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Five incredible charts show Zoom’s meteoric rise in the past year — including a 355% revenue boost — as the pandemic has turned it into a household name (ZM)


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Five incredible charts show Zoom’s meteoric rise in the past year — including a 355% revenue boost — as the pandemic has turned it into a household name (ZM)

Zoom founder Eric Yuan reacts at the Nasdaq opening bell ceremony on April 18, 2019 in New York City. The video-conferencing software company announced it’s IPO priced at $36 per share, at an estimated value of $9.2 billion. Kena Betancur/Getty Images This story is available exclusively to Business Insider subscribers. Become an Insider and start…

Five incredible charts show Zoom’s meteoric rise in the past year — including a 355% revenue boost — as the pandemic has turned it into a household name (ZM)

eric yuan zoom ceo

eric yuan zoom ceo

Zoom founder Eric Yuan reacts at the Nasdaq opening bell ceremony on April 18, 2019 in New York City. The video-conferencing software company announced it’s IPO priced at $36 per share, at an estimated value of $9.2 billion.

Kena Betancur/Getty Images


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  • Video conferencing platform Zoom’s has experienced a meteoric rise this year, as shelter-in-place mandates keep people apart and remote work became the norm.
  • Zoom is now halfway through its fiscal year, and its first two quarterly reports revealed what analysts described as “historic” growth, as it soared past analyst expectations.
  • The company’s revenue jumped $355% in Q2, it dramatically raised full-year guidance, and it’s stock price has more than quadrupled over the year
  • These five charts illustrate just how fast Zoom has grown on the heels of the coronavirus pandemic:
  • Click here for more BI Prime stories.

Video conferencing platform Zoom’s has experienced a meteoric rise this year, with stunning growth numbers that make it one of the top corporate beneficiaries of the coronavirus crisis. 

When CEO Eric Yuan founded the company in 2011 after years working for now-rival Cisco WebEx, he aimed to make a corporate video conferencing tool that was simple and enjoyable to use. While Zoom has been popular in Silicon Valley for years, the pandemic transformed it into household name. Suddenly, remote work became the norm, and video conferencing became essential. And it wasn’t only companies using it to communicate with their employees and customers: As shelter-in-place mandates forced everyone to stay home, people started using Zoom for weddings, happy hours, online classes, and more.

While many of those new users stick to shorter Zoom-sessions through its free tier — and Zoom also offered users in China and K-12 schools free usage early on in the pandemic — the company is still raking in plenty of paying customers, too.  

Halfway through its fiscal year, Zoom just reported on Monday what analysts described as a “historic” quarter that smashed Wall Street expectations and highlighted just how meteoric it’s rise has been through 2020. 

To try to illustrate just how fast Zoom has grown on the heels of the coronavirus pandemic, Business Insider created the following five charts. (Note: FY 2020 is the fiscal year that started on February 1, 2019, FY 2021 is the fiscal year that started on February 1, 2020, and so forth.) 

A look at Zoom’s quarterly revenue starkly highlights how pandemic-related remote work boosted its business

Looking at Zoom’s quarterly revenue over the last year clearly shows how the pandemic spurred massive growth. Zoom’s revenue was swelling steadily last year, but when it first felt the early effects of the pandemic and increased remote work in the first quarter, it grew 57% on a quarterly basis.

Then, as the scale of the coronavirus crisis became apparent and companies began hunkering down for long-term remote work, its revenue doubled. 

Zoom reeled in more revenue in the second quarter of the year than it did in the entirety of 2019

When Zoom reported Q2 earnings on Monday, it revealed $663 million in revenue, a stunning 355% increase from a year prior. To put that in perspective, its full-year revenue for 2019 clocked in at $622.7 million, meaning that it pulled in more than $40 million more in revenue this quarter than it did in the entire previous year. 

Zoom was roughly doubling its revenue each year, this year it expects a much larger leap forward, given how fast it’s grown in the first two quarters of the year. (Note the FY 2021 revenue shown in the chart is forecasted results, and the other numbers shown are actual results.)

It wasn’t just revenue that saw a wild rise, either:

Zoom’s net income of $185.7 million in its most recent quarter was 34x its net income of $5.5 million in the same time period the year prior. 

Zoom has revised its guidance twice this year and is now anticipating more than $2 billion in revenue 

Since first issuing guidance for the year in March, Zoom has significantly upped its forecast. It originally expected between $905 million and $915.0 million in revenue, and after reporting 169% revenue growth in the first quarter, doubled its outlook to between $1.78 billion and $1.8 billion. At the time, several analysts predicted that Zoom would blow past that estimate. 

They were right. Zoom again raised its forecast for the year to between $2.37 billion and $2.39 billion. The company said during its earnings that it was taking into account the level of demand it’s seeing, but also being mindful that it can’t fully predict the effects of the coronavirus. For example, it said that it’s seeing a higher rate of churn than it has in the past (where customers with monthly contracts drop the service), so it factored that into the guidance. 

Zoom gives its revenue outlook as a range and the chart above shows the higher end of the range.

Zoom’s customer count has more than quadrupled since last year

Zoom’s surge in revenue is tied to the sheer number of new paying customers the company has signed on since the pandemic hit. The customer numbers in the chart above represent companies with more than 10 employees — it doesn’t account for companies smaller than that or individual paid users. 

Zoom ended last year with 81,900 customers with over 10 employees. Just a quarter later, that number jumped to 265,400. And as of July 31, when the second quarter ended, it had added over 100,000 more, for a total of 370,200 customers with over 10 employees. 

Zoom’s CFO said on a call with analysts on Monday that 81% of Zoom’s revenue growth in the second quarter came from new customer deals, and that expansions with existing customers accounted for 19% of the growth. Zoom also noted that more of those new customers are paying monthly, rather than annually like typical software contracts for large companies. 

Zoom’s stock price has quadrupled since the beginning of 2020

As the company has grown, Zoom’s stock price has skyrocketed: The day after it reported Q2 earnings, the stock was up more than 560% over the year to-date. When Zoom initially went public in spring 2019, it was worth about $16 billion. It’s market cap as of September 1 was $91.71 billion. 

Even before its Q2 earnings on Monday, its stock was up more than 340% for the year to-date. 

All that is not to say that Zoom’s rapid rise has come easily. It faced a series of security blunders in the spring, which it attributed to its user base expanding to consumers, rather than just business users who can rely on an IT department. It also faced backlash earlier this summer over its initial plan to only provide end-to-end encryption to paid users, and eventually revised those plans to provide it to all users.

Still, as the charts show, even those missteps clearly haven’t halted the company’s rocketship growth. 

Got a tip? Contact this reporter via email at pzaveri@businessinsider.com or Signal at 925-364-4258. (PR pitches by email only, please.) You can also contact Business Insider securely via SecureDrop.

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