Its daily peak users surged significantly with a report showing an unprecedented growth from 10 million users in December 2019 to 100 million users in April 2020.
Zoom Video Communications Inc (NASDAQ: ZM), a video conferencing company is set to make waves with its stocks in the coming year following its upcoming listing on S&P 500. The company has already staged a massive growth this year, thanks to the virtual meetings on its platform accelerated by the COVID-19 global pandemic.
Its revenue according to a report surged by over 360% to $777 million in the third quarter of the year compared to the same period last year. Its performance has forced the company to adjust its outlook for the fourth quarter and that of the full fiscal year expected to be around $2.58 billion.
Just as most of the widely known big companies, Zoom went public in 2019 with a value of $9 billion after amassing around $356.8 million in its IPO. The company has seen a lot of progress since it went public with one of its best moments seeing the stock value rising from $36 to $66 in just 24 hours. That being said, Zoom has shown a lot of resilience and flourished with its utility in a period when the majority of companies are cramping down following the COVID-19.
At the time of writing, in the pre-market, ZM stock is 4.56% up, trading at $424.54.
Its daily peak users surged significantly with a report showing unprecedented growth from 10 million users in December 2019 to 100 million in April 2020. Its market capitalization surged to $50 billion with Nasdaq listing its stock. The rise in daily users is obviously due to the pandemic that forced companies to close down their central offices and rely on virtual platforms for meetings.
Universities in some countries took advantage of virtual platforms to continue their educational lessons while students participated in their homes. Also, churches resorted to online services which all contributed to the success of the Zoom platform.
The founder and CEO of Zoom, Eric S. Yuan in response to the 169% rise in revenue in the three months that ended in April 2020 revealed that the COVID-19 caused the higher demand for face-to-face interaction using zoom. Zoom has been integrated into homes and workplaces with a lot of people getting exposed to it as a video conferencing platform. The demand for Zoom stocks is not only high in the US but also globally as it is expected that the price would hit a different height after its listing on the S&P 500 is successful.
Zoom was launched in December 2012. Since its inception, the platform was able to successfully sell its functions with about 400,000 users a month after being launched. As of May 2013, its users had increased to 1 million. Zoom has a user-friendly interface with its free account supporting up to 100 devices with 40 minutes time restriction.
Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
