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Zoom Growth Continues After ‘Unprecedented’ 2020

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Video conferencing company, Zoom, is anticipating 40% growth in sales this year, topping over $3.7bn (£2.66bn).

The forecasted sales helped the company’s share price jump over 6% in after-hours trading earlier this week.

Investors have been keeping an eye on the company to see how its growth would hold up as social distancing regulations get eased.

Zoom says that they do not expect growth to continue as it did last year, but business remains strong in 2021 so far.

The company’s sales in the last three months of 2020 hit $882.5m - up 370% compared to the last three months of 2019.

"The fourth quarter marked a strong finish to an unprecedented year for Zoom," said Eric Yuan, Zoom founder and CEO. "As the world emerges from the pandemic, our work has only begun."

Zoom became a household name overnight as the coronavirus pandemic spurred an abrupt shift to remote working around the globe.

The company provides some of its services to the general public for free, but charges businesses a premium to use its remote meeting software.

Zoom’s sales grew over 326% in 2020, hitting $2.6bn, whilst profits hit $671.5mn, up from just $21.7m in 2019.

Many companies have already begun slowly easing staff back into offices, however many others say that the culture of remote working will linger for a while.

"The future is here with the rise of remote and work from anywhere trends," Yuan told investors. "We recognize this new reality and are helping to empower our own employees and those of our customers to work and thrive in a distributed manner."

Analyst at Hargreaves Lansdown, Susannah Streeter, said that Zoom’s continued success hinges on how it will compete against similar products that have been launched by Google and Microsoft.

"Although it stole an early march on other players in the first few months of the crisis, it does now have much stiffer competition from the likes of Microsoft and Google who have significantly upped their game," wrote Streeter.

"It may be that we have become so used to pandemic habits that we will stick with our virtual social lives, particularly for long distance friendships and work relationships. But just how large a slice of the live video pie Zoom manages to hang on to will depend on how it matches up to its powerful rivals."

Harry Pererra
Harry Pererra

Harry turns on his experience in journalism and programming to write about the latest news in the world of tech and the environemtn. When he isn’t writing for usave he is working towards his Blue Belt in Brazilian Jiu Jitsu, and prefers dogs to cats.

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