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Despite security concerns and reports of possibly problematic ties to Chinese authorities, Zoom Video Communications remained a major beneficiary of the changes brought by the COVID-19 pandemic. Last year, video conferencing apps saw an unprecedented surge in usage, with Zoom as one of the most popular options available. The impressive growth continued in 2021, driving the company’s revenues to all-time highs.
According to data presented by Stock Apps, Zoom Video Communications generated nearly $2bn in revenue in the first half of 2021, more than double compared to the same period a year ago.
Quarterly Revenue Surpassed $1 Billion for the First Time
Despite many workers returning to their offices once fully vaccinated, companies worldwide continue using a hybrid work model, which has proven effective in keeping the business going during the pandemic and became popular with workers who embraced the new freedom of working from anywhere.
This enormous shift has allowed Zoom Video Communications to hold on to its pandemic gains. The company’s financial report showed Zoom saw its revenue skyrocket throughout the fiscal year ended January 31, 2021.
After an impressive 169% YoY jump in the Q1 FY2021, revenue growth accelerated to 355%, 367% and 369% in the second, third, and fourth quarters of the year. Statistics show that in the twelve months ended January 31, Zoom’s revenue amounted to $2.65bn, up from $623 million the previous year. Moreover, the video conferencing company ended the year with a net profit of $671 million, up from just $22 million in fiscal 2020.
The impressive growth continued in the FY2022, with the company’s revenue surging to $956 million in the first quarter, showing a massive 191% increase year-over-year. In the next three months, Zoom hit a new benchmark, with its quarterly revenue rising to over $1 billion for the first time.
Revenues Rise While Market Cap Drops
Analyzed by geography, the Americas remain Zoom’s largest market, with a 67% revenue share in Q2 FY2022. Statistics show users from this region generated $681 million in revenue, up from $454 million in the same period a year ago. EMEA countries ranked second with $205 million in revenue and a 20% share. The APAC region follows, with $135 million in revenue, respectively.
However, while revenues continue rising, the company’s stock price has been hugely affected by security concerns and reports of possibly problematic ties to Chinese authorities. According to YCharts, the market cap of the video conferencing company hit $76bn last week, which is 53% less than its all-time high of $161.5bn in October 2020.