Zoom Raises Annual Sales After Beating Quarterly Predictions 

Zoom-Raises-Annual-Sales-After-Beating-Quarterly-Predictions

On Monday, the US-based video conferencing app, Zoom, surged its annual profit estimates by 30% after beating the experts’ quarterly predictions. The company’s shares have approximately quadrupled this year, trading at $355.30, or 9.3% advance.

On Friday, the company hit a new high after trading after closing the session at record 243.1 pounds a share (or $325.1). Earlier, Zoom posted a better than predicted financial reports with its revenue increasing to $663.5M, or 355% rise, as compared to the analysts’ estimates of $500.5 million. Moreover, the firm’s gross earnings also advanced to 71% from 68% but are still lower than the 80% range when Zoom provided its services to free users before the mass surge.

Video conferencing apps, which were a mere alternative to office meetings, have now become a daily routine after the coronavirus begin a new work-from-home normal due to restrictions and lockdowns. Other Zoom counterparts Webex, Cisco System Incorporation’s product, and Team, Microsoft’s platform, also reported a surge in usage. Zoom has started to convert its free user base into paid subscribers as the company relies heavily on outsourcing services like cloud computing from Oracle and data centres from Amazon to offer services, which means it had to pay for its free user base too.

Eric Yuan, Zoom’s founder and former Cisco manager, increased its annual sales estimates for the company to $2.37 billion to $2.39B as compared to a previous forecast of $1.8 billion. The EPS surged to 63 cents per share, or $185.7 million, as compared to $5.5 million, or 2 cents a share, one year ago.

Excluding items, the company’s revenue was 92 cents a share while the expert’s predicted 45 cents EPS.

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