Zoom (NASDAQ: ZM) On an Expansion Drive, To Open R&D Centre in Singapore

December 17, 2020 02:02 AM AEDT | By Hina Chowdhary

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Zoom (NASDAQ: ZM) On an Expansion Drive, To Open R&D Centre in Singapore

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Summary

Zoom will be opening a new R&D centre in Singapore and will hire hundreds of engineers to support its operations there.

The R&D centre is the second such investment after the company set up its data centre there in August

The company has seen a massive growth in its business in 2020 as more and more people, and companies used its services to conduct virtual meeting

Zoom Video Communications Inc. has said it would come up with a new R&D centre in Singapore which would hire hundreds of engineering staff to support its operations. The pandemic made the company a household name, which saw a meteoric rise in the users and revenues, as a medium for online work, distance education and virtual social gathering.

The R&D centre that the company is planning to open in Singapore is the second such investment this year. In August, the company set up its data centre in Singapore, its first in South Asia.

The new R&D centre is expected to go live in the third quarter of the next year depending on the safety scenario when employees can start working in the office. The centre is expected to play a major role as a source of innovation for the business, leveraging some of the professionals from Singapore and will also be aiding its existing three R&D centres in the US, China and India.

Business growth

Zoom Video Communications Inc has witnessed a rapid rise in its business in 2020. Even when the pandemic was in its initial stages, the user growth of the company was on a high trajectory. By February, the company had added 2.2 million users that were more than what it had amassed for the whole of 2019. The average daily users of the company during 2019 was 10 million, while in the month of April this year it rose to 300 million users per day.

Also Read: Zoom CEO Eric Yuan’s Net Worth Surge as Stock Skyrocket

On 18 April 2019, the IPO of the company was listed at NASDAQ and was valued at $16 billion at the end of the trading day. By June 2020, the value of the company had increased to $67 billion. By September, the share price of the company increased by 569 per cent compared to where it was at the beginning of the year.

In October, the market capitalisation of the company exceeded $140 million, making it more valuable than ExxonMobil, the 130-year-old American oil & gas conglomerate.

Share price performance

(Source: Refinitiv, Thomson Reuters)

The shares of Zoom Video Communications Inc (NASDAQ:ZM) last traded at USD 399.43 per share at the close of trade on 15 December gaining 3.44 per cent over the previous day’s close.

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