The boss of the video chat service company Zoom, Eric Yuan, predicts that the company’s sales will increase 40% to reach US $ 3.7 billion.
Quoting the BBC on Tuesday (2/3/2021) the forecast pushed the company’s shares up more than 6% in after-hours trading in New York. Although Yuan does not expect the company’s growth to be the same as last year, he is optimistic that the business will still be strong.
The company’s sales in the last three months of 2020 increased 370% compared to the same period in 2019, reaching US $ 882.5 million.
“The fourth quarter marks a strong end to an unprecedented year for Zoom. As the world emerges from the pandemic, our work has only just begun,” said Yuan.
Work System Since Pandemic Became Virtual
COVID-19 pandemic has suddenly shifted remote working systems for businesses around the world. Zoom becomes a practical throne to solve that long distance communication problem.
Zoom is an application that provides free and paid subscriptions. In paid subscriptions, the company’s sales jumped 326% to US $ 2.6 billion in 2020. Profits also jumped from US $ 21.7 million in 2019 to US $ 671.5 million.
Hargreaves Lansdown analyst Susannah Streeter said Zoom’s fate would depend on how the company managed to compete with companies like Microsoft and Google, which have introduced similar features.
“Although he caught the attention of other players in the first few months of the crisis, he now has much tougher competition like Microsoft and Google which have significantly improved their technology,” he said.
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