Zoom Booms as Pandemic Drives Millions To Its Video Service

Zoom Video Communications is rapidly emerging as the latest internet gold mine as millions of people flock to its conferencing service to see colleagues, friends, and family while tethered to their homes during the pandemic.

Tuesday’s release of the once-obscure company’s financial results for the February-April period provided a window into the astronomical growth that has turned it into a Wall Street star.

Zoom’s revenue for its fiscal first-quarter more than doubled from the same time last year to $328 million, resulting a profit of $27 million — up from just $198,000 a year ago.

The numbers exceeded analysts’ already heightened expectations, providing another lift to a rocketing stock that has more than tripled in price so far this year. After a big runup leading up to Tuesday’s highly anticipated announcement, Zoom’s stock gained nearly 3% in extended trading to $213.60 — more than five times the company’s initial public offering price of $36 less than 14 months ago.

The surge has left Zoom with a market value of about $59 billion — greater than the combined market values of the four largest U.S. airlines, which have seen their businesses hammered by the coronavirus outbreak that has dramatically curtailed travel.

“We were humbled by the accelerated adoption of the Zoom platform around the globe,” said CEO Eric Yuan, who co-founded the company nine years ago.