Popular video conferencing app Zoom has seen its revenue skyrocket as second-quarter profits doubled as a result of the coronavirus pandemic.
Zoom’s revenue leapt from 355% to $663.5( £496.3m) for three months which ends in July 2020, beyond analysts expectation of $500.5m.
The video conferencing became an all essential tool which enhances remote work between employers and employees
Its profit earnings rose to $186m, whereas buyer development soared to 458%, in comparison with the identical interval in the corresponding year 2019.
Zoom’s shares hit an excessive report on Monday, closing at $ 325.10 because the agency raised its annual income forecast by greater than 30% to the vary of $2.37bn-$2.39bn, from its earlier projection of $1.78bn – $1.80bn.
Key to Zoom’s success was its ability to add paying customers – high -budget corporate clients versus those that use its services for free.
Zoom’s and other rivals companies Cisco Webex and Microsoft Teams, have all seen a surge in the usage of their video conferencing platform since the beginning of coronavirus lockdown measures were imposed by multiple countries in March 2020.
Its soaring popularity has strained its infrastructure, with some outages last week as schools in the US resumed classes virtually.
Its reputation was dented as hackers hijack meetings and exposed some safety flaws, revealing that the firm has sent user data to Facebook, has wrongly claimed the app had end- to end- encryption which allows hosts to track attendees.
Zoom has earlier been confronted by political scrutiny for its ties to China where it has more than 700 staff, including most of its product development team which has prompted a warning that the app isn’t fit for government use
