Sales in the current quarter will be as much as $500 million, the San Jose, California-based company said Tuesday in a statement. Overall, Zoom expects to generate as much as $1.8 billion this fiscal year, which is nearly triple the size of the business last year. Zoom wants to ensure that all calls that could potentially violate the terms of service and "misuse" the platform can be easily handed over to law enforcement without needing to decrypt all those criminal video calls.
The company raised its full-year revenue forecast to a range of $1.78bn to $1.80bn from $905.0m to $915.0m. However, the company's gross margin fell from 80pc to 68pc year on year.
US -head-quartered teleconferencing solution provider Zoom Video's revenue for the February-April 2020 quarter sprinted 169% to United States dollars 328.2 million, driven by demand for its services amid work from home and physical distancing measures due to COVID-19 outbreak.
Zoom announces 90-day feature freeze To solve the security and privacy issues, Zoom CEO Eric S. Yuan announced a 90-day feature freeze in April to focus on fixing the privacy and security issues. He noted that this is a "difficult balancing act for Zoom", but the company expects to bring down abusive use by keeping its end-to-end encryption security behind a paywall.
"Navigating this process has been a humbling learning experience", Mr Yuan said on an investor call on Tuesday. Zoom's customer numbers were similarly sharp, with the firm reporting that it had 265,400 customers with more than 10 seats (employees) at the end of the quarter, which was up 354% from the year-ago period. From $122-million a year earlier to $328-million in Q1. Profit, excluding some items, was 20 cents a share, compared with analysts' average projection of 9 cents.
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Zoom's stock is up 206% this year.
Shares were little-changed in extended trading after closing at a record $208.08 in NY. End-to-end encryption will arrive for subscribers, but not free users, because of Zoom's intentions to co-operate with law enforcement agencies.
"Lots of companies are facing this balancing act, but as a paid enterprise product that has to offer E2EE as an option due to legitimate product needs, Zoom has a slightly different calculus".
With the surge in remote networking services such as Zoom, Teams and Slack expected to continue post-pandemic as businesses adapt to a new more physically distanced "normal", there is likely to be an increase in takeover activity.
In April, the company garnered ire for offering up misleading figures claiming the service had 300 million daily active users. "Because we also want to work it together with Federal Bureau of Investigation and local law enforcement, in case some people use Zoom for a bad objective", stated Yuan.