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Zoom’s earnings are up massively for Q2 — three takeaways

Zoom announced their second quarter earnings, and it was a huge jump – an increase of 458 percent year over year in customers, and 355% year over year in revenue.   Those new subscribers accounted for 81% of second quarter revenue.   And within that – customers paying more than $100K – 998, up approximately 112% from the same quarter last fiscal year.

Why do we care?

There was a story within the channel last week how Zoom’s recent outage would cause a rise in Microsoft Teams adoption.     I present to you this data on the juggernaut that Zoom really is becoming.  

Sure, they have had challenges around security, and they have had a notable outage during a particularly bad time for that as school went back to session. 

This is a data point on several threads.

  • First, if you think this is all going away, this is too big a swing to back out.   It’s a new habit in work from home, and it’s here to stay.  Takeaway one.
  • They are not a small player, and they are a huge success story. We may not have picked this company as the winner – but that isn’t the point.   They are now, and there is clearly a reason they are dominating.  Ease of use matters, and they made onboarding and ease of use a priority.  Takeway two.
  • I pulled out that large customer number from the data because of the fact it’s increasing so fast – this is a cultural shift at all ends of the spectrum, and in my mind a leading indicator of the shifts to come in areas like real estate. Now that you’re planning for the future, you can project out industries that will change, and apply that to your own customers to anticipate coming problems.  Takeway three.

Source: Business Insider