WFH Boosted Zoom Q2 as CEO Calls Video the New Voice; Stock Gains

"Video is the new voice," said Zoom CEO Eric Yuan on quarterly call Monday. "There's no reason for any business to deploy two separate systems." COVID-19 "completely accelerated" the digital transformation for "every enterprise," said Yuan. "You want to support employees no matter where they are, where the traditional on-prem[ises] system really is not applicable anymore." Demand for remote-work solutions remains high, as organizations “moved beyond addressing immediate business continuity needs” into strategizing for a post-pandemic future, said the corporate chief. Employers are “actively redefining and embracing new approaches to support a future of working anywhere, learning anywhere, and connecting anywhere,” said Yuan. Revenue soared 355% from the year-earlier quarter. New subscriptions were 81% of the growth, said Chief Financial Officer Kelly Steckelberg. “Demand remained at heightened levels, combined with lower than expected churn,” she said. “This demand was broad-based.” But small firms churned at a higher rate, the CFO said. The stock closed 41% higher Tuesday at $457.69.