Zoom’s Q2 report details some of the most extraordinary growth I’ve ever seen
Huge customer demand drove profit metrics through the roof
Many companies have posted the occasional big quarter. These outsized periods may come when a business sells part of itself, or, through some arcane non-cash financial hijinks, it posts impressive numbers that appear prodigious when compared to their regular operating results. (Like when Uber recorded huge profits in its March 31, 2018 quarter.)
And then there’s Zoom, the cloud video comms company that went public in April, 2019. It just turned in a quarter so extraordinary that you might presume it was inflated, or otherwise somehow faux. But what makes Zoom’s Q2 earnings data so damn interesting and impressive is that it appears that the company has managed to just grow more than anyone expected or perhaps thought possible, in less time, while making more money than anticipated.
Let’s dig into the numbers to understand what the world’s most impressive COVID-bump looks like.
A monster Q2
At the end of its Q1, Zoom told investors that it expected to generate revenue “between $495.0 million and $500.0 million” in Q2 2020 and “between $1.775 billion and $1.800 billion” for its full fiscal year, which is offset by one month from the calendar year.
Before its Q2 report, investors had expected a bit more, with average estimates for Q2 2020 revenue coming in at $500.5 million. Regarding its fiscal year, analysts expected the company to generate $1.81 billion in revenue.