Zoom rides pandemic to explosive growth

Zoom’s videoconferencing service is deepening its integral role in life during the coronavirus pandemic as tens of thousands more businesses and other users pay for subscriptions.

The surge in paying customers has enabled the company to hail another quarter of explosive growth.

Zoom on Monday reported revenue for May-July more than quadrupled from the same time last year to $US663.5 million ($A899.5 million), boosted by rising numbers of users converting from free to paid versions of its service.

Zoom finished its fiscal second quarter with 370,200 customers with at least 10 employees, a gain of about 105,000 customers from the end of April.

A year ago, it only had 66,300 customers with at least 10 employees paying for subscriptions.

All that money pouring in helped Zoom earn nearly $US186 million, or 66 cents per share, during its latest quarter, up from just $US5.5 million at the same time last year.

“Organizations are shifting from addressing their immediate business continuity needs to supporting a future of working anywhere, learning anywhere, and connecting anywhere on Zoom’s video-first platform,” Zoom CEO Eric Yuan said.

Investors have latched on to Zoom too.

After having already increased by fivefold so far this year, Zoom’s stock price is poised to to climb to even loftier heights.

The exuberant response to its quarterly report lifted the company’s shares by nearly 23 per cent in Monday’s extended trading.

If the stock follows a similar arc during Tuesday’s regular trading session, Zoom for the first time will boast a market value of more than $US100 billion – exceeding the combined value of two storied carmakers, General Motors and Ford, and two major airlines, American and United.

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