Zoom growth explodes in coronavirus work world

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The surge left Zoom with a market value of about $59 billion through Tuesday - greater than the combined market values of the four largest USA airlines, which have seen their businesses hammered by the coronavirus outbreak that has dramatically curtailed travel. User numbers have surged from 10 million at the start of the year, with the app now hosting 300 million daily meeting participants.

The dramatic uptake has the potential to change the firm's path. In March this year, the company had forecast revenues to be in the range of Dollars 905.0 million and USD 915.0 million for the full year.

Founded by chief executive Eric Yuan, Zoom has done its name justice and soared in value in a remarkably short space of time.

Mr Yuan didn't intend to create Zoom for the masses.

Zoom's problems with privacy and security are well-documented.

The U.S. technology company tops estimates for earnings and revenue in the first quarter.

"Immediately during the crisis, our long-time partner, AWS and its CEO, Andy Jassy, enabled us to meet this rapidly increasing demand", Yuan said. Zoom also upgraded its full-year guidance for revenue by nearly 100%. That shot to more than $58bn on Tuesday.

However, it is not smooth sailing for Zoom in all countries.

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Zoom said the number of paying customers, with more than 10 employees increased to 265,400 at the end of the first quarter, a quarter-on-quarter rise of 225 per cent.

It also turned a profit of $27m in the quarter - more than it made in all of the prior financial year. There were also 769 customers contributing more than $100,000 in the previous 12 months, a figure that was up by 90pc.

End-to-end encryption will not be available for free users While announcing the feature, Yuan said that the company wants to keep this feature away from free users so that it can help law enforcement agencies in case its platform is misused. Zoom was also confronted with accusations of privacy violations in Q1.

Revenue came in at $328 million, up 169% year-over-year, with earnings per share at $0.20.

The company said its expects adjusted profit in the fiscal year will be $355 million to $380 million, or $1.21 to $1.29 a share.

With the surge in remote networking services such as Zoom, Teams and Slack expected to continue post-pandemic as businesses adapt to a new more physically distanced "normal", there is likely to be an increase in takeover activity.

"The stakes are higher and the competition's getting tougher, so we'll see", says Ryan Koontz, managing director at Rosenblatt Securities.

"Given the scale at which we operate and the importance of the communications happening on our platform, there is no time for delay and no room for error", Yuan had said in a statement. "They have this awesome brand. now they have to leverage that brand and figure out which markets they're going to go after".

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