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Summary
- Amid the global pandemic, Zoom showed a way to stay connected for collapsing businesses and educational institutions.
- Knowing that the trend may shift in the future, Zoom is preparing to focus on other product launches.
Amongst many video conferencing software companies competing to grab the maximum market space, Zoom has undoubtedly grown spectacularly. Zoom Video Communications has fulfilled the dire need for online video calling, especially for businesses and academic purposes. Before the pandemic hit, Zoom was relatively unknown to the masses.
However, work from home and learn from home, drastically boosted the brand's awareness. People started to adapt to the new normal. While initially, there were some pain points, such as security concerns. The company quickly managed to revamp its security. Following which, Zoom continued to remain a popular platform throughout the year.
Zoom allows its users to conduct remote video or audio calls, and during the pandemic, people took full advantage of this software to host online meetings and classes. Other players in the field, such as Microsoft Teams and WebEx, are also thriving in video conferencing space. However, no one could beat Zoom as it became a household name while others remained still at bay.
Image Source: MegapixlTM
In a blog post, Zoom founder and CEO Eric Yuan expressed that the company did not envision that their product will find a place in almost everyone's electronic devices in such a short span of time. During the pandemic, people used the software for work or studying and socialising as it allows video calling 100 people in one go, which is a unique feature not provided by other social media platforms such as Whatsapp or Facebook. Apart from this primary feature, it has other business-friendly technologies as well.
Hence Zoom became a centre point for virtual family and friends’ get-togethers while people were stuck at home. By being a necessity for the masses, Zoom made its investors rich along the way. The video conferencing software firm was founded in 2011 in San Jose, California.
Image Source: MegapixlTM
Zoom's revenue increased by 367 per cent year over year in the third quarter of 2020. The whopping US$777 million in revenue in the third quarter was astonishingly impressive. The technology company boasts of more than 433,000 customers. Zoom reported substantial growth in the customer base which is up by 485 per cent from the prior-year period. Its profit and cash flow generation are also noteworthy.
However, once the COVID-19 vaccine is introduced, the world is expected to come back to normal gradually. That would mean, more people attending offices and classrooms in person than virtual video conferencing. It will be interesting to see how Zoom is geared up to face one drastic change after another. The company recently revealed the plans to expand into emails and calendar services.
