Tuesday , September 22 2020
Breaking News
Home / Business / Zoom CEO’s wealth jumps by $9b after results stun Wall Street

Zoom CEO’s wealth jumps by $9b after results stun Wall Street

The software maker reported on Monday (US time) that sales jumped 355 per cent to $US663.5 million in the three months through July 31 from a year earlier. It was the second-largest surge among Nasdaq 100 Index members last quarter, only behind biotech firm Moderna, data compiled by Bloomberg show. Zoom said sales will be as much as $US2.39 billion in the fiscal year ending in January, meaning revenue would almost quadruple in just one year.

At the current level, Zoom’s market value exceeds the combined value of two storied automakers, General Motors and Ford, and is more than double the aggregate value of the nation’s four biggest airlines.

Zoom has been one of the clearest beneficiaries of the coronavirus pandemic, with governments, businesses and educational institutions turning to the service to work and teach remotely.

Zoom has been one of the clearest beneficiaries of the coronavirus pandemic, with governments, businesses and educational institutions turning to the service to work and teach remotely.Credit:AP

“I’m at a loss for words,” said Rishi Jaluria, an analyst at DA Davidson who is bullish on the stock. “After Q1, my colleagues and I said this is one of the best quarters in software history. How do you follow this up? I think they’ve done it. Outside of the massive acceleration in growth, the biggest positive surprise is how much profitability is going to the bottom line.”

Zoom gave a forecast suggesting the explosive growth will continue. The company said sales will be as much as $US2.39 billion in the fiscal year ending in January – meaning revenue would almost quadruple in just one year. Analysts, on average, expected sales of $US1.81 billion. Zoom previously projected fiscal-year revenue of $US1.8 billion.

Fiscal-year adjusted profit will be $US2.40 to $US2.47 a share, the company said. Analysts, on average, estimated $US1.25.

It’s been a year filled with eye-popping rallies for the richest names in the tech world – Amazon.com Inc.’s Jeff Bezos saw his net worth grow by $US13 billion in one day in July, and Tesla’s Elon Musk added $US8 billion in 24 hours last month. Both men have reached record levels of wealth, with Bezos crossing $US200 billion and Musk surpassing $US100 billion last week.

Bloomberg

Business Briefing

Start the day with major stories, exclusive coverage and expert opinion from our leading business journalists delivered to your inbox. Sign up for the Herald‘s here and The Age‘s here.

Market Recap

A concise wrap of the day on the markets, breaking business news and expert opinion delivered to your inbox each afternoon. Sign up for the Herald‘s here and The Age‘s here.

About admin

Check Also

The Short Squeeze: The waiting game

The latest episode of the Short Squeeze is now available. This week Lucy Battersby is …