Everyone’s using Zoom, and it shows

by | Jun 4, 2020

We’ve all been Zooming, so it probably comes as no surprise to hear that the videoconferencing service Zoom reported revenue growth of 169% from the previous year in its first-quarter earnings report on Tuesday.

Plus, its mobile app went from 14 million users in March to 173 million in May.

They came for WFH, but stayed for the virtual backgrounds.

The company also significantly increased its guidance for the fiscal year.

  • A public company’s earnings guidance is its report to shareholders on the earnings it expects to achieve in the quarter or fiscal year ahead.

 

In March, Zoom had forecast $0.42 to $0.45 in earnings per share on $905 million to $915 million in revenue.

It now expects $1.21 to $1.29 in earnings per share on $1.78 billion to $1.80 billion in revenue.

Needham analyst Richard Valera called the results “incredible.” “Never have I seen something of that magnitude in my 20 years of covering technology,” he added.

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