Zoom Video Communications shares rose as much as 9% in extended trading on Monday after the company reported fiscal second-quarter earnings that were better than analysts had expected and raised its full-year guidance significantly.
Revenue grew 355% on an annualized basis in the fiscal second quarter, which ended on July 31, and income neared $186 million, according to a statement. In the prior quarter Zoom’s revenue grew 169%.
People became more dependent on Zoom’s video-calling software for business, educational and personal use during the quarter, after the coronavirus pandemic led officials to direct people to stay home around the world, meaning that people could no longer meet in person as before. The company hired information security and diversity leaders, addedÂ Lt. Gen. Herbert Raymond “H.R.” McMaster to its board, announced plans for research and development centers in Phoenix and Pittsburgh, and said it acquired secure messaging start-up Keybase.
Zoom averaged 148.4 million monthly active users in the quarter, up 4,700% year over year, RBC analysts led by Alex Zukin wrote in a note distributed to clients on Aug. 17, citing data from app analytics start-up SensorTower. The analysts have the equivalent of a buy rating on Zoom stock.
One HUGE downside of Zoom I have not heard appropriately acknowledged is that there is no way to exchange covert glances with one other person about the nonsense some other person is spouting and that is like 50% of how I communicate.
— Rebecca Metz (@TheRebeccaMetz) August 30, 2020
They could have condemned BLM Terrorism during their Zoom Call Convention.
— Benny (@bennyjohnson) August 31, 2020