Zoom's Q2 Earnings Shine -- and Business Travel May Never Be the Same

Zoom Video Communications (NASDAQ: ZM) obliterated all expectations again during the worst of the economic lockdown brought on by the coronavirus pandemic, and shares are now up 600% so far in 2020 as of this writing. It's easy to be drawn in by the incredible financial figures the video conferencing company is posting, but the implications of Zoom's rise go far deeper than a great (and incredibly fast) growth story. Because of its meteoric rise, the business world will never be the same again.

In its second-quarter fiscal 2021 earnings report, Zoom posted a 355% increase in revenue to $664 million ($146 million a year ago). Free cash flow (revenue less cash operating and capital expenses, and what gets added to or subtracted from the balance sheet) once again blew up as it did during the first quarter, as a number of annual subscription payments were made and Zoom seemingly ran out of places to spend money amid the pandemic. Free cash flow was $373 million compared to $17.1 million last year and was $706 million over the last 12-month stretch.

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Source Fool.com