Millions of Users Love Zoom: Here's Why That's Bad News
With work-from-home and social distancing policies increasing reliance on video conferencing applications, Zoom Video Communications (NASDAQ: ZM) has posted record-breaking growth. Investors swooped in and pushed the company's share price 40% higher in a single day of trading, although the entire market did pull back substantially shortly after. But somehow, somewhere, didn't everyone forget the hacking scandals from earlier this year?
Image source: Getty Images.
At face value, Zoom posts drool-worthy numbers. The company reported in August 2020 that total revenue had grown 355% year over year to $664 million in the second quarter. These results exceeded the guidance of $495 million to $500 million, as demand remained at heightened levels and more free users were converted to paying customers. Most impressively, current customers with more than 10 employees increased by 105,000 to approximately 370,000. So Zoom is clearly growing at an eye-popping rate.
Source Fool.com