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Zoom, the new gold mine of the Internet with the pandemic

by magictr
June 3, 2020
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Zoom, the new gold mine of the Internet with the pandemic
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Zoom, nouvelle mine d’or d’Internet avec la pandémie

Zoom, nouvelle mine d’or d’Internet avec la pandémie

The revenues of Zoom for the quarter from February to April, the first of its fiscal year, have more than doubled compared to the same period last year to reach $ 328 million, while its profit amounted to $ 27 million, compared to only 198 000 $ a year ago.

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June 2, 2020 18h11

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Zoom, the new gold mine of the Internet with the pandemic

Michael Liedtke

Associated Press

SAN RAMON — Zoom Video Communications is becoming the new gold mine of the Internet, as millions of people flock to his service conference to discuss with colleagues, friends and family while being confined to their homes during the pandemic.

The publication on Tuesday of the financial results of the company still obscure there not so long ago, has opened a window on the astronomical growth that has made it a star on Wall Street.

The revenues of Zoom for the quarter from February to April, the first of its fiscal year, have more than doubled compared to the same period last year to reach $ 328 million, while its profit amounted to $ 27 million, compared to only 198 000 $ a year ago.

The figures have exceeded expectations already increased analysts, providing a new impulse to an action whose value has more than tripled so far this year. After the growth recorded in the hours that preceded the long-awaited announcement Tuesday, the action of Zoom took another 3.5 per cent in transactions after the session.

This progress gives Zoom a market value of approximately $ 59 billion — greater than that of the four largest u.s. airlines as a whole, the latter having been hammered by the outbreak of coronavirus, which has significantly reduced travel.

A boom and a few problems

“We were filled with humility with the accelerated adoption of the platform Zoom in the world,” said ceo, Eric Yuan, who co-founded the company nine years ago.

The boom and Zoom is occurring despite privacy concerns that have allowed foreigners to make appearances unsolicited — and sometimes rude — when videoconferencing to other people.

The concerns have prompted some schools to stop using Zoom for online courses, which are generalized since February, even if the company’s efforts to improve the security of the service have convinced some of them to come back. According to the company, more than 100 000 schools in the world are now using Zoom for online courses.

But the simplicity of the privacy controls has also helped to make Zoom a service that is extremely easy to use, one of the reasons why it has become a medium that is so popular to organize online courses, business meetings, and five-to-seven virtual after most of the States have begun to order people to stay at home to reduce the spread of the COVID-19.

Zoom also offers a free version of its service, another factor behind its popularity at a time when approximately 40 million people in the United States have lost their jobs since mid-march, which makes us fear the worst economic downturn since the end of the Great Depression of the 1930s.

The corporation of San Jose, California, has always drawn the bulk of its money out of companies who subscribe to a more sophisticated version of its service, traditionally used for business meetings between the employees working in offices far away from each other.

But the closure caused by the pandemic has transformed Zoom into a tool for the employees that worked together in the same space, but are forced for some months to telework.

At the end of April, Zoom has 265 400 business customers with at least 10 employees, more than quadrupled compared to the same period last year.

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