SAN JOSE (CBS SF / CNN) — The Zoom boom is real.
Zoom, based in San Jose, said Tuesday that its revenue skyrocketed 169% from the prior year to $328 million for the three months ending in April, as it became the go-to video-conferencing service for many stuck at home during the pandemic.READ MORE: San Francisco Bay Area Dodges Weather Threat; Dozens Of Lightning Strikes Remain Offshore
The company reported an even more astronomical spike in business customers. There were roughly 265,400 companies with more than 10 employees using its platform, a 354% increase from the year prior.
Shares of Zoom rose nearly 4% in after-hours trading Tuesday following the earnings report. As of Tuesday’s close, the stock had tripled since the beginning of the year.
“The COVID-19 crisis has driven higher demand for distributed, face-to-face interactions and collaboration using Zoom,” CEO Eric Yuan said in a statement.
Yuan said the pandemic had also resulted in a big spike in Zoom’s number of free users, who can host calls up to 40 minutes long before being asked to pay.READ MORE: Update: Former California Senator Barbara Boxer Assaulted, Robbed In Oakland's Jack London District
While Zoom’s business has undoubtedly benefited from greater usage during the pandemic, it’s also received unwanted attention.
A host of security issues emerged in early March, including controversies over the level of encryption it provides and the practice of “Zoombombing” — where trolls interrupt meetings to share profanity or pornography — prompting scrutiny from US authorities and temporary bans from schools in New York City and Singapore.
Zoom responded by scrambling to make fixes, suspending all new features for a period of 90 days in order to focus on privacy and security measures. That 90-day period is set to conclude at the end of next month.
Zoom is also facing growing competition from larger tech companies, including Facebook and Google.MORE NEWS: COVID Vaccine: Sonoma County Free One-Day Admission to Summer Fun Fest After Vaccination
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