Zoom Video cashes in on pandemic scourge
For many confined to home meetings and video conference calls during lockdown moments, scramming for apps that will keep them functional in the pseudo-offices has become a top priority and this is where digital apps couched for such purposes come in.
Zoom, a business communication tool created nearly a decade ago is experiencing its greatest moments as it exploded at the beginning of the year as millions of people made a mad rush for it in this lockdown season. It gained prominence in business meetings and quite functional for hosting events such as parties and religious events essential in hosting. Essentially, the work from the home initiative has meaningfully accelerated the platform’s use.
As the app became the go-to video conferencing platform, its revenue rose to 169% from the previous year’s $328 million for the three months ending in April. In acknowledging the presence of the pandemic as a contributing factor in the colossal usage of the platform, the CEO of Zoom, Eric Yuan said,
“Work-from-home and social distance initiatives have meaningfully accelerated the adoption and traffic on the Zoom video communications platform” so in effect, the pandemic has generated a big spike in Zoom’s number of free users, who can host up to 40 minutes.
Despite the popularity, profit, and demands Zoom is experiencing, it is faced with its own competition from $ 14 billion in 2019 to $50 billion by 2020. The company has also experienced some level of technical glitches and security issues that were nonexistent in the obscurity stage. It has had to resort to bug fixes suspending all-new features for a 90 days duration in order to focus on privacy and security measures, with the measures set to conclude by the end of June.
Although Zoom has unarguably benefited from greater usage during the pandemic, it’s also received unwanted attention. Yuan replies,
“During the crisis, with good intentions, we opened our platform to unprecedented numbers of first-time users without fully considering the challenges it would bring to those who did not have full IT support or established protocols for security and privacy. As a result, we have experienced negative press related to meeting disruption, security, and privacy issues”.
Regardless of the teething problems, it is encountering with the new status of stardom, it has remained resolute as the company has upgraded its outlook for the next three months with forecasted revenues between $495 million and $ 500 million. The CEO remains positive, as the platform is witnessing an “elevated level of participants” despite the easing of lockdown restrictions.