Zoom, a reputed video conferencing company, recorded a better than expected earnings in the first quarter of the year, with the increment standing at 12%, and the forecast for the future is being deemed as optimistic.
According to the report some of the numbers that are seen are the earnings have gone by almost 3 percent for every share, other than for certain items and the total revenue generated by the company stood at $122 million though it was expected to be $111.7 million according to the predictions made by Refinitiv.
The main reason why the revenue of the company skyrocketed was due to the fact that many businesses of different sizes decided to start the software of the company, which also became more widespread and extensive in usage as many devices like smartphones started supporting it. This has led to increased expectations in the second quarter. The shares are supposed to increase by 1 to 2 per cent per share and the revenue is supposed to stand at around $129 million to $130 million. All this comes in the light of the fact that Refinitiv, a serious analyst thought that Zoom would only break even in the upcoming quarters.
There are many companies that have gone public recently but very few of them have been able to be profitable from the word go itself. Zoom was one of them with profits from the month of April itself. According to experts, there were a number of factors that led to the amazing performance. The sales and marketing team worked with a lot of cooperation and the products supplied by them to their customers were much more superior to the ones that their competitors were selling. Thus, the market opportunity was much better and highlighted their performance with an increment of almost 120% when compared to the price it went IPO at, that is, at $36.