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Zoom could be set to get even bigger next year

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(Image credit: zoom)
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Video conferencing tool Zoom (opens in new tab) has revealed the extent to which it has benefited from the coronavirus pandemic, after unveiling some seriously impressive financial results for the third quarter of the fiscal year 2021.

The firm reported that it took in $777.2 million during the quarter, up a staggering 367% year-on-year. 

Zoom posted similarly impressive results last quarter and expects revenue to at least quadruple year-on-year for the fourth quarter as well.

“We remain focused on the communication needs of our customers and communities as they navigate the current environment and adapt to a new world of work from anywhere using Zoom. We aspire to provide the most innovative, secure, reliable, and high-quality communications platform to help people connect, collaborate, build and learn on Zoom,” said Zoom founder and CEO, Eric S. Yuan. 

“Strong demand and execution led to revenue growth of 367% year-over-year with solid growth in non-GAAP operating income and cash flow in our third fiscal quarter. We expect to strengthen our market position as we finish the fiscal year with an increased total revenue outlook of approximately $2.575 billion to $2.580 billion for fiscal year 2021, or approximately 314% increase year-over-year.”

Zooming ahead

Of course, when Yuan talks of the “current environment,” he is referring, at least partly, to the coronavirus pandemic, which has resulted in a huge uptick (opens in new tab) in use for videoconferencing tools like Zoom.

Work collaboration, learning, and even socializing have come to rely on digital tools in the era of social distancing. As a result, Zoom has found itself in a competitive struggle with the likes of Microsoft Teams, Google Meet, and many other solutions to emerge as the industry leader.

Based on its latest financial results, Zoom is clearly performing well. In addition to its impressive revenue figures, the company saw the number of customers with more than 10 employees increase by 485% in the third quarter compared to the same period 12 months ago.

Barclay has been writing about technology for a decade, starting out as a freelancer with ITProPortal covering everything from London’s start-up scene to comparisons of the best cloud storage services.  After that, he spent some time as the managing editor of an online outlet focusing on cloud computing, furthering his interest in virtualization, Big Data, and the Internet of Things.