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$4 bn in hours: Zoom CEO's wealth soars as revenue jumps 355% in Q2

Shares of his virtual-meeting company surged as much as 26 per cent to $410 in late US trading as it reported a jump in quarterly revenue and suggested the explosive growth will continue.

Topics
Zoom | Video Calling

Agencies 

Eric Yuan, Zoom
Yuan’s net worth soared by $5.2 billion as shares of his company surged 32% to $429.28 in early trade on Tues­day | Photo: Bloomberg

In just a few hours, Video Communications Inc Chief Executive Officer Eric Yuan got $4.2 billion richer.

Shares of his virtual-meeting company surged as much as 26 per cent to $410 in late US trading as it reported a jump in quarterly revenue and suggested the explosive growth will continue.

Video Communications reported the second-largest sales surge among Nasdaq 100 last quarter, providing an emphatic demonstration that businesses and consumers have continued to flock to the video-meeting service in even larger numbers than expected. Shares soared more than 32 per cent in early trading on Tuesday. Revenue jumped more than four times to $663.5 million in the fiscal second quarter from a year earlier, the San Jose, California-based company said on Monday in a statement. Analysts, on average, projected $500 million.

Biotech firm Moderna is the only Nasdaq 100 company to have reported a larger sales gain in a similar period, according to the data compiled by Bloomberg. Earnings, excluding some items, were 92 cents a share in the period ended July 31, compared with analysts’ estimates of 45 cents. Revenue grew 355 per cent on an annualised basis in the fiscal second quarter, which ended on July 31, according to a statement.

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First Published: Wed, September 02 2020. 01:49 IST
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