Videoconferencing firm Zoom generated $328.2m in revenue during the first quarter of fiscal year 2021, marking a 169% year-over-year increase thanks to a global surge in remote working during the coronavirus pandemic.

The California-based firm now has 265,400 customers with more than 10 employees on its books, up 354% year-over-year.

Unadjusted net income for shareholders rose from $0.2m in the year-ago quarter to $27m, with earnings per share standing at $0.09.

Analysts had been anticipating big gains for the quarter ending 30 April, but Zoom’s Q1 earnings appear to have surpassed expectations.

“We were humbled by the accelerated adoption of the Zoom platform around the globe in Q1. The Covid-19 crisis has driven higher demand for distributed, face-to-face interactions and collaboration using Zoom. Use cases have grown rapidly as people integrated Zoom into their work, learning, and personal lives,” said Eric S Yuan, founder and CEO of Zoom.

“I am proud of our Zoom employees who dedicated themselves to support customers and the global community during this crisis. With their tremendous efforts, we were able to provide high-quality video services to new and existing customers.”

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Pre-pandemic, Zoom was little known outside of enterprise circles. In December 2019 it had 10 million daily meeting participants. By March, that figure had soared to 200 million and in April it jumped again to 300 million. However, Zoom’s success has brought with it additional scrutiny from privacy and security researchers.

Over the last few months Zoom has taken steps to remedy those problems, including the acquisition of secure messaging and file-sharing service Keybase in a move to accelerate its plans to add end-to-end encryption to its platform.

Zoom revenue: Rosy outlook for the rest of the year

In Q2, Zoom expects revenue to be between $495.0m and $500m. For the rest of the fiscal year, Zoom expects revenue to be between $1.775bn and $1.8bn

“It was widely expected that Zoom would deliver a blow-out of a result. And sure they did,” said Per Roman, co-founder and managing partner of investment firm GP Bullhound.

“In no uncertain terms was this an extraordinary quarter. Adoption of Zoom as the de-facto standard for video communication is well underway. I am already seeing Zoom being used as a verb similar to Google, which is not to be under-estimated for long-term stickiness.

“However, their success has been well noted for a long time by the stock market and the company is priced to perfection. There needs to be many quarters of continued extraordinary growth to catch-up with their $58bn market capitalisation. Buy on weakness.”

Zoom’s share price is up 217% year-to-date. Shares are up 4% since the release of its Q1 earnings.

Read more: Zoom unveils 90-day plan to rebuild reputation