The company reported strong earnings Wednesday and said it expects even more firms to start using its tools as employees increasingly work from home.
“Due to the coronavirus, we have already seen significant usage of our platform. And accordingly, we will expand our capacity to meet the increased demands of both paid and free users,” said Zoom chief financial officer Kelly Steckelberg during a conference call with analysts Wednesday evening.
All of this is leading to a boom in business for Zoom.
“Given this coronavirus, I think overnight, almost every business really understands they needed a tool like this,” Zoom CEO Eric Yuan said during the earnings conference call. “This will dramatically change the landscape. I truly believe in the future, every business would turn to video for remote workers for the collaboration.”
Even more good news could be ahead for Zoom. At least seven Wall Street analysts raised their price targets on the stock following its earnings report, with JPMorgan analyst Sterling Auty boosting his target to $150 — more than 20% above current levels.
“The virus outbreak provides Zoom with an opportunity to showcase how their product ‘simply works’ and is a potential driver for the long-term revenue opportunity in Asia,” Auty wrote in a report after the earnings release.
“Ultimately, getting more people to try the solution we believe will lead to even better long-term market penetration,” Auty added.