Pandemic boosts ZOOM’s revenue growth by 169% year-over-year

In this photo zoom app screen on the smartphone,

The revenues of Zoom have skyrocketed cementing the fact that the video communication platform is among the biggest beneficiaries of the Coronavirus pandemic. Data gathered by Buy Shares highlights that the revenue hit an all-time high when the virus had spread across the globe with future projections indicating an upward growth.

According to the data, during the first quarter fiscal year of 2021, the revenue stood at $328 million, representing a growth of 168.85%. During the first quarter of the fiscal year 2020, the revenue was $122 million, accelerating the upward trajectory.   At the close of the fiscal year 2020, Zoom’s total revenue stood at $623 million.

Notably, Zoom’s revenue has been on an upward trend since the fiscal year 2019. By the first quarter of the fiscal year 2019, the revenue was $60 million, growing by 25% in the second quarter. The platform later registered revenues of  $90 million and $106 million in the third and fourth quarters of the fiscal year 2019 respectively. In total, Zoom’s revenue for the fiscal year 2019 was $331 million. The data projects that in the second quarter fiscal year 2021, the revenue will stand at $495 million, bringing the total of Zoom’s revenue for the fiscal year 2021 to $1.77 billion.

Covid-19 most impacted countries to drive Zoom’s usage

The Buyshares.co.uk data also overviewed countries that are worst hit by the Coronavirus in terms of death. The research ranked the countries based on the highest rolling- seven day average for new Covid-19 deaths per million people as of June 2nd. With these countries still battling the pandemic, they are expected to witness increased Zoom adoption translating to higher revenue.

Top on the list is Sweeden with 5.29 deaths per million people, followed by the United Kingdom at 4.48 while Peru is third with 4.35 million deaths per one million people. Brazil which is the epicenter of the outbreak in South America has 4.34 deaths per one million people while the United States closes the top five categories at 2.99.

Canada occupies the sixth spot at 2.96, followed by Mexico with 2.81 deaths per one million people. On the other hand, Chile is eighth with 2.63 followed by Armenia at 2.51 while Belgium closes the top ten categories with 2.14 million deaths per million people

Zoom is a popular application offering video calls for large groups of people. The application comes with a free tier package with unlimited meeting options. Under the free tier, group meetings are limited to 40 minutes. With the paid tier, users can have meetings of up to 1,000 participants.

Zoom’s growing popularity

Despite other sectors of the economy being impacted heavily by the pandemic, technology companies like Zoom are among the beneficiaries. With many people working from home, Zoom has emerged as the most preferred platform for holding meetings. As many countries imposed lockdowns, family members turned to Zoom as a way of keeping in touch with each other. Entities like museums, theatres, and schools chose video platforms like Zoom to keep normal operations.

Furthermore, with the ban on social gatherings, Zoom has become a cultural phenomenon through hosting parties, concerts, church services, and art shows. The application’s popularity is based on its layout which makes it easy to talk with multiple people at once.

Amid Zoom’s popularity, concerns have been over the privacy of users. The platform has been linked to China where it is alleged that the communist country is collecting user data from the platform.

With the Coronavirus pandemic, some countries adopted different measures to combat the pandemic. The top ten countries impacted by deaths did not put in place any lockdown and social distancing measures. For example, Sweeden did not have widespread social distancing and lockdown protocols but tasked citizens with the responsibility of protecting one another.

Before imposing lockdowns, the United Kingdom had used a similar approach with the goal of herding immunity. However, the skyrocketing deaths and infections forced the government to reconsider its position.  Furthermore, the high death rate might be due to disregard of Coronavirus preventive measures, as witnessed in some parts of South America.

Justinas Baltrusaitis

About Justinas Baltrusaitis

Justin is an editor, writer, and a downhill fan. He spent many years writing about banking, finances, blockchain, and digital assets-related news. He strives to serve the untold stories for the readers.