Technology company Zoom Video Communications Inc. (ZM) has increased its annual revenue and sales targets after comfortably beating analysts’ estimates in the second quarter of the year. The company raised its target for annual revenue by 30%.
Zoom is now looking forward for revenue between $2.37 billion to $2.39 billion in the fiscal year 2021. The target is much higher compared to the range of $1.78 billion to $1.80 billion the company had previously stated.
Zoom says one way it will be using to increase its revenue is by converting its large free user base into paid subscriptions.
In the second quarter, Zoom’s revenue stood at $663.5 million denoting a 355% increase the value was much higher than the $500.5 million analysts were expecting. Gross profit for the company increased to 71%, this was also on the higher end compared to the 68% increase in profit the company registered last quarter.
The number of Zoom customers who generated more than $100,000 in 2019 also increased more than twice to 988 in the second quarter.