Zoom was given an annual revenue goal of $10bn at Zoom Perspectives this year.
Chief Financial Officer of Zoom, Kelly Steckelberg announced the new ambition at the Zoom analysts conference, according to Zeus Kerravala, Founder and Principal Analyst at ZK Research.
Last month, Zoom forecast its annual revenue at $4.4 billion, down from its previous estimate of around 4.55 billion.
In a video interview with UC Today (above) Kerravala explained: “Kelly did reiterate the fact that Zoom wants to be a $10 billion company.
“Eric sort of joked, sort of joked, that maybe it should be $15 billion.
“If you look at SaaS companies, there have only been four companies that have actually managed to achieve that, Microsoft, Oracle, SAP and Salesforce. The question is can Zoom actually be a $10 billion company?”
The analyst, Kerravala, believes their ambition is admirable, but the attainability of this new revenue target would require the company to more than double its current revenue.
Zoom’s CEO, Eric Yuan, said at the conference that creating a further $4bn in revenue is harder than the reaching the first $4bn milestone.
Not only that, as Kerravala points out, there are only four SaaS (software as a service) companies, which have an annual revenue exceeding $10bn.
Nevertheless, Zoom has got a secret weapon which help it to turn this dream into a reality, which is its popularity.
Zoom is popular within the user community. When Zoom has released products in the past, like Zoom Phone or its contact centre, the community has been happy to give them a chance and the same is probably true going forwards as well.
Essentially, people like Zoom and that willingness, or even eagerness, to try out Zoom’s products is a rare advantage in the business world. Of course, that is far from the complete solution. The deciding factor for any major growth plans at Zoom will need to be backed up by quality features and capabilities.
Kerravala believes if they can deliver on these features and capabilities, the company has got a “legitimate shot” of hitting $10bn per year.
Aside from the product, Zoom will encounter growing obstacles along the way, Kerravala explains: “It is harder to expand it to more areas as you become a bigger company.
“If they continue to grow Zoom apps, there is a lot to do there from a testing perspective.
