Zoom Sales Quadruple in Q3 as Demand for Remote Work Remains High

Zoom sales skyrocketed during the company’s most recent quarter as the ongoing COVID-19 pandemic kept workers home.

Total revenue for the quarter was $777.2 million. That’s up 367%, from $166.5 million, for the year-ago quarter.

Profit was nearly $199 million, up from $2.2 million a year ago.

Zoom had 433,700 customers with more than 10 employees at the end of the quarter. That’s up 485% year-over-year and 17% from the end of July.

Nearly 1,300 of its customers are paying more than $100,000 each, a 136% increase from a year ago.

Zoom’s stock price, which has already grown by more than 580% this year, fell more than 5% in after-hours trading after the company announced its earnings.

New World of Work from Anywhere

Zoom’s Eric Yuan

“We remain focused on the communication needs of our customers and communities as they navigate the current environment and adapt to a new world of work from anywhere using Zoom,” said Eric Yuan, Zoom’s founder and CEO. “We aspire to provide the most innovative, secure, reliable and high-quality communications platform to help people connect, collaborate, build and learn on Zoom.”

Zoom sales growth was driven by acquiring new customers and expanding across existing customers, the company said.

For its fourth quarter, Zoom expects revenue to top $800 million and profit to exceed $240 million.

Analysts say demand for UCaaS solutions will remain solid into next year and after the pandemic subsides. Demand for UCaaS exploded early on in the pandemic due to the massive transition to work from home. The initial surge leveled off early this summer, but remains brisk heading into 2021.

Moreover, analysts say UCaaS is here to stay as organizations make them a permanent part of doing business.

Earlier this month, news of progress on COVID-19 vaccines caused Zoom’s stock price to dip, along with other stocks that benefitted from stay-at-home trends.