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Zoom’s customer base soars 458% as it beats earnings estimates

August 31, 2020, 10:53 PM UTC

No need to check the audio, Wall Street can hear Zoom loud and clear.

After the close of trading on Monday, Zoom Video Communications reported a stellar second quarter. The San Jose-based tech company’s second quarter revenue topped $664 million, up 355% year-over-year. And that beat analysts revenue estimate of $501 million, according to Refinitiv.

Zoom reported an earnings per share of $0.92, almost doubling analyst estimate of $0.45. And its paying customer base—those with at least 10 employees—grew to 370,200, up 458% year-over-year.

The stock, which trades under the ticker “ZM,” finished the day up 8.6% to $325. But after reporting, Zoom’s extended trading price climbed another 9%.

The company is among the top business benefactors of the pandemic, which has displaced millions of workers from office buildings and sped up digital transformation. Year-to-date the stock is up a staggering 373%.

“Organizations are shifting from addressing their immediate business continuity needs to supporting a future of working anywhere, learning anywhere, and connecting anywhere on Zoom’s video-first platform,” Zoom founder and CEO Eric Yuan wrote in the earning report.

And the move towards WFH isn’t going away anytime soon. A Fortune-SurveyMonkey poll between July 17 and 21 found 46% of all U.S. workers were remote at some point since the onset of the pandemic. And 83% of those remote workers would like to work fully or partially remote through at least the end of the year.

Zoom increased its revenue outlook to $2.39 billion for fiscal year 2021, which would represent a 284% increase over fiscal year 2020.