Videoconferencing company Zoom reported fiscal Q1 earnings.
You must imagine Zoom isn’t doing all that bad in the midst of the pandemic, but they’re actually doing better than you think… in fact, they’re doing better than they themselves expected.
Zoom reported $328.2 million in revenue compared to the $202.7 million expected for the quarter ended April 30, which means the videoconferencing company’s revenue grew 169% year over year. It even gave all of its non-commissioned employees a one-time bonus worth two weeks’ pay to help them pay for costs arising from any interruptions to their work because of the pandemic.
According to a Bernstein note that cited Apptopia data, the Zoom mobile app added an estimated 159 million monthly active users between March 4 and May 27.
But with every success, problems follow. According to CNBC, as more people have flocked to Zoom, other companies have taken notice, and people have come across security and privacy issues in Zoom’s software. At the beginning of April Zoom said it would spend the next 90 days finding and fixing problems. Also in April Facebook introduced a video-calling feature called Messenger Rooms that could work as alternative to the free version of Zoom, sending Zoom shares downward, and Verizon announced the acquisition of smaller competitor Blue Jeans.