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Zoom revenue up by 367% as app users are increasing rapidly

Zoom’s third-quarter revenue for video communication is up 367% year-to-date, as the company reported net revenue of $198.4 million, or 66 cents per share, and total revenue of $777.2 million, while non-trading revenue reached GAAP accounts for 99 cents per share, and Wall Street was expecting total company revenue of $694 million, with non-GAAP revenue of 76 cents per share.

As for the fourth quarter, Zoom expects its revenue to range between $806 million to $811 million and its non-GAAP revenue to range between 77 to 79 cents per share, and it expects total revenue of between $2.57 to $2.58 billion by the end of fiscal year 2021, while it expects analysts expect fourth-quarter revenue to reach only $730 million and company revenue to reach $2.4 billion by the end of fiscal year 2021.

At the Zoomtopia conference last month, which was virtually online due to the Corona pandemic, Zoom launched its “Play with Zoom” application platform, in addition to the Onzoom platform, which represents an electronic market for content makers, and it was highlighted that Zoom has become the platform for working and learning, as it provides more than 3.5 trillion minutes of meetings annually, in addition to 300 million participants in meetings daily.

The company ended the third quarter with revenues of $1.9 billion in cash or its equivalent, and the company reported that 1,289 customers contributed more than $100,000 in revenues for the 12 months, and the company’s total profit rate for the third quarter reached 66.7%, after it was more than 80% in Pre-pandemic period, when cloud computing costs impacted gross margins after Zoom expanded its services, bringing profits down from 72.2% in the second quarter to what they are now.

On the other hand, Zoom’s growth rate increased by 17% sequentially starting from the second quarter of last year, while the successive growth jump from the first quarter to the second quarter reached 40%, but the company’s biggest question remains: How will it be able to maintain growth rates In light of the decline of the Corona pandemic?

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