The high-flying Zoom video conferencing service, which saw demand skyrocket during the coronavirus pandemic, is now worth more than ExxonMobil, one of the world’s largest oil and gas companies.
As of 2:30 p.m. ET, Zoom was sporting a market valuation of $ 139 billion, compared to Exxon’s $ 138.9 billion. Zoom started the year with a market cap of $ 19 billion. While Zoom recorded revenue of $ 1.35 billion in the past 12 months, Exxon, by comparison, recorded revenue of $ 213.8 billion in that period. .
Exxon said Thursday it will lay off 1,900 U.S. workers, the latest effort to cut costs and improve efficiency during the pandemic. Exxon has seen its operations under pressure from the coronavirus like other energy companies, many of which have taken steps to improve balance sheets, cut staff and, in some cases, suspend dividends. West Texas Intermediate, the benchmark US oil index, is currently trading at around $ 36 a barrel, up from over $ 62 in January.
Zoom founder Eric Yuan, meanwhile, has seen his own fortune nearly double in the past three months. Since appearing on the TBEN 400 list of the richest people in America, which used stock prices as of July 24, his net worth has nearly doubled from $ 11 billion to $ 21.3 billion at 2:30 p.m. ET on October 29.
Yuan’s fortunes have skyrocketed alongside Zoom’s business, which has grown at a rapid pace as millions of people working from home continue to rely on video conferencing. Zoom is one of the best performing stocks to date in 2020, having largely withstood the pandemic-induced sell-off in March and increasing by more than 600% on the year.
The company significantly exceeded earnings expectations in the second quarter ended Aug.31, with revenue of $ 663.5 million (far exceeding analysts’ forecast of $ 500.5 million) – and it plans to continue to grow at a rapid rate. Zoom is now forecasting up to $ 690 million in revenue for the current quarter (through end of October); the company also raised its financial guidance for the full year, through January 2021, to nearly $ 2.4 billion in revenue, from $ 623 million for the year through January 2020, because it takes into account an even greater demand for remote work solutions for businesses. “
Yuan is not the only one who is enriched by the success of his business. Zoom’s CFO since 2017, Kelly Steckelberg, has also seen her fortune grow. She debuted on the TBEN Richest Self Made Women list on October 13 with a net worth of $ 255 million. It is now worth over $ 340 million.