You might use Zoom for free, but companies are paying for it — pushing the stock to new heights

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 31 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 97%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

While most individuals are using Zoom for free, more companies are signing on for big-money deals -- and that's the key for the company's long-term prospects, writes tpoletti.

Zoom Video Communications Inc. has become a household name during the coronavirus pandemic, with millions of people using its online-video service for free — but it still needs companies to pay for it in order to survive.

Zoom said that it added 219 customers in the second quarter that spent more than $100,000 each in the trailing 12-month period, its best quarter ever for attracting big-revenue customers. Zoom is approaching 1,000 customers of that size, reaching 988 as of the quarter’s end on July 31. Smaller customers are growing fast at Zoom too, but they could have a more volatile effect on Zoom’s financials. Zoom ended the quarter with about 370,000 customers that have 10 employees or more, adding 105,000 of those in the second quarter, and pushing the smaller companies to 36% of Zoom’s revenue, up from 30%.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

tpoletti Is the WFH climate something that's going to take hold and increase over time? Or will it see a sharp dropoff after this pandemic?

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stocks making the biggest moves after hours: Zoom Video, Eastman Kodak, Tesla & moreSee which stocks are posting big moves after the bell. Follow Breaking_Birdie for everything golf.
Source: CNBC - 🏆 12. / 72 Read more »