Zoom’s Q1 profit soars

3 June, 2021 12:00 AM printer

CALIFORNIA: Zoom Video Communications’ net profit surged more than 741 per cent in the first quarter, compared with a year ago, as companies increasingly adopted hybrid work models and demand for video conferencing increase, boosting the company’s revenue.

Net profit to shareholders surged to $227 million, from $27m in the same period a year ago, the Nasdaq-listed company, said in a regulatory filing, report agencies.

Revenue during the February-April period increased 191 per cent on an annualised basis to $956.2m, beating analysts’ estimates of $906m, according to Refinitiv.

“We kicked off the fiscal year with a very strong first quarter … with strong profitability and cash flow,” said Zoom founder and chief executive Eric Yuan.

“Our steadfast commitment to empowering customers to work and learn from anywhere with our expansive, innovative and frictionless video communications platform continued to drive our results,” he added.

Zoom’s shares closed nearly 1.2 per cent lower at $327.7 on Tuesday. They rose 2 per cent in after-hours trading to $334.4 a share.

The company’s stock has gained more than 57 per cent over the past 12 months.

Zoom raised its revenue outlook for the second quarter ending in July this year and the 2021-2022 financial year.