Zoom's sales more than quadrupled last quarter — but the stock still fell
OK, Zoomer... Zoom is like that manatee squishing into aquarium glass to the tune of "I Can't Stop" (never gets old). It just dropped another insane quarter of expectation-beating growth, bringing in $777B in sales. That's because social distancing — like the manatee — didn't stop, either.
- +367%: How much Zoom's sales soared last quarter, nearly quintupling from the same quarter last year.
- +355%: How much Zoom's sales grew in the previous quarter. And they jumped 169% in the quarter before that. AKA: growth accelerated for three straight quarters.
- +555%: How much Zoom stock has soared since it went public in April 2019 with a market value of $15.9B. Today it's worth ~$115B.
Tough crowd... Zoom stock dropped 15% after the earnings announcement. Investors were disappointed because: Zoom expects 329% sales growth for this quarter (laaaame), which would be a slight slowdown from last. Also: Zoom's profit margin shrank from the previous quarter because it spent more.
You're only as valuable as your most valuable customers... All the free users (think: students, teachers) that Zoom gained last quarter aren't free: Zoom has to spend big $$$ to cover cloud costs so that Geometry class can happen — but it doesn't get paid. Still, Zoom still saw insane growth because "customers with more than 10 employees" grew 485% from last year. And more than 400K+ of them are paying.