Zoom Video Communications Inc. said its growth would continue at a rapid pace amid the vaccine rollout, after pandemic lockdowns turned the company into a household name and an investor darling.
The videoconferencing company said Monday that revenue this year would rise more than 41% after more than quadrupling to $2.65 billion in the fiscal year ended in January. The sharp growth during last year repeatedly outpaced Zoom’s own projections, and the latest result beat a forecast issued in November.
Zoom’s share price, which more than tripled over the past 12 months, was ahead nearly 10% in after-hours trading Monday after gaining by a similar margin to finish at $409.66 during the day’s regular session.
The company, which started trading in the public markets in 2019, has been one of the biggest corporate beneficiaries from the shift to remote work and distance schooling, pitting it against larger rivals like Microsoft Corp.
Although Zoom made its name, in part, by giving its services away free to many users during the pandemic, its number of paying users also skyrocketed as large businesses and others tried to connect their workforce and with customers. Zoom ended the year with about 467,100 customers with more than 10 employees, a nearly sixfold increase from a year earlier.
