So today Zoom Stock made the jump that shocked a lot of investors, 40% increase? Really?
That’s probably because their Q2 earnings beat expectation by more than 100%:
- Strong growth in revenue and customers. In the last quarter, revenue reached $664 million, up 355% year-on-year. More than 10 customers reached 370000, up 458% year on year;
- Customer retention and internal growth. For the ninth consecutive quarter, TTM net dollar expansion rate exceeded 130%. That is to say, customers a year ago are now spending 30% more on repurchase than they were then;
- Foreign revenue increased by 629% year on year, accounting for 31.6% of total revenue from 19.7% a year ago, which shows geographic revenue structure optimization;
- Gross profit 72.3%. The operating profit margin was 41.7%, which shows the profitability of the business;
- The free cash flow was 370 million , an increase of 20 times over the same period of last year. This is what Bill ackman calls “free cash flow generator.”.
- The revenue to be recognized in the coming year is 1.4 billion, which is 450 million in the same period of last year, with a year-on-year increase of 209%.
In fact, the most important thing for me to hold zoom is not how beautiful the current report is, but there are two essential points:
1. Zoom’s products are much better than WebEx, which the owner/CEO of Zoom used to work for. Not only individual customers like it, but also company customers have changed to Zoom. This is decided by the company and culture that makes the product. Just like what Apple makes is very consistent with the user’s use habits, easy to use.
2. Video conference is the trend, epidemic situation is only accelerator. There is a partner in our company who has been working in other states for a long time. In the past, we used to rely on WebEx for meetings, but now it is zoom. Large companies with offices all over the world also need video conferencing before the outbreak. This demand is always there. Moreover, it is not known when the epidemic will end. Secondly, more people will be working remotely even if the epidemic is over. Many meetings that are necessary can be zoomed in. It’s hard to change the habit of users.
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