Zoom Video Communications Inc. Coronavirus has become a household name during the virus epidemic, with millions of people using its online-video service for free – but companies still need to pay for it to survive.
On Monday, it proved that happening – and then some. Zoom ZM,
Another surprising quarter reported as consumers, schools and businesses of all types continue to use the service while sheltering in place, sending shares up to 22% in later business. While most individuals are using Zoom for free, more companies are signing big-money deals.
And Activision Blizzard Inc. ATVI,
– Monday afternoon during a conference. Exxon is using Zoom as its communication platform for its teams, customers and partners worldwide, while Activision plans to replace its legacy videoconferencing products with Zoom.
Zoom said it added 219 customers in the second quarter, spending more than $ 100,000 each quarter over a 12-month period, the best quarter ever to attract large-revenue customers. Zoom is approaching 1,000 customers of that size, reaching 988 by the end of the quarter on 31 July.
Zoom also stated that it is ServiceNow Inc. Expanded on its deal with,
, Signing a cloud-software company for a Zoom-phone deal, replacing the company’s system legacy PBX system; With more employees working at home, those PBX systems often sit idle, while employees use their phones for work. Zoom expanded that service internationally in the second quarter and introduced a hardware-as-a-service service, which would allow it to sell to larger corporate customers on more services, and thus more sales.
“We continue to grow in a period of tremendous opportunity with both new customers as well as existing customers and webinars in particular,” Zoom’s chief financial officer Kelly Stuckelberg told analysts. “We have actually signed our largest zoom phone deal in Q2. So exciting that the constant speed is seen. ”
Small customers on zoom are also growing rapidly, but they can have a more volatile effect on the financials of zoom. Zoom ended the quarter with about 370,000 customers, with 10 employees or more, adding 105,000 in the second quarter, pushing smaller companies up to 36% of Zoom’s revenue above 30%.
But officials acknowledged that those customers are showing a greater tendency to “churn” for other services, and they may be more susceptible to price fluctuations by paying monthly rather than annually. They are also the most obvious targets for Zoom rivals – such as Alphabet’s Google Meet GOOG,
, MSFT of Microsoft Corp,
Teams and WebEx from Cisco Systems Inc. CSCO
– to poach.
By closing more big-money deals, expanding offerings beyond videoconferencing, and expanding the base of small corporate clients, Zoom continues to prove that it continues to be a force even after the epidemic runs its course. Yuan predicted that even though everyone would be working from home for a foresighted future, the nature of work changed dramatically when people returned to office which would still make Zoom an important part of the daily routine.
“If you look at a lot of companies, they are very big [open] Space, I think, may not work anymore in the future. “He also said that employees can shift to the office two or three days a week, work at home on other days, and many small offices with few workers would not require much. “It’s very, very likely that it’s hybrid,” he said.
In fact, as the future of the work is more likely that many are now experiencing, Zoom is set to continue to reap the benefits.