The company’s performance was significantly better than analysts’ forecasts, causing Zoom Video Communications’ stock to soar by 11% immediately after the results were released.
Zoom’s fourth-quarter revenue more than quadrupled to $882.5 million. Analysts polled by Refinitiv had forecasted revenue of $811.8 million for the service. Net income rose 17 times year over year, to $260.4 million from the $15.3 million reported at the beginning of 2020. On a per share basis, the quarter-end profit was $0.87.
For the full year, Zoom’s revenue rose 326% to $2.65 billion and net income rose to $671.5 million.
Such successful reporting is due to the surge in popularity of the video calling app at the beginning of last year, when authorities in many countries began to impose coronavirus restrictions.
In the face of self-isolation, people started using messengers and video conferencing services much more frequently, both individuals and businesses. For example, the number of corporate Zoom customers with more than ten users increased by 470% to 467,000 in a year.
source: bloomberg.com
