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Zoom reports nearly 100-fold profit growth over the previous year

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Video call service Zoom has published its financial statements for the third quarter of 2020. The company’s net income rose to $ 198.4 million, compared with just $ 2.2 million in last year for the same period.

Thus, the company’s net profit has grown 90 times over the year. On a per share basis, net income increased from $ 0.09 to $ 0.99 per share. The revenue increased almost fivefold – to $ 777.2 million (last year it was $ 166.6 million).

The company’s capitalization has grown since the beginning of 2020 to $ 134.14 billion (603.1%).

The company also noted an increase in paid service subscribers – at the end of the third quarter, Zoom had about 434,000 corporate customers with over 10 employees, almost five times more than a year earlier. Over the past year, 1,289 customers brought income to the service in more than $ 100 thousand – 136% more than in 2019.

The company’s earnings beat Wall Street analysts’ forecasts, according to the NASDAQ website. The specialists assumed that the revenue would be $ 694 million. At the same time, Zoom’s expenses also increased, causing the gross margin to fall from 71% to 67%. This happened due to the fact that the company provided a number of free services, and also spent a lot on the development of cloud services. As a result, at the close of trading on Monday, the company’s shares, despite the record growth in profits, fell by 5.1% – rising costs scared away investors, notes NASDAQ. In addition, investors fear that 2021 will no longer be so favorable for Zoom, Bloomberg writes.

In the fourth quarter, the company projects revenues in the range of $ 806 to $ 811 million and adjusted earnings of $ 0.77 to $ 0.79 per share. Zoom also adjusted its forecast for the entire fiscal year for the third time – now the company plans to receive from $ 2.575 to $ 2.58 billion by the end of 2020.

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