Eric Yuan, chief executive of Zoom, predicts an increase in the company’s user base in the remaining year. The firm has seen a surge amid the Covid-19 pandemic with revenue increasing more than four fold in the second quarter. AFP
Eric Yuan, chief executive of Zoom, predicts an increase in the company’s user base in the remaining year. The firm has seen a surge amid the Covid-19 pandemic with revenue increasing more than four fold in the second quarter. AFP
Eric Yuan, chief executive of Zoom, predicts an increase in the company’s user base in the remaining year. The firm has seen a surge amid the Covid-19 pandemic with revenue increasing more than four fold in the second quarter. AFP
Eric Yuan, chief executive of Zoom, predicts an increase in the company’s user base in the remaining year. The firm has seen a surge amid the Covid-19 pandemic with revenue increasing more than four f

Zoom’s Q2 net profit eclipses 2019 earnings as revenue surges


Alkesh Sharma
  • English
  • Arabic

Zoom Video Communications said its second-quarter net profit exceeded its full-year earnings for 2019, driven by revenue growth amid the coronavirus-induced crisis.

The $186 million (Dh683.2m) earned during the period was also about 34 times the $5.5m recorded during the same period a year ago, the Nasdaq-listed company said in a regulatory filing on Monday.

The Nasdaq-listed company's revenue for the period reached $663.5m, more than four fold the previous year and exceeding Bloomberg’s average analyst estimates of $500m. Shares of the San Jose-based firm surged 26 per cent on Monday boosting the net worth of its chief executive Eric Yuan by $4.2 billion.

“Organisations are shifting from addressing their immediate business continuity needs to supporting a future of working anywhere, learning anywhere and connecting anywhere,” Mr Yuan said.

“Our ability to keep people around the world connected, coupled with our strong execution, led to [the] revenue growth.”

Zoom said the firm’s ability to acquire new customers and expand across its existing customer base “drove the company’s revenue”. At the end of the second quarter, it had nearly 370,200 customers, with more than 10 employees, a yearly increase of 458 per cent.

Large customers – companies that generated more than $100,000 in revenue for Zoom in the past year – more than doubled to 988 during the quarter.

The company said it increased its revenue outlook for the third quarter and the full financial year, with third quarter revenue to hover between $685m and $690m. For the full year, Zoom estimates revenue between $2.37bn and $2.39bn - which is more than three fold its 2019 earnings, Mr Yuan said.

The video communications platform has been adopted by businesses, schools, universities and individuals due to Covid-19 related movement restrictions and lockdowns. The company expects to increase its user base further in the remaining year.

“At Zoom, we strive to deliver a world-class, frictionless and secure communication experience for our customers across locations, devices and use cases,” Mr Yuan said.

Zoom shares, which started the year at around $69, closed at $410 on Monday. If the stock maintains a similar gain on Tuesday, Mr Yuan's fortune will surpass $20bn, according to Bloomberg data.

Zoom has joined forces with two large corporate customers in recent months, Exxon Mobil and Activision Blizzard, said Mr Yuan, boosting investors’ confidence.

“For the quarter, the year-over-year growth in revenue was primarily due to subscriptions provided to new customers, which accounted for approximately 81 per cent of the increase,” the company’s chief financial officer Kelly Steckelberg said on the conference call.

Zoom has seen a surge in its user base during the Covid-19 pandemic. Reuters
Zoom has seen a surge in its user base during the Covid-19 pandemic. Reuters

Subscriptions to existing customers accounted for 19 per cent of the revenue increase.

“This demand was broad-based across industry verticals, geographies and customer cohorts,” Ms Steckelberg said.

Company Profile

Name: JustClean

Based: Kuwait with offices in other GCC countries

Launch year: 2016

Number of employees: 130

Sector: online laundry service

Funding: $12.9m from Kuwait-based Faith Capital Holding

UAE currency: the story behind the money in your pockets
'The Batman'

Stars:Robert Pattinson

Director:Matt Reeves

Rating: 5/5

War

Director: Siddharth Anand

Cast: Hrithik Roshan, Tiger Shroff, Ashutosh Rana, Vaani Kapoor

Rating: Two out of five stars 

If you go

The flights

Fly direct to London from the UAE with Etihad, Emirates, British Airways or Virgin Atlantic from about Dh2,500 return including taxes. 

The hotel

Rooms at the convenient and art-conscious Andaz London Liverpool Street cost from £167 (Dh800) per night including taxes.

The tour

The Shoreditch Street Art Tour costs from £15 (Dh73) per person for approximately three hours. 

MATCH INFO

Juventus 1 (Dybala 45')

Lazio 3 (Alberto 16', Lulic 73', Cataldi 90 4')

Red card: Rodrigo Bentancur (Juventus)

Infiniti QX80 specs

Engine: twin-turbocharged 3.5-liter V6

Power: 450hp

Torque: 700Nm

Price: From Dh450,000, Autograph model from Dh510,000

Available: Now

10 tips for entry-level job seekers
  • Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
  • Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
  • Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
  • For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
  • Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
  • Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
  • Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
  • Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
  • Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
  • Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.

Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz

While you're here
UAE currency: the story behind the money in your pockets
COMPANY PROFILE

Name: Lamsa

Founder: Badr Ward

Launched: 2014

Employees: 60

Based: Abu Dhabi

Sector: EdTech

Funding to date: $15 million

While you're here
The specs

Engine: Four electric motors, one at each wheel

Power: 579hp

Torque: 859Nm

Transmission: Single-speed automatic

Price: From Dh825,900

On sale: Now

The specs
  • Engine: 3.9-litre twin-turbo V8
  • Power: 640hp
  • Torque: 760nm
  • On sale: 2026
  • Price: Not announced yet
SPEC%20SHEET%3A%20APPLE%20IPHONE%2014%20PRO%20MAX
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RESULTS

Men
1 Marius Kipserem (KEN) 2:04:04
2 Abraham Kiptum (KEN) 2:04:16
3 Dejene Debela Gonfra (ETH) 2:07:06
4 Thomas Rono (KEN) 2:07:12
5 Stanley Biwott (KEN) 2:09:18

Women
1 Ababel Yeshaneh (ETH) 2:20:16
2 Eunice Chumba (BRN) 2:20:54
3 Gelete Burka (ETH) 2:24:07
4 Chaltu Tafa (ETH) 2:25:09
5 Caroline Kilel (KEN) 2:29:14

UAE currency: the story behind the money in your pockets