Zoom Posts 2Q Revenue of More Than $1 Billion; Beats Wall Street Targets

By Maria Armental

Zoom Video Communications Inc. reported more than $1 billion in July-quarter revenue, fueled by strong demand for its videoconferencing services that became ubiquitous during the pandemic.

Zoom's second-quarter profit rose to about $317 million from about $186 million a year earlier, while revenue reached $1.02 billion, up from $663.5 million a year ago.

The results beat Zoom's and Wall Street projections, according to FactSet.

The San Jose, California-based company said it now expects annual revenue to reach $4.01 billion to $4.02 billion, compared with its earlier view of $3.98 billion to $3.99 billion, and $4.75 to $4.79 a share in adjusted profit, compared with its previous range of $4.56 to $4.61 a share.

As offices start to reopen, analysts are raising questions about Zoom's ability to retain paying customers and sustain the kind of growth it experienced during the pandemic.

On Monday, Zoom said it now had 504,900 customers, up from about 497,000 in the April quarter, and said 2,278 customers generated more than $100,000 in revenue over the past 12 months, up from about 1,999 in the previous quarter.

Zoom has been adding features and services and, in July, it agreed to buy cloud-based customer-service software provider Five9 Inc., a deal that Zoom said would allow it to tap into a $24 billion contact-center market.

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

August 30, 2021 16:48 ET (20:48 GMT)

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