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Shares of Zoom Video Communications Inc. soared a day after the video-chat company that gained popularity during the pandemic reported another big jump in users and raised its financial forecast.
The company’s shares were up about 38% to $ 449 in afternoon trading, giving the company a market value of about $ 131 billion. The shares rose as much as 47% earlier in the trading session. Zoom completed a public offering in April of last year, with the stock priced at $ 36 each. The shares have risen roughly six times so far this year, an increase of 563% in percentage terms.
Yesterday, the San Jose, California company beat expectations for its July quarter, reporting a $ 185.7 million gain in sales that had increased fivefold from the prior year to $ 663.5 million.
The company’s video-chat application, where users join so-called meeting rooms, has become a fundamental tool for companies with dispersed staff in closed offices, people reaching out to friends and family during Covid quarantines. 19 and for organizations such as schools and medical institutions.
Zoom said it has more than 370,000 clients with more than 10 employees and that the number of its most lucrative clients doubled compared to the previous year.
