The videoconferencing platform crushed expectations
Videoconferencing platform Zoom had a huge second quarter, with $663.5 million in revenue compared to $145.8 million a year ago, the company announced on Monday. It now has around 370,000 customers with more than 10 employees, an increase of 458 percent year over year.
“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,” Zoom founder and CEO Eric S. Yuan said in a statement announcing the earnings.
On a call with analysts— over Zoom, of course— Zoom CFO Kelly Steckelberg said subscriptions from new customers accounted for 81 percent of the second quarter revenue growth. The company did not see the customer churn it had expected, she added. Yuan noted that those new customers included ExxonMobil and Activision Blizzard.
The company’s revenue outlook for fiscal 2021 is now $2.39 billion, Yuan said. Zoom has become ubiquitous during the coronavirus pandemic, reflected in its blockbuster first quarter when it grew revenue almost 170 percent year over year to $328 million.
Zoom has struggled with its share of security issues in recent months, and the company had been criticized for implying its video chats were fully encrypted when they were not. It said in June it would allow users to enable end-to-end encryption in a beta version of both its free and paid tiers. Last week, the company suffered a widespread outage for several hours that affected all of its meeting and webinar services.