Zoom’s net profits from Internet videoconferencing increased 12-fold between February and April over the same period last year, an unprecedented growth for a virtually unknown firm that has become ubiquitous with the COVID-19 pandemic.
During the first quarter of its fiscal year, the San Jose, California-based company had a turnover of $328 million, up 169% from $122 million in the same period in 2019, and earned $27 million, up 12 times from $2.2 million in April last year.
For their part, the shareholders of the videoconferencing company pocketed 10 cents per share in the past three months, a figure not comparable to last year because at that time Zoom had not yet been released on the stock market.
The company has become one of the most international symbols of the COVID-19 pandemic, as in a matter of weeks it has gone from having an almost marginal presence in the market to being a fundamental tool in the daily lives of millions of people.
Schools, companies and public institutions all over the world are holding the meetings they used to hold in person at Zoom, and the number of clients with more than ten users reached 265,400 in April, 354% more than a year ago.
Despite the company’s resounding success over the past few months, it has also come in for criticism on several fronts for its security flaws, which, for example, allow third parties to “sneak” into meetings they have not been invited to, and for problems with managing user privacy.
“The COVID-19 crisis has triggered demand for face-to-face interactions using Zoom. The number of users has grown rapidly as people have integrated Zoom into their lives, work and education,” said Zoom founder and CEO Eric Yuan as he presented the accounts.
For the fiscal year as a whole, the company projected revenues of between $1.775 billion and $1.8 billion.
Zoom’s good results, however, were lower than expected by analysts, and the company’s shares fell 2.81% to $202.59 per share in post-market electronic trading on Wall Street.