Zoom, like many other tech companies, has seen an increase in earnings during the pandemic that has pushed its valuation to $139 billion, more than Exxon Mobil’s $138.9 billion.
The teleconferencing app witnessed unprecedented surge following COVID-19 induced lockdowns that confined people at home, forcing a shift to virtual life.
Zoom’s market capitalization was $19 billion at the beginning of the year. Forbes compared Zoom to Exxon in the past 12 months and found that a huge revenue gap has been closed by the tech company.
Zoom posted $1.35 billion in revenue in the past 12 months while Exxon posted $213.8 billion in revenue during the same period.
The pandemic offered bitter and sweet experiences to both companies. Zoom saw an overwhelming increase in the use of its services as people started to embrace the new normal by working from home, while Exxon was badly hit as economies shut down, resulting in decline of oil demand, a situation that equally impacted the whole energy industry.
On Thursday, Exxon said in an announcement that it will cut 1,900 jobs in the US, as part of its global review, and its aim to curtail the strains of the pandemic.
“As part of an extensive global review announced earlier this year, the company plans to reduce staffing levels in the United States, primarily at its management offices in Houston, Texas. The company anticipates approximately 1,900 employees will be affected through voluntary and involuntary programs,” a statement from Exxon said.
Oil prices have dwindled since the outbreak of COVID-19, and show no sign of recovery in the near future. Oil companies, including Exxon are planning to divest to cleaner energy as alternate businesses.
As Exxon struggled through the strains of the pandemic, Zoom was basking on its advantages to record high earnings. The company beat earnings expectations in the Q2 that ended August 31, with a record $663.5 million in revenue, $163 million more than the $500.5 million analysts projected.
Zoom has a forecast of $690 million in revenue for the current quarter (through the end of October); the company also raised its financial guidance for the full fiscal year, through January 2021, to almost $2.4 billion in revenue, up from $623 million for the year through January 2020, according to Forbes.
The expectations are based on its current growth potential that is expected to linger for long.
As the teleconference company booms, its founder, Eric Yuan get richer. The past three months have been kind to the Chinese-American, as he has witnessed his fortune doubled. Yuan’s net worth has moved from $11 billion to $21.3 billion within this space of time in tandem with Zoom’s boom.
Zoom’s stock has risen more than 600% this year to rank among best performing stocks in 2020. A mark it earned through the unprecedented demand of its services around the world.
Another person who has benefited immensely from the company’s growth is Kelly Steckelberg, Zoom’s chief financial officer since 2017. She has seen her fortune jump from $255 million, since she debuted on the Forbes Richest Self Made Women list on October 13, to more than $340 million.
While coronavirus induced uncertainties spell doom for Exxon and the rest of the oil industry, it paves the way for Zoom and the rest of the tech industry. Earlier in the year, Apple overtook Saudi Aramco as the most valuable company in the world.
The oil industry continues to struggle amid the coronavirus pandemic. Exxon Mobil announced it is laying off up to 15% of its global workforce over the next year, including around 1,900 employees in the U.S., mainly from its management offices in Houston. The oil giant posted its third consecutive quarterly loss for the first time on record Friday, according to The Wall Street Journal, as gasoline usage has dipped drastically due to pandemic-induced lockdowns and people limiting their travel.