Zoom video conferencing App reports a 169% revenue rise to $328.2 million in coronavirus quarter even though security concerns remain
This can be called making most of a tragedy. With the coronavirus lockdown in place throughout the world, the people turned to the Zoom video conferencing App in droves for staying in touch with their colleges, universities, offices, relatives, and loved ones. This despite the Zoom video conferencing App having the worst security apparatus in place to protect them. Naturally, hackers and cybercriminals not only took advantage of the lack of Zoom App security to conduct Zoombombing raids but also steal Zoom usernames and passwords and sell them on dark web hacker forums.
But this hasn’t stopped Zoom App makers from profiteering. The Zoom video conferencing App developer, Zoom which is listed on Nasdaq reported a rise of whopping 169% in revenues for the coronavirus pandemic quarter. Revenue improved 169% to $328.2 million from $122 million a year ago. Analysts surveyed by FactSet had expected adjusted earnings of 9 cents a share on sales of $230.6 million.
Zoom (ZM,) +1.92% reported net income of $27 million, or 9 cents a share, compared with net income of $200,000, or less than a penny a share, in the year-ago quarter. After adjusting for stock-based compensation and other factors, Zoom reported earnings of 20 cents a share, up from 3 cents a share a year ago.
It is not a surprise that Wall Street liked what it saw and the Zoom share price surged by 4% yesterday. The Zoom stock has risen a whopping 206% during the coronavirus pandemic even as top bluechip stocks have struggled throughout the world. The Zoom stock price is trading at a 52 week high of $208.99 on Nasdaq.
And all this is despite having lax security measures in place and serial Zoombombing raids on Zoom video conferences by hackers and cybercriminals. Until last week, even those who weren’t hosting a meeting were allowed to connect and potentially broadcast inappropriate messages. Zoom says it has made changes but it remains to be seen whether the Zoombombing attacks will stop.