СВОДНЫЙ ОБЗОР ФИНАНСОВЫХ РЫНКОВ
INVESTING IN ZOOM: WHAT TO CONSIDER
Zoom Video Communications Inc. is a technology company which was founded in 2011 and is headquartered in San Jose, California. The company designs, develops and markets advanced enterprise video communication solutions that are based on Zoom’s cloud platform. These solutions enable individuals and companies of all sizes to enjoy innovative video and audio conferencing capabilities, using the Zoom Rooms product from any location around the world.
WHO SHOULD INCLUDE ZOOM IN THEIR PORTFOLIO?
Zoom’s investors often answer one of the following descriptions:
Investors following the latest innovations in the technology and business arenas.
Investors who trade, based on global news events that drive remote operations.
Investors seeking high-growth potential in future-facing markets.
Supporters of revolutionary innovations and communication methods.
WHAT SERVICES DOES ZOOM OFFER?
Zoom Video Communications’ technology is available for a wide variety of mobile and desktop devices and supports all collaborative needs for webinars, online meetings, chats, and more. The conference or chat initiator, who is referred to as the “host,” can invite participants by sharing the conference number and password or generating a dedicated link. Participants can then join by video or audio and enjoy high-quality communication features.
Prominent features include:
A seamless sync with the user’s calendar system.
Up to 1,000 different video participants and 49 videos on a single screen.
Replacing the user’s background with a selection of virtual backgrounds, including a custom-made image.
“Touch Up My Appearance:” A softening filter to improve users’ visual appearance on video.
Speaker view/Gallery view: Users can choose between watching all conference participants at once or switching between them based on whoever is currently speaking.
Screen share: Users can discuss presentations, documents and other visually supported topics by sharing their computer screen view with other participants.
Joining by telephone call-in.
Secure Socket Layer (SSL) encryption.
Recording meetings locally or to the cloud.
Searchable, auto-generated conference transcripts.
ZOOM’S BUSINESS MODEL & PARTNERSHIPS EXPLAINED
The company offers a few pricing models for users, based on their specific needs. Users can opt for the free model, which includes hosting conferences of up to 100 participants, with group meetings limited to 40 minutes and 1 on 1 meetings, which are not limited at all. Paid models allow longer or unlimited conference time and include additional features such as a personal meeting ID, usage reports, Skype for Business interoperability, and more.
Over the years, the company has won several important industry awards, including the 2019 Reader’s Choice Awards, 2019 Inc. 5000 list of the fastest-growing private companies in America, Frost & Sullivan Global Video Conferencing Company of the Year 2019, TMC 2018 Communications Solutions Products of the Year Award, and more. The company was also named a Leader in Gartner’s list of Magic Quadrant for Meeting Solutions for 2019.
Company business clients include Uber, Veeva, Bayada, 21st Century Fox, Delta, Autodesk, and countless others. Zoom surveyed its users to find that 92% report an increase in performance related to their upgraded conferencing capabilities, 82% said that the product provided them with a greater sense of trust, 91% reported an increase in their sense of engagement, and 85% of surveyed users said that their overall video usage increased.
The company also offers multiple integrations to enhance the product’s benefits, some of which were developed by Zoom’s own team and others by external partners:
Integrations for meeting scheduling and starting: These integrations include Workplace, IBM Watson Workspace, Salesforce, Skype, Firefox, Hipchat, Appointlet, Microsoft, and Google. They enable users to start and join meetings quickly, transition from a direct message or team chat directly to a real-time audio or video meeting, schedule Zoom Rooms meetings directly from external accounts, and more.
Content sharing integrations: Integrated products include partners such as Microsoft, Google Drive, Dropbox, Box, Panopto, and others. They enable users to share static content from an external drive, upload files directly from external accounts, automatically upload recordings, and more.
Unified login: Integrations include Microsoft, Google, Okta, Facebook, Centrify, SRA, and others. They enable users to have single sign-on and quick login capabilities.
Marketing automation integrations: Integrations include companies like Zapier, Marketo, Eloqua, and Pardot by Salesforce. They allow users to take their Zoom meetings to the next level by capturing information from registrants and creating automated follow-up offers; generating leads, and interacting with additional applications.
Room collaboration integrations: These integrations by Intel Unite and Crestron enable users to add collaborations between in-room meeting participants and remote users.
WHO CAN BENEFIT FROM ZOOM’S PRODUCTS?
Professional teams looking to collaborate with colleagues, partners and clients by joining a video conference from various locations.
Families and individuals who want to stay in touch with loved ones all around the world.
Remote employees communicating with their managers on a regular basis.
Virtual conferences looking to combine informative content with online networking.
And many others.
WHAT DRIVES ZOOM’S STOCK PRICE?
Zoom’s initial public offering of the ZM stock took place at the Nasdaq in New York on April 18, 2019. Here are some of the factors that influence its stock price on the market:
Market education: Generally speaking, the company’s product requires certain market education efforts, as some individuals and businesses are still struggling to replace physical interactions with remote ones. As the world transitions to remote employment and companies realise that globalisation enables them more flexibility thanks to products like Zoom’s, the use rate and growth are expected to skyrocket.
Global events driving remote operations: One meaningful event that demonstrated the power of Zoom and its ability to help companies and people around the world was during the Coronavirus outbreak in early 2020. As a large percentage of the business sector was forced to switch to remote employment, companies that had never before used conferencing tools, embraced Zoom and used it for meetings, presentations, webinars and virtual events.
During the crisis and in order to serve customers in need wherever they may be, Zoom announced its international expansion to 11 additional countries, the enablement of its beta services in 24 new countries, and multilingual support. Zoom’s ZM stock experienced massive growth during this turbulent time and proved that the company was vital and significant for the private and business sectors.
In the fourth quarter of fiscal year 2020, Zoom Video Communications reported total revenue of $188.3 million, up 78% year-over-year. By the end of the fourth quarter, the company had around 81,900 customers around the world with more than 10 employees each, up approximately 61% from the same quarter in the last fiscal year. Zoom also reported having 641 customers with more than $100,000 in trailing 12 months’ revenue, representing an increase of approximately 86% as compared to the same quarter last fiscal year.
IN CONCLUSION: ZOOM IS INNOVATION ON THE RISE
The company offers practical and user-friendly tools that support today’s needs and tomorrow's aspirations. Zoom embodies the innovative approach to technology, business, and networking. We invite you to learn more about the ZM stock and trade on eToro.* This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation. * Past performance is not an indication of future results. All trading carries risk. Only risk capital you're prepared to lose.