Zoom’s market cap now stands at more than $129 billion.
Zoom Video Communications reported its fiscal second-quarter earnings after a Zoom Video Webinar for investors on August 31 where the company’s financial results and business highlights were discussed, and saw that their results were better than analysts had expected after the coronavirus pandemic led officials to direct people to stay home around the world and become more dependent of Zoom’s video-calling software for business.
Amid the pandemic, the platform for video-conferencing raised its full-year guidance significantly as shares rose as much as 40% completing $663.5 million, up 355% year-over-year. Net cash provided by operating activities was $401.3 million for the quarter, compared to $31.2 million in the second quarter of fiscal year 2020. Free cash flow was $373.4 million, compared to $17.1 million in the second quarter of fiscal year 2020.
Zoom founder and CEO, Eric S. Yuan said: “Organizations are shifting from addressing their immediate business continuity needs to supporting a future of working anywhere, learning anywhere, and connecting anywhere on Zoom’s video-first platform. At Zoom, we strive to deliver a world-class, frictionless, and secure communication experience for our customers across locations, devices, and use cases. Our ability to keep people around the world connected, coupled with our strong execution, led to revenue growth of 355% year-over-year in Q2 and enabled us to increase our revenue outlook to approximately $2.37 billion to $2.39 billion for FY21, or 281% to 284% increase year-over-year.”
With these better-than-expected numbers, the company has been investing the last few months in R&D centers, hardware offerings, and seasoned execs across its business.