Zoom Video Communications’ net profit surged more than 741 per cent in the first quarter, compared with a year ago, as companies increasingly adopted hybrid work models and demand for video conferencing increase, boosting the company’s revenue.
Net profit to shareholders surged to $227 million, from $27m in the same period a year ago, the Nasdaq-listed company, said in a regulatory filing.
Revenue during the February-April period increased 191 per cent on an annualised basis to $956.2m, beating analysts’ estimates of $906m, according to Refinitiv.
“We kicked off the fiscal year with a very strong first quarter … with strong profitability and cash flow,” said Zoom founder and chief executive Eric Yuan.
“Our steadfast commitment to empowering customers to work and learn from anywhere with our expansive, innovative and frictionless video communications platform continued to drive our results,” he added.
Zoom’s shares closed nearly 1.2 per cent lower at $327.7 on Tuesday. They rose 2 per cent in after-hours trading to $334.4 a share.
The company’s stock has gained more than 57 per cent over the past 12 months.
Zoom raised its revenue outlook for the second quarter ending in July this year and the 2021-2022 financial year.
Second-quarter revenue was forecast in the range of $985m and $990m while full-year revenue is expected to be between $3.97 billion and $3.99bn – about 50 per cent more than its financial earnings in the last financial year.
"We are pleased to raise our total guidance range for the full fiscal year … we are energised to help lead the evolution to hybrid work that allows greater flexibility, productivity, and happiness to both in-person and virtual connections," said Mr Yuan.
“We have also opened our technology portfolio to developers … work is no longer a place, it’s a space where Zoom serves to empower your teams to connect and bring their best ideas to life,” he added.
Zoom first quarter revenue growth was underpinned by new customers and expanding across existing customers.
By the end of the first quarter, the company had nearly 497,000 paid customers with more than 10 employees, up by almost 87 per cent from the same period last fiscal year.
The company invested 65.2m in research and development in three months to April 30, nearly 6.8 per cent of the total revenue earned during the quarter. It is reportedly developing an email facility that will compete with Google's Gmail and Microsoft's Outlook.
The company’s operating cash flow was $533.3m for the first quarter, nearly 274.3m more than the same period last year.
Total cash and marketable securities stood at $4.7bn on April 30.
Industry experts have said Zoom's sizeable cash reserves will help it acquire new start-ups and competitors in the space of video conferencing.
Five expert hiking tips
Always check the weather forecast before setting off
Make sure you have plenty of water
Set off early to avoid sudden weather changes in the afternoon
Wear appropriate clothing and footwear
Take your litter home with you
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
More from Armen Sarkissian
Record breaker
- The most total field goals made in NBA history, as well as the most consecutive games scoring 10 or more points
- The only player in NBA history to reach 10,000 rebounds and 10,000 assists
- Four-time regular season MVP and four-time NBA Finals MVP
- Six-time NBA All-Defensive selection. Rookie of the Year in 2004
- The most All-NBA selections with 21 in a row, including a record 13 first team selections
- The most consecutive All-Star selections with 21
- The only player to play alongside his son; Bronny James was chosen by the Lakers in the 2024 NBA draft
STAY%2C%20DAUGHTER
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Pad Man
Dir: R Balki
Starring: Akshay Kumar, Sonam Kapoor, Radhika Apte
Three-and-a-half stars
Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
The%20specs
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Fight Night
FIGHT NIGHT
Four title fights:
Amir Khan v Billy Dib - WBC International title
Hughie Fury v Samuel Peter - Heavyweight co-main event
Dave Penalosa v Lerato Dlamini - WBC Silver title
Prince Patel v Michell Banquiz - IBO World title
Six undercard bouts:
Michael Hennessy Jr v Abdul Julaidan Fatah
Amandeep Singh v Shakhobidin Zoirov
Zuhayr Al Qahtani v Farhad Hazratzada
Lolito Sonsona v Isack Junior
Rodrigo Caraballo v Sajid Abid
Ali Kiydin v Hemi Ahio
The Indoor Cricket World Cup
When: September 16-23
Where: Insportz, Dubai
Indoor cricket World Cup:
Insportz, Dubai, September 16-23
UAE fixtures:
Men
Saturday, September 16 – 1.45pm, v New Zealand
Sunday, September 17 – 10.30am, v Australia; 3.45pm, v South Africa
Monday, September 18 – 2pm, v England; 7.15pm, v India
Tuesday, September 19 – 12.15pm, v Singapore; 5.30pm, v Sri Lanka
Thursday, September 21 – 2pm v Malaysia
Friday, September 22 – 3.30pm, semi-final
Saturday, September 23 – 3pm, grand final
Women
Saturday, September 16 – 5.15pm, v Australia
Sunday, September 17 – 2pm, v South Africa; 7.15pm, v New Zealand
Monday, September 18 – 5.30pm, v England
Tuesday, September 19 – 10.30am, v New Zealand; 3.45pm, v South Africa
Thursday, September 21 – 12.15pm, v Australia
Friday, September 22 – 1.30pm, semi-final
Saturday, September 23 – 1pm, grand final
UAE currency: the story behind the money in your pockets
Company Profile
Company name: Yeepeey
Started: Soft launch in November, 2020
Founders: Sagar Chandiramani, Jatin Sharma and Monish Chandiramani
Based: Dubai
Industry: E-grocery
Initial investment: $150,000
Future plan: Raise $1.5m and enter Saudi Arabia next year
VEZEETA PROFILE
Date started: 2012
Founder: Amir Barsoum
Based: Dubai, UAE
Sector: HealthTech / MedTech
Size: 300 employees
Funding: $22.6 million (as of September 2018)
Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC
