Profits Zoom as app rides Covid wave

As the Dow Jones bell rang time on Monday, Zoom execs cracked open the bubbly as the company reported a quintupling of its profits in the second quarter of 2020.

Reports on major business news sites say that Zoom’s revenues leaped 355% to $663.5m (£496.3m) for the three months ending 31 July, beating analysts’ expectations of $500.5m.

Profits soared to $186m, while customer growth rose 458%, compared with the same period in 2019.

Key to Zoom’s success was its ability to add paying customers – high-budget corporate clients – as opposed to those who use its services for free. And all this thanks to COVID-19 which has transformed the market for apps which provide digital meeting platforms.

Zoom, together with rivals Cisco Webex and Microsoft Teams, have all seen a surge in usage of their video conferencing platforms since coronavirus lockdown measures were imposed by multiple countries in March.

Looking ahead, Zoom expects the current quarter to be another blockbuster period.