Popular videoconferencing app Zoom has seen its revenues skyrocket as second-quarter profits more than doubled due to the coronavirus crisis.
Zoom’s shares hit a record high on Monday, closing at $325.10, as the firm raised its annual revenue forecast by more than 30% to the range of $2.37bn-$2.39bn, from its previous projection of $1.78bn-$1.80bn.
Key to Zoom’s success was its ability to add paying customers – high-budget corporate clients – as opposed to those who use its services for free.
Zoom, together with rivals Cisco Webex and Microsoft Teams, have all seen a surge in usage of their video conferencing platforms since coronavirus lockdown measures were imposed by multiple countries in March.
Its reputation also took a hit, as the new attention prompted hackers to hijack meetings and exposed a host of security flaws, revealing that the firm had sent user data to Facebook, had wrongly claimed the app had end-to-end encryption, and was allowing meeting hosts to track attendees.
Zoom has also faced political scrutiny for its ties to China – where it has more than 700 staff, including most of its product development team – which have prompted warnings that it is not fit for government use.