Specialist
Communications Specialist at SHI International Corp and Alliance Director at Rightpoint Software
Agenda
- Zoom Video Communications’ (NASDAQ: ZM) operating environment – growth drivers in collaboration category
- Market share dynamics between Zoom, Cisco’s (NASDAQ: CSCO) Webex, legacy conferencing vendors, and increasingly Microsoft (NASDAQ: MSFT) Teams and Slack (NYSE: WORK)
- Potential enterprise adoption headwinds
- Outlook for 2020 and beyond – phone product potential, pricing outlook
Questions
1.
Can we start with an industry-wide overview of video and voice conferencing, identifying a few key trends or drivers that you think investors should be monitoring?
2.
Do you think the conversion opportunity on this renewal cycle is stronger for Zoom and other cloud-native conferencing solutions? What leads you to believe that a larger transition might occur now relative to three or four years ago?
3.
What are the key trends or drivers across the video and voice conferencing industry that you would encourage us to be monitoring particularly closely?
4.
How many years ahead would you say Zoom’s tech infrastructure is, and should we consider its uptime advantage to be long-lasting? Do you foresee Teams being able to close that gap relatively quickly?
5.
How should we conceptualise the TAM and the opportunity for Zoom to penetrate? What portion of its growth could be from incumbency displacement – end-of-life transitions converting a Skype, Webex, GoToMeeting or BlueJeans customer – vs white space such as K12 or higher ed?
6.
Is there a way to conceptualise Zoom’s TAM penetration, appreciating it is difficult to quantify the market as an absolute dollar amount? Does this differ by SMB, mid-market, and enterprise?
7.
What do you consider to be a mid-market company by seats or MRR [monthly recurring revenue]?
8.
Do you have any incremental thoughts on Zoom’s penetration of the total market opportunity? Do you think its pace of growth differs across certain segments, whether in the mid-market or particular verticals?
9.
How should we estimate the enterprise portion of the video conferencing market? Do you think this segment would be likely to face more deals stalling due to the novel coronavirus pandemic, offsetting part of the remote work tailwind? How should we evaluate whether Zoom is an enterprise-ready product, and how this factors into its growth trajectory?
10.
Do you think the potential for certain companies going out of business will materially offset some of these tailwinds? Would you say the adjacent growth through aspects such as turning on remote functionality is the key focus for players such as Zoom?
11.
Can you elaborate on Zoom’s competitive dynamics? Do you think it can sustainably take share from the competitors we have outlined? What would you highlight as the key compelling features for customers, whether in feature functionality, integration or ease of use?
12.
How should we forecast this two-party dynamic for Teams vs Zoom to evolve under budget constraints in a recessionary scenario? Do you consider Teams’ video conferencing functionality to be sufficient enough that there is a replacement risk for Zoom?
13.
Why do you think Zoom can reap the benefits of the remote work tailwinds beyond its competitors? Can we not expect similar growth from GoToMeeting or Webex – in relation to where the predominant adoption is happening – as customers seek remote functionalities?
14.
You suggested that the addressable market spend for video conferencing has tripled over the last month. Is there a feasible way to compare Zoom’s resulting growth to that of the legacy players?
15.
Do you think Zoom will be a significantly price-discounted offering vs incumbents, once the near-term promotional activities stops? Does this price model work on a per-seat basis? Is there fixed number of subscriptions that can be allocated by the CIO?
16.
Would you expect a shift away from active licences if more wall-to-wall adoptions become the norm, as companies need to give access to virtually every single customer? Does the main licensing make more sense?
17.
Can you offer an overview of Zoom’s products, across video, phone and rooms? Are there any areas you would highlight as potential weaknesses from a prospective CIO’s viewpoint? How would you expect the product offering to change over the next few years, based on the evolution of customers’ preferences?
18.
We discussed Zoom’s video potentially being enterprise-ready, but how would you say its phone offering compares? Do you think this product aligns with what customers are seeking?
19.
What are your thoughts on Zoom’s various products, potential areas for improvement and whether its ancillary offerings are enterprise-ready? Do you think it has much of a cross-sell opportunity?
20.
What portion of Zoom’s growth do you expect to be from adding logos vs expanding the base? How frequently would you say CIOs are seeking to deploy Zoom across the entire organisation from inception, relative to bottom-up, department-by-department growth?
21.
Do you think Zoom’s adoption is largely across the entire organisation? A contracts being put in place for the course of one year? Presumably, having a contract in place would insulate Zoom somewhat from a rip-and-replace in a recessionary scenario, depending on the timing of the overall market softening?
22.
What is your outlook for the landscape over the next 12, 18 and 24 months? How does this play into your expectations for Zoom specifically? Obviously, it is a pretty positive story, but are there any risks, uncertainties or potential wildcards that you think we should be monitoring?
23.
Would you expect Zoom to double-down on security to try and tap into those larger entities?
24.
Can you share your market outlook and any incremental reasons that Zoom may run into a wall?
25.
Can we conclude with any key aspects around Zoom that we missed during our Interview today?
