Zoom's Pandemic-Fueled Boom Continues

By Aaron Tilley 

Zoom Video Communications Inc. posted another quarter of record sales and again lifted its outlook as remote working and distance schooling drags on during the pandemic, driving heavy use of the videoconferencing app.

Zoom on Monday reported sales of $777.2 million in the latest quarter, up from $166.6 million a year earlier, as it posted a profit of $198.4 million. Analysts surveyed by FactSet had expected sales of $694 million and net income of $149 million for the three months ended October 31.

"We remain focused on the communication needs of our customers and communities as they navigate the current environment and adapt to a new world of work from anywhere using Zoom," Chief Executive Eric Yuan said. "We expect to strengthen our market position as we finish the fiscal year," he added.

The company, which went public last year, raised its full-year outlook for a third time during the pandemic, cementing its position as one of the biggest corporate winners from the shift to working from home and remote schooling.

Zoom said it now expects sales in the current financial year ending in January to reach around $2.58 billion, up from the previous quarter's guidance of sales reaching as much as $2.39 billion.

Zoom shares have surged amid the Covid-19 outbreak and are up about sevenfold this year. But shares were down around 4% in after-hours trading.

Write to Aaron Tilley at [e-mail]

(END) Dow Jones Newswires

November 30, 2020 16:52 ET (21:52 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.