On August 30 (local time), online conferencing platform company Zoom announced its financial results for the second quarter of 2021. Sales rose 54% year-over-year to $1.021.5 billion, surpassing $1 billion for the first time in the quarter, but analysts say growth is trending down.
Zoom revenue was $1.021.5 million and net income was $317 million, up 70% year-over-year. In the past 12 months, there were 504,900 contracts with companies with 10 or more employees, and a total of 2,278 contracts with an annual contract amount of more than $100,000.
But Zoom is also making it clear that its revenues are expected to decline in the third quarter of 2021. Kelly Steckelberg, Zoom’s CFO, said the COVID-19 outbreak has boosted demand, but the situation has gradually stabilized and sales are starting to return to normal. Through this, he expressed the view that this quarter’s performance is a normal measure for the future. Zoom shares also fell 12% in 30-day after-hours trading.
One analyst is concerned about Zoom’s slowing growth and points out that the biggest problem is intensifying competition for online conferencing tools. Eric Yang, CEO of Zoom, reports that Zoom has achieved strong profitability and cash flow, stressing that Zoom believes in growing into a global brand and well-suited to supporting individuals and organizations thinking about work or communication. Related information can be found here.