On Tuesday, Zoom shares rose to 41%, bringing the market capitalization of the company to $129 billion after both revenue and profit exceeded the estimate of the analysts. The company has more than better revenue and earnings than in the second quarter.
Zoom benefited by the remote work in COVID-19 as a majority of employers turn to video chat
This stock increase added up to $37 billion in market value to the video-conferencing firm. It went public in April 2019 and was worth $16 billion after the first day of trading. Remote working due to COVID-19 benefited the company greatly as the majority of employers turned to video chat to stay in touch with their employees, clients, and partners.
Revenue for this period has risen 355% to $663.5 million, which beat the analysts’ estimate of $500.5 million. For this period, Zoom has a net profit which is triple the profit it had for the past six quarters combined.
CEO Eric Yuan now owns a stake worth $20 billion
He said that with the pandemic still in existence, they are committed to working hard and are humbled by their role of enabling communication worldwide during this time. CEO Yuan now has a stake of $20 billion in the company. He had founded Zoom nine years ago.
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The number of clients producing $100,000 or more in revenue has more than doubled from the previous year to 988. Yuan also highlighted Exxon, Activision, and ServiceNow on the earnings call.
Zoom raises forecast for the fiscal year 2021
As per the 2021 fiscal year forecast, revenue will be $2.37 billion to $2.39 billion, which means a 28% growth in the middle of the range. The video-conferencing company is now among the 20 most valuable US tech companies. It has a market cap higher than IBM and more than twice of VMware.
