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Will Zoom’s acceleration continue?

  • Multi Asset
  • TMT
  • North America

As lockdowns forced people to work from home, finding new ways of communicating with colleagues became essential. Many remote working technology companies received a boost – and with 1.25 billion information workers across the world, according to a 2018 estimate from Forrester, there is vast potential for this sector. Zoom Video Communications Inc, founded in 2011 in the US by ex-Cisco executive Eric Yuan, is among those proliferating – and, according to the Financial Times, has been one of the top-performing companies this year in terms of adding market capitalisation. Third Bridge Forum interviewed several experts working in this area to learn more about the potential for Zoom’s technology and the obstacles that stand in its way.

Zoom’s main offering is online video conferencing and, although it is predominantly associated with business meetings, its service is also being used in the education, government and healthcare sectors. This versatility could be one of the reasons Zoom recorded such huge uptake during the pandemic. The number of companies (with at least 10 people) subscribing skyrocketed by 458%, from 66,300 to 37ev0,200, during May-July. Meanwhile, during the same period, its revenue stood at USD 663.5m, up 355% YoY – and as a result of this better-than-expected performance the company revised its growth estimate for the full year to USD 2.37bn-2.39bn. Subsequently, its shares jumped by 47% in intraday trading on 1 September 2020.

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