Wednesday, March 3, 2021

Zoom Posts Amazing Earnings, Questions Remain About Future Growth

Zoom, the video conferencing company that catapulted to popularity during the COVID-19 pandemic, has reported a revenue of US$882.5 million (~RM3.6 billion) in the last three months of 2020 – a 370% jump compared to the same period the year before, the BBC said.

To understand the magnitude of this change, consider that Zoom’s profit in 2019 only amounted to US$21.7 million (~RM88.1 million). The following year, it rapidly ballooned to US$671.5 million (~RM2.7 billion). According to the BBC, the company’s total revenue in 2020 was US$2.6 billion (~RM10.6 billion) or an astounding increase of 326%.

But with even those numbers, Zoom can hardly rest on its laurels. People around the world are being vaccinated and lockdowns are being slowly lifted. Analysts question whether the platform can maintain its meteoric growth if work from home happens to be only a momentary trend.

And there are some ominous signs for the company. According to CNBC, Zoom finance chief Kelly Steckelberg conceded that the company was losing customers at a higher rate than before the pandemic – though it also lost fewer customers than expected.

Analysts say the company is also facing stiffer competition from Microsoft, Google, and Cisco now. Time will tell if Zoom has what it takes to tango with the big boys.

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