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Zoom Hit a Record High Quarterly Revenue of $882.5 Million, Almost a 370% Increase YoY

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Zoom’s revenues skyrocketed last year as global demand for online meeting solutions soared amid the COVID-19 lockdown. Although the popular video conferencing platform generated impressive revenue through its fiscal year 2021, the year’s final quarter set a new record.

According to data presented by Buy Shares, Zoom hit a record high quarterly revenue of $882.5 million in Q4 FY 2021, almost a 370% increase year-over-year.

Annual Revenue Soared by 700% in Two Years

Unlike many other sectors, the video conferencing platforms witnessed explosive growth amid the COVID-19 crisis, as millions of people started working from home. However, Zoom emerged as the most preferred platform for holding virtual meetings. As countries across the globe imposed lockdowns, family members also turned to Zoom as a way of keeping in touch with each other. Museums, theatres, and schools chose the platform to maintain normal operations.

With the ban on social gatherings, Zoom also became a cultural phenomenon through hosting parties, concerts, church services, and art shows. The surge in the number of users led to a 700% revenue growth in two years.

In the fiscal year 2019, Zoom generated $330.5 million in revenue, revealed the company’s earnings report. Over the next twelve months, this figure jumped by more than 88% to $626.6 million. The two-digit increase was driven by a strong Q4 FY 2020, matching the period between January and March 2020, when the pandemic already struck. Zoom’s quarterly revenue jumped by 78% YoY in this three-month period and hit $188 million.

The strong increasing trend continued in the following months, with revenue rising to $328.1 million in the second quarter of the calendar year 2020. Statistics show this figure more than doubled in the next three-month period and hit $663.5 million.

However, the fourth quarter of the fiscal year 2021, matching the period between January and March 2021, delivered the highest quarterly revenue in Zoom`s history, causing annual revenues to rise above the expectations to $2.65bn.

Almost 70% of that value, or $1.83bn, was generated in the Americas as the largest Zoom market. Users from the EMEA region, as the second-largest market, generated $486 million in revenue. Asia followed with $332.8 million, respectively.

Market Cap Soared by 357% Year-Over-Year

While the Zoom stock price has increased steadily throughout 2020, a positive announcement regarding the efficiency of a COVID-19 vaccine in November last year resulted in the price falling by more than 30% by the end of the year.

Since then, the share price has been fluctuating and in recent months saw even more of a downturn, reaching $328.95 last week.

In December 2020, the combined value of Zoom shares stood at $115.5bn, revealed the MacroTrends data. Over the last four months, this figure dropped to $96.6bn, still a 357% increase year-over-year.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Social Media

Facebook Halts ‘Instagram Kids’ Project Following Criticism

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Facebook, which faced sharp criticism from lawmakers and users for its plan to develop an Instagram for kids, announced Monday it’s pausing work on the project.

“While we believe building ‘Instagram Kids’ is the right thing to do, Instagram, and its parent company Facebook, will re-evaluate the project at a later date. In the interim Instagram will continue to focus on teen safety and expanding parental supervision features for teens,” the company said in a statement.

Instagram head Adam Mosseri said the app was meant for children ages 10 to 12.

The pause comes after an explosive Wall Street Journal report showed Facebook repeatedly found its Instagram app is harmful to many teenagers. The Journal cited Facebook studies over the past three years that examined how Instagram affects its young user base, with teenage girls being most notably harmed.

One internal Facebook presentation said that among teens who reported suicidal thoughts, 13% of British users and 6% of American users traced the issue to Instagram.

The report led lawmakers to readdress their concerns over the social media app. Just after the news broke, representatives on both sides of the aisle demanded answers from Facebook. Rep. Lori Trahan, D-Mass., also called on Facebook to abandon its Instagram for kids efforts.

Antigone Davis, Facebook’s global head of safety, will testify before the Senate Commerce subcommittee on consumer protection on Thursday.

Facebook has repeatedly defended its efforts to draw more kids to the app. Mosseri argued in a blog post early Monday that children are already online.

“Critics of ‘Instagram Kids’ will see this as an acknowledgment that the project is a bad idea. That’s not the case. The reality is that kids are already online, and we believe that developing age-appropriate experiences designed specifically for them is far better for parents than where we are today,” he said. Instagram will pause its work to address concerns with parents, experts, policymakers and regulators.

Instagram will also work on expanding its parental controls to teen accounts.

“These new features, which parents and teens can opt into, will give parents the tools to meaningfully shape their teen’s experience,” Mosseri said.

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Telecommunications

Mobile Operators Experienced 16,000 Outages in Seven Months, Says Minister

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The Minister of Communications and Digital Economy, Dr. Isa Ibrahim Pantami has disclosed that there were about 16,000 reported outages by mobile network operators in the country from January 2021 to July 2021.

The outages, according to him, were due to fibre cuts, access denial and theft, leading to service disruption in the affected areas.

The Minister who disclosed this in Maiduguri, during a recent town hall meeting, where he addressed the vandalism of power and telecommunications infrastructure, noted that the protection of the critical infrastructural facility was key to the nation’s security, economic vitality, public health and safety.

The event, which was organised by the Ministry of Information and Culture, was attended by Governor Babagana Zulum of Borno State, his Deputy, Mr. Usman Kadafur, and other stakeholders. The Minister of Information and Culture, Alhaji Lai Mohammed, led some other ministers who were panellists at the town hall meeting.

Pantami, who was represented by the Commissioner for Technical Services, Nigerian Communications Commission (NCC), Mr. Ubale Maska, decried the situation where telecoms installations that were destroyed in the attacks by terrorists had not been replaced as a result of the lingering insecurity and tensions in parts of the North-east.

As a way forward, the minister recommended continuous stakeholders buying-in and synergy among security forces.
He also urged the National Assembly to expedite the passage of the Critical Infrastructure Protection Bill for onward submission to the President for assent.

Pantami, also said the Fifth Generation (5G) network, that was recently approved by the Federal Executive Council, would be deployed in Nigeria in January 2022. He said when deployed, it would aid the surveillance of public assets against vandalism.

He said while the technology would boost surveillance against criminal elements vandalising public infrastructure across the country, other measures should be put in place to arrest them and bring them to book.

The minister disclosed that there were over 50,000 telecommunication sites across the country, which made it difficult to manage manually except through the deployment of modern technology.

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Fund Raising

Nigerian Energy Startup Secures $2M Investment From Shell-Owned Fund

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Nigerian startup Infibranches Technologies, which helps solar energy providers manage their operations and receive payments, has secured US$2 million funding from All On, an impact investment company backed by oil major Shell.

Founded in 2019, the Lagos-based Infibranches has developed two flagship products – OmniBranches and Green Energy Plug – that help companies with large distribution networks, particularly solar home system distributors and mini-grid developers, manage their operations.

OmniBranches is a management platform with features that include agent hierarchy management, commission tracking, transaction records, transaction analytics, and profile management, while Green Energy Plug is a single point of integration for payments and other financial services for service providers in the Nigerian renewable energy sector.

So far the company has served over one million customers and processed over US$120 million in transactions, and the US$2 million All On investment will be used to support the next stage of its growth by financing inventory, agent acquisition, and product and technology development, as well as providing working capital for Infibranches’ plans to distribute solar home systems for households and commercial users across Nigeria, with a special focus in the Niger Delta.

“Through this investment, Infibranches plans to speed up customer acquisition in its current markets. This will also improve existing products like Omnibranches, which has served over a million customers and introduce new products and services to address energy distribution issues,” said chief executive officer (CEO) Olusola Owoyemi.

Dr Wiebe Boer, chief executive of All On, commended Infibrances for its innovative business model that solves payments and collections problems solar system distributors and mini-grid developers face across Nigeria.

“This partnership merges fintech and renewables in a way we haven’t seen in Nigeria before and will enable tens of thousands of new electricity connections,” he said.

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