Security concerns and reports of possibly problematic ties to Chinese authorities notwithstanding, Zoom Video Communications has been a major beneficiary of the changes brought about by the COVID-19 pandemic. As much of the world has been working from home and relying on technology to stay in touch with colleagues and loved ones amid national lockdowns, video conferencing apps saw an unprecedented surge in usage, with Zoom one of the most popular options available.
"In FY2021, we significantly scaled our business to provide critical communications and collaboration services to our customers and the global community in response to the pandemic," Eric S. Yuan, Founder and Chief Executive Officer of Zoom said in his company's latest earnings release. "We are humbled by our role as a trusted partner and an engine for the modern work-from-anywhere environment."
As the following chart shows, Zoom saw its revenue skyrocket throughout the fiscal year ended January 31, 2021. Following a 169-percent revenue increase in the first quarter, year-over-year revenue growth accelerated to 355, 367 and 369 percent, respectively, in the second, third and fourth quarter. For the twelve months ended January 31, Zoom's revenue amounted to $2.65 billion, up from just $623 million the previous year. The video conferencing company ended the year with a net profit of $671 million, up from just $22 million in fiscal 2020. As of March 1, Zoom Video Communications had a market capitalization of $120 billion, compared $31 billion a year earlier.
