Any talk of Zoom being a pandemic-only fad may begin to fade after the teleconferencing leader reported yet another blowout quarter.
It’s no secret that Zoom (NASDAQ: ZM) killed it once COVID-19 upended our lives. In fact, it’s the poster child of the stay-at-home stock rally.
But it’s showing no signs of slowing down post-pandemic!
Zoom’s Q1 Earnings
Ok, it’s definitely premature to say that we are ‘post-pandemic’, but there’s no denying that there’s a prevailing sense of being in the ‘endgame’.
Vaccines are rolling out nicely, businesses are reopening, and there are even people beginning to have fun again — things many of us couldn’t imagine eight months ago.
However, Zoom and other stay-at-home stocks were expected to be the victim of this return to normality. Who needs a video call when we can see each other in person? And please God, no more Zoom quizzes…
However, despite Q1 being the first quarter of pandemic ‘recovery’, total revenue hit an all-time high of $956.2 million, up 191% year-over-year. The number of customers contributing more than $100,000 in revenue jumped 160%, while customers with more than 10 employees jumped 87% to 497,000.
With this solid start, Zoom raised its total revenue guidance range to between $3.98 billion and $3.99 billion for the full fiscal year, implying its confidence that Zoom won’t suddenly become obsolete. Far from it, every survey conducted in the past year implies that working remotely is here to stay in some capacity. There are even widespread reports of employees quitting companies demanding a return to the office to seek remote working opportunities instead.
Zoom’s explosive growth will slow, there’s no doubt, but remote working is here to stay. As the best product currently in the market, don’t be surprised to see Zoom continue to dominate and innovate within the remote working space.
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