Zoom in ‘early stages’ of security deal with Google: CFO

Zoom (ZM) is phoning a friend.

The video-conferencing platform is in the “early stages” of inking a deal with Google to boost the security of its popular platform, Zoom CFO Kelly Steckelberg said on Yahoo Finance’s The First Trade. “We will have more to talk about that in the future.”

It was reported earlier this week by The Information that Zoom was in talks with Google’s cloud division for a security deal.

The potential deal is the latest effort by Zoom to quiet concerns on the privacy of its platform.

The explosion in the use of Zoom amid the coronavirus pandemic has exposed privacy issues. Zoom bombing — where hackers inexplicably jump into a Zoom call — have increased in frequency in recent months of heightened consumer and business use.

FILE – In this April 23, 2020 file photo, members of the Vermont House of Representatives convene in a Zoom video conference for its first full parliamentary online session in Montpelier, Vt. With people’s social lives moved indefinitely online, a bevy of tech companies want to unseat fast-rising Zoom from its perch, given security concerns and other issues with the video-calling service. There’s Houseparty, Jitsy, along with offerings from Google and Microsoft. Now, Facebook is stepping into the fray, hoping that its massive user base will give it the needed edge to drown out the competition in this already crowded field. (Wilson Ring/Zoom via AP)

Zoom founder Eric Yuan has apologized for the issues, and has worked diligently to hire security and privacy experts to fix the problems. Many of the security flaws in Zoom are expected to be addressed within the next 90 days, Yuan has said.

Despite those privacy concerns, Zoom is still fresh off a bang up first quarter this week that shocked even the most optimistic analysts on Wall Street. First quarter revenue surged 169% year-over-year. Operating profits boomed more than six times versus last year to $54.6 million.

The impressive results sent Zoom shares into a new orbit — the stock is up 9% in the last five sessions and 192% year-to-date.

Brian Sozzi is an editor-at-large and co-anchor of The First Trade at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

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