Zoom shares jumped 41 percent on Tuesday, raising the market cap for the videoconference software business to $129 billion after sales and earnings flew past analyst forecasts.
The rally contributed a market cap of $37 billion to Zoom, which went public in April 2019 and was worth about $16 billion after its first trading day. Perhaps the organization was the biggest corporate winner of the coronavirus pandemic, as workers across the globe switched to video chat technology to remain linked to employees, clients and partners.
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Time sales rose 355 per cent to $663.5 million, beating the analysts’ average estimate of $500.5 million, according to Refinitiv. Reported earnings per share of 92 cents more than twice the forecasts for profit by analysts, or 45 cents per share. For the time, Zoom’s net income for the last six quarters combined was more than triple its profit.
Zoom’s number of customers with $100,000 or more in annual sales more than doubled to 988 from a year earlier. On the earnings call, CEO Eric Yuan stressed Exxon, Activision and ServiceNow.
“With the pandemic persisting, we are committed to work hard and are humbled by our role of enabling communications worldwide during this challenging time,” Yuan said.
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Even Zoom increased its outlook for the full fiscal year of 2021. Revenue would range from $2.37 billion to $2.39 billion, resulting in mid-range growth of 282 per cent, exceeding the average analyst revenue estimate of $1.81 billion.
Zoom is currently one of the 20 most successful U.S. tech firms, with a market value that is greater than IBM and more than twice the size of VMware.