Zoom Video Communications’ second-quarter net profit rose more than 70.6 per cent year-on-year as the company achieved its first billion-dollar revenue quarter, underpinned by the increasing demand for video conferencing as companies ever more adopted hybrid work models.
The California-based company’s net profit attributable to shareholders climbed to $316.9 million, almost $131.2m more than the same period last year.
Revenue during the three-month period to July 31 increased 54 per cent on an annualised basis to $1.02 billion. It was nearly 6.8 per cent up on a quarterly basis.
"We achieved our first billion-dollar revenue quarter while delivering strong profitability and cash flow,” Zoom founder and chief executive Eric Yuan said.
The May-July period marked several milestones “on our expansion beyond the UC [unified communications] platform”, said Mr Yuan.
The Nasdaq-listed company, which has its headquarters in California, raised its revenue outlook for the third quarter ending in October this year and the 2021-2022 financial year.
Third-quarter revenue was forecast in the range of $1.01bn and $1.02bn while full-year revenue is expected to be between $4bn and $4.02 – about 55 per cent more than its financial earnings in the last financial year.
Zoom’s share price rose almost 2 per cent to $347.5 a share on Monday. But it plunged nearly 11.4 per cent to $308 in after-hours trading. The company’s stock has gained almost 7 per cent over the past 12 months.
Zoom said its second quarter revenue growth was driven by “acquiring new customers and expanding across existing customers”.
As of July 31, the company had nearly 504,900 paid customers with more than 10 employees, up by almost 36 per cent from the same period last fiscal year.
Zoom, which became an essential service for office meetings and family gatherings during the Covid-19 pandemic, invested $82.3m in research and development in three months to July 31, almost 93 per cent more than the prior year period. It was more than 8 per cent of the total revenue earned during the quarter.
The company’s operating cash flow was $468m for the second quarter, nearly 66.7m more than the same period last year.
Total cash and marketable securities stood at $5.1bn on July 31.
Industry experts have said Zoom's sizeable cash reserves will help it acquire new start-ups and competitors in the space of video conferencing.
In its largest-ever acquisition, Zoom last month agreed to purchase cloud call centre software provider Five9 for $14.7bn as part of its strategy to adapt to the post-pandemic world.
It is the fourth deal by Zoom since the start of the Covid-19 pandemic, according to Bloomberg.
In June, it joined forces with German start-up Karlsruhe Information Technology Solutions-kites, a translation software maker. It was also part of an alliance that purchased a minority stake in a software firm Assembled in March and acquired Keybase Financial Group, a secure messaging and file-sharing service, last year.
Zoom’s biggest competitors include Google's Meet and Microsoft's Teams platforms. It is reportedly also developing an email facility that will compete with Google's Gmail and Microsoft's Outlook.
MATCH DETAILS
Chelsea 4
Jorginho (4 pen, 71 pen), Azpilicueta (63), James (74)
Ajax 4
Abraham (2 og), Promes (20). Kepa (35 og), van de Beek (55)
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
MATCH INFO
Europa League semi-final, second leg
Atletico Madrid (1) v Arsenal (1)
Where: Wanda Metropolitano
When: Thursday, May 3
Live: On BeIN Sports HD
LILO & STITCH
Starring: Sydney Elizebeth Agudong, Maia Kealoha, Chris Sanders
Director: Dean Fleischer Camp
Rating: 4.5/5
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The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
Results
5pm: Reem Island – Conditions (PA) Dh80,000 (Turf) 1,600m; Winner: Farasah, Antonio Fresu (jockey), Musabah Al Muhairi
5.30pm: Sir Baniyas Island – Maiden (PA) Dh80,000 (T) 1,400m; Winner: SSR Ghazwan, Antonio Fresu, Ibrahim Al Hadhrami
6pm: Wathba Stallions Cup – Handicap (PA) Dh70,000 (T) 1,400m; Winner: Astral Del Sol, Sean Kirrane, Ibrahim Al Hadhrami
6.30pm: Al Maryah Island – Maiden (PA) Dh80,000 (T) 2,200m; Winner: Toumadher, Dane O’Neill, Jaber Bittar
7pm: Yas Island – Handicap (PA) Dh80,000 (T) 2,200m; Winner: AF Mukhrej, Tadhg O’Shea, Ernst Oertel
7.30pm: Saadiyat Island – Handicap (TB) Dh80,000 (T) 2,400m; Winner: Celestial Spheres, Gary Sanchez, Ismail Mohammed
Ammar 808:
Maghreb United
Sofyann Ben Youssef
Glitterbeat
Results:
6.30pm: Mazrat Al Ruwayah (PA) | Group 2 | US$55,000 (Dirt) | 1,600 metres
Winner: AF Al Sajanjle, Tadhg O’Shea (jockey), Ernst Oertel (trainer)
7.05pm: Meydan Sprint (TB) | Group 2 | $250,000 (Turf) | 1,000m
Winner: Blue Point, William Buick, Charlie Appleby
7.40pm: Firebreak Stakes | Group 3 | $200,000 (D) | 1,600m
Winner: Muntazah, Jim Crowley, Doug Watson
8.15pm: Meydan Trophy Conditions (TB) | $100,000 (T) | 1,900m
Winner: Art Du Val, William Buick, Charlie Appleby
8.50pm: Balanchine Group 2 (TB) | $250,000 (T) | 1,800m
Winner: Poetic Charm, William Buick, Charlie Appleby
9.25pm: Handicap (TB) | $135,000 (D) | 1,200m
Winner: Lava Spin, Richard Mullen, Satish Seemar
10pm: Handicap (TB) | $175,000 (T) | 2,410m
Winner: Mountain Hunter, Christophe Soumillon, Saeed bin Suroor
