The coronavirus pandemic altered the way we interact with others. Unable to travel to work or school, people turned to virtual meetings and classrooms in their stead. Suddenly, reliable videoconferencing software went from a luxury to a necessity.
Zoom Video Communications (NASDAQ: ZM) has helped to fill the dire need for online video, voice, and chat services during the COVID-19 crisis. In less than a year, it went from a relatively unknown company to one whose products are used by hundreds of millions of people around the world -- and it's made many of its investors rich along the way.
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Zoom's growth has been stunning. Its revenue skyrocketed by 367% year over year to $777 million in the third quarter. More than 433,000 businesses with 10 or more employees are now Zoom customers. That's up a staggering 485% from the prior-year period.
Zoom's profit and cash flow generation is even more impressive. Its third-quarter adjusted net income rose 11-fold to $297 million, or $0.99. Meanwhile, Zoom's operating and free cash flow soared 565% and 610%, respectively, to $411.5 million and $388.2 million.
Investors responded to these spectacular growth metrics by bidding up Zoom's shares. The cloud communication leader's stock price is now up an incredible 450% in 2020.
Thus, if you invested $10,000 in Zoom's stock at the beginning of the year, you'd have roughly $55,000 today.
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Zoom Video Communications. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
