Zoom Boosts Sales Forecast as Coronavirus Pandemic Continues
Zoom App Is Being Used In Almost Every Country to Connect With Educational Institutes, Workplaces, Family and Friends
The popularly used video conferencing firm Zoom has stated in a press release that the annual sales of this year would be much higher than previously anticipated as the coronavirus pandemic continues to affect the daily lives of people across the world, consequently increases the demand for the software.
Increasing clientele amid coronavirus pandemic
The California based Software Company Zoom stated that their yearly revenue is expected to hit more than $2.5 billion, which is more than twice the amount forecasted in the initial few months of the coronavirus pandemic.
The escalation in the revenue was predicted as zoom, which was once just a niche software firm at the start of this year, experienced a rapid surge towards prominence due to the nationwide lockdown implemented in almost every country across the world due to the pandemic of COVID-19.
Millions of users have begun using the video conferencing software to socialize with their friends and family as for being unable to physically meet. The Zoom software is also being used in a commercial setting for educational purposes for conducting online classes and meeting with workplace colleagues.
The chief executive and founder of Zoom, Eric Yuan, stated that the software company is no converting most of their business users to be paying customers, as the general population across the world is now slightly adapting the lifestyle of being able to work from any place remotely.
Surge in sales and revenue of Zoom
During the last week of the month of October, the Zoom software has reportedly 434,000cutomers with business accounts, and each account has at least 10 employees connected. When compared with last year’s statistics with the same month last year, there has been an approximately 485% increase in the number of regular customers on zoom applications.
According to Zoom, the sales of their video conferencing software were able to hit $777 million during the period from August to October, which has increased 367% year-on-year. The total profits gained by Zoom due to the spread of coronavirus infection were around $198.4 million in the third quarter of 2020, as compared to $2.2 million in the same quarter last year.
On Monday, the software firm revised further increased in their full-year forecast for the third time before the end of this year, telling their investors and potential investing parties that they expect their yearly sales for Zoom in 2020 to be more than $2.5 billion, which is up from the previous statement that suggests forecasted amount in the month of August of about $2.37 billion. In comparison, Zoom was only able to make $622.7 million in profits in the last financial year.
Despite the surge observed in the gains of the company, there has been a decline in the shares of Zoom during the after-hours trade, after the software firm released a public statement disclosing that the expected amount of sales by the company were between $806 million to $811 million in the last three months of this financial year, implying a minor hold up in the swift growth rate of the firm.
Possible future of Zoom after coronavirus pandemic
The investors are eager to learn the outcome of the company after the coronavirus outbreak is successfully contained across the world in the upcoming future.
The chief financial officer for Zoom, Kelly Steckelberg, stated that the entire firm is positively looking forward towards the outlook of Zoom in the near future, but provided a warning to their investors that the impact of the coronavirus pandemic and its associated economic outcomes on the video conferencing software is highly unknown, due to which nothing could be anticipated right now regarding the future of the company after eradication of COVID-19 infection.