ZOOM Sees Rise in Demand Amid Coronavirus

Zoom, a video calling service company, is seeing an increase in demand amid the coronavirus outbreak.

The company’s video calling service app is now at the top of the mobile app stores and the company is adding infrastructure to keep up with rising needs.

On Wednesday “ZOOM Cloud Meetings” topped the free charts in the Apple and Google mobile app stores in the U.S..

“We are really focused on ensuring we continue to deliver a reliable, high-quality experience for all of our customers, prospects, schools — everybody that’s relying on us. That’s what we talked about all morning long in his staff meeting,” said CFO Kelly Steckelberg, speaking of an assembly that Founder and CEO Eric Yuan had called earlier on Tuesday.
“I think we all feel very proud of what we’re helping enable in the organization.”

According to Steckelberg, employees on the company’s engineering operations team have been adding servers and other equipment inside every one of the company’s 17 data center locations. Two more will become available this week or next week.

The company has also been increasing its capacity with its two cloud infrastructure providers, Amazon Web Services and Microsoft Azure, Steckelberg said.

“In some ways it has actually simplified the process,” Steckelberg said of employees now working from home.

Earlier this month Steckelberg told analysts to expect gross margins to be “at the lower end of our long term target of 80% to 82%” for its 2021 fiscal year.

Zoom is still comfortable with its guidance, Steckelberg also assured.

Shares of Zoom are now up 74% this year.

Disclaimer: We have no position in Zoom Video Communications Inc. (NASDAQ: ZM) and have not been compensated for this article.