Remote Work Helps Zoom Quadruple Revenue in Q2

Zoom has posted the results of what was expected to be a gigantic second quarter, and the web conferencing giant didn’t disappoint.

The company reported an exponential increase in users. Although it did not detail the exact number, the company said it has 370,200 customers with more than 10 employees, In April, Zoom said it had 265,400 such customers. At this time last year, that number was just 66,300.

That’s a year-over-year increase of 458%, Zoom reported.

This rapid increase in users is due in part to the COVID-19 pandemic and organizations’ immediate business continuity needs as well future remote work and distance learning demands, CEO Eric S. Yuan said in a statement.

“Organizations are shifting from addressing their immediate business continuity needs to supporting a future of working anywhere, learning anywhere, and connecting anywhere on Zoom’s video-first platform,” Yuan said. “At Zoom, we strive to deliver a world-class, frictionless, and secure communication experience for our customers across locations, devices, and use cases.”

That growth lead to total second-quarter revenues of $663.5 million, a 355% year-over-year increase

With that growth, Zoom increased its fiscal 2021 revenue outlook to up to up to $2.39 billion, reflecting a potential 284% year-over-year increase.

Zoom’s success in the quarter comes despite well-documented security concerns about the platform. Since then, the company has undergone a three-month binge on security enhancements to address those issues and has promised end-to-end encryption for all users.

Since then, Zoom has gotten back to work to improve other aspects of the platform, including Zoom for Home displays, expansion of Zoom Phone, Hardware-as-a-Service plans, integrations with other services and other features.

Zoom is now also facing some serious competition from platforms like Microsoft Teams, Google Meet, BlueJeans, Lifesize, Webex and several other videoconferencing players that are angling to capitalize on the demand for remote conferencing technology.