Zoom - one of the biggest won pandemics. Profit up by 3373%

If you thought the medical companies were the biggest winners of the coronavirus pandemic, then you are right, but only partially. Technology companies offering, among others, tools for remote work. One of them is Zoom, which runs the teleconference application of the same name.

Half a year with the coronavirus pandemic, some businesses have shaken their foundations, and it has allowed others to record profits that previously were not even in the sphere of dreams. The most popular was medical companies that sold masks, disposable gloves, disinfectants or other similar agents. Soap and cleaning products manufacturers were also doing great.

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Zoom for schools and business

The demand for all remote services has also increased. Most of all, however, many companies decided to remotely work their office workers, which - at least for some of them - required the use of new IT tools. One of them is Zoom - an application that allows teleconferences. It was used not only by companies, but also by schools and universities that decided to use distance learning. This significantly translated into the profit of the company, which so far has developed rapidly, but owes the last six months to a jump in virtually all indicators.

The just presented report for the second quarter of 2020 beats the eyes with large numbers. Revenues amounted to USD 663,5 million and were up 355% compared to the same period in the previous year. In the middle of the year, Zoom was used by 370. companies. This translated into a net profit of $ 185,7 million, or $ 0,63 per share. If we compare it with the profit in the second quarter of 2019, which amounted to USD 5,5 million, it turns out that the growth dynamics reaches an exorbitant 3373%.

Eric S. Yuan, CEO of Zoom

“Companies and organizations are moving from meeting their current business continuity needs to supporting the future of working anywhere, learning anywhere, and communicating anywhere on the Zoom platform. At Zoom, we strive to provide our clients with communication between locations and devices that is world-class, seamless and secure " - emphasizes the founder and president of Zoom Eric S. Yuan.

A good quarter will be no exception

However, this is not the end of good news for shareholders. It is already known that the development of Zoom will not stop quickly. At least not in the next quarter. The company estimates that in the third quarter of 2020, revenues will be in the range of USD 685-690 million. At the end of the year, they are expected to reach US $ 2,39 billion, an increase of 284%.

Investors seem to agree with this optimism. After the announcement of the results of the second quarter of 2020, the Zoom company's share price shot up by 40,7%. On September 1, 2020, the price closed at USD 457,6, which is an absolute record in the company's listing history. Suffice it to say that at the end of 2019, each Zoom share was priced at $ 68,04. The company debuted on the stock exchange on April 18, 2019 at an issue price of $ 36.

Zoom stock chart, D1 interval. Source: xNUMX XTB.

Most of the shares are held by the company's president and founder, an American entrepreneur from China, Eric S. Yuan, whose fortune is currently valued at $ 23 billion. Just a one-day rise in the stock price after the publication of brilliant results added the value of his portfolio by $ 6,6 billion.