video conferencing company ended the year with a net profit of $671 million, up from just $22 million in fiscal 2020. As of September 1, Zoom had a market capitalisation of $88 billion, compared to roughly $30 billion at the onset of the pandemic.

— Felix Richter

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