What was life like before Zoom (ZM) meetings? We're struggling to remember, and Zoom definitely doesn't want to remind us. The company just saw its Q2 net profit surge 71% to $316.9m. The main driver behind this growth is the rising demand for video conferencing as businesses worldwide adopt hybrid work models due to the Covid-19 pandemic. In addition, the company's revenue surged 6.8% quarterly to $1.02b — that's a 54% increase compared to 12 months ago. This is Zoom's first billion-dollar revenue quarter.
Everything seems to be going great over at Zoom, but wait a moment — if net profit is skyrocketing and revenue is hitting new highs, why was the company's stock down nearly 16% on the Nasdaq? The drop has a lot to do with the slowing sales growth — from a 355% growth this time last year to an expected 30% growth in the next quarter.
Zoom will use part of its profits to buy Five9 (FIVN), a cloud contact center software that will help the company diversify.