Zoom said Tuesday that its revenue increased by 169% from the prior year to $328 million for the three months ending in April amid coronavirus pandemic.
Zoom became popular at the beginning of this year, as millions of people in lockdown began using it to host events ranging from birthday parties to religious events and even to cabinet meetings.
There were roughly 265,400 companies with more than 10 employees using its platform, a 354% increase from the year prior. Zoom “deployed millions of licenses for new customers,” CEO Eric Yuan said.
Shares of the company rose nearly 4% in after-hours trading Tuesday following the earnings report. As of Tuesday’s close, the stock had tripled since the beginning of the year.
Eric Yuan said in a statement: “The COVID-19 crisis has driven higher demand for distributed, face-to-face interactions and collaboration using Zoom,
“Work-from-home and social distance initiatives have meaningfully accelerated the adoption and traffic on the Zoom video communications platform.”
He added that the pandemic has also resulted in a big spike in the number of free users, who can host calls up to 40 minutes long before being asked to pay.