Zoom forecasts sales surge as video conferencing becomes a daily routine

Zoom Video Communications Inc raised its annual revenue forecast by more than 30% after comfortably beating quarterly estimates on Monday as it converts more of its huge free user base to paid

Curated via Twitter from Reuters Tech News’s twitter account….

She also said the company was experiencing slightly higher rates of customer cancellation than Zoom’s historical average, but that the new rates had been factored into the company’s forecast. “The revenue growth is accelerating,” Chaim Siegel, an analyst with Elazar Advisors, told Reuters. “Even though they gave very strong guidance for next quarter it’s possible they’re being conservative if you consider a stay-at-home back-to-school.

Since the start of the pandemic, Zoom has worked to convert the mass of free users into paying customers, which is important because the company relies on both its own data centers and cloud providers such as Amazon. com and Oracle Corp to provide its serving, meaning it must bear costs for free users.

On a conference call with investors, Zoom Chief Financial Officer Kelly Steckelberg said the company’s gross profits will remain in the same range as the fiscal second quarter for the rest of the fiscal year.

The company, founded and headed by former Cisco manager Eric Yuan, raised its annual revenue target for fiscal year 2021 to a range of $2. 37 billion to $2. 39 billion, from $1. 78 billion to $1. 80 billion previously.

(Reuters) – Zoom Video Communications Inc raised its annual revenue forecast by more than 30% after comfortably beating quarterly estimates on Monday as it converts more of its huge free user base to paid subscriptions.

The company’s gross profit rose to 71% from 68%, but remains far below the 80% range Zoom operated at before free users flocked to the service.

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