Zoom Is Killing It Financially, Thanks to Remote Work

Arguably no company better exemplifies the change to work life in the ongoing pandemic than Zoom Video Communications, which saw its revenue skyrocket.
Zoom Is Killing It Financially, Thanks to Remote Work
Image credit: SOPA Images | Getty Images

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
2 min read
This story originally appeared on PC Mag

Zoom Video Communication, the company behind Zoom Meeting, started its fiscal year on February 1st—and what a time to do so. While the company has had nothing but steady growth going back to the first quarter of 2019 (fiscal year, not calendar), the first quarter of fiscal year 2020 saw an amazing 169 percent revenue increase year over year.

Our partners at Statista put together the chart above to show the growth based on Zoom's results report. It's obviously fueled by the fact that Zoom's Q1 2021 (fiscal year, remember!) happened to coincide with the global pandemic caused by the novel coronavirus that causes COVID-19, which in turn caused so many people to start working from home and doing video conferences.

In a statement, Eric S. Yuan, Founder and Chief Executive Officer of Zoom said, "The COVID-19 crisis has driven higher demand for distributed, face-to-face interactions and collaboration using Zoom. Use cases have grown rapidly as people integrated Zoom into their work, learning, and personal lives."

We reported in April that Zoom was already hitting 300 million daily users. But growth came with growing pains: everything from Zoom-bombings that required security upgrades (they're easily prevented now), to reports recently that free use of the service may come at the cost of any hope of privacy.  

Many companies have banned the use of Zoom, including SpaceX, NASA, and Google. (A few companies have banished Google Meet/Hangouts, too, to be fair.) So have many banks and some governments. If you're not enamored of Zoom, here are some alternatives.

It doesn't appear to be hurting Zoom much where it counts, but maybe the financials of Q2 for (fiscal year) 2021 will tell a different tale.

More from Entrepreneur

Learn how to get your own business launched with our on-demand start-up course. Whether your ready or just thinking about starting your own business, get started for free with our first 3 lessons and receive a personalized 1-page business brief.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Create your business plan in half the time with twice the impact using Entrepreneur's BIZ PLANNING PLUS powered by LivePlan. Try risk free for 60 days.

Latest on Entrepreneur