Zoom CEO on Challenges of Reviving Five9 Deal

Tom Wright

Zoom sales hit over $1bn in reported quarter

Zoom
Zoom CEO on Challenges of Reviving Five9 Deal

Zoom CEO Eric Yuan has said it’s “hard to know how to re-engage” a potential acquisition of Five9.

Yuan was speaking on an earnings call after Zoom released its quarterly numbers.

The Chief Executive did not rule out making a second attempt to acquire Five9 but said that any potential return to the table would be complicated.

“In terms of the deal, actually, nobody knows that [so] let’s see,” he said.

“It’s really hard to know how to re-engage or do the deal with Five9 because we’re two public companies.”

Zoom revealed plans to acquire Five9 in a $14.7bn all-stock deal back in July. Five9 shareholders ultimately rejected the takeover, with Zoom’s share price drop in the months that followed the bid reducing the value of the offer.

Yuan said that Zoom is currently focused on the rollout of its own contact centre offering, Zoom Video Engagement Center, which it revealed at Zoomtopia and is set to launch in early 2022. Zoom also retains its partnership with Five9 which seems the pair offer a combined UCaaS and CCaaS offering.

The CEO was speaking as Zoom published its third quarter results, which saw sales hit $1.05bn – up 35 percent year on year.

The firm now has 2,507 customers contributing more than $100,000 in trailing 12-month revenue – almost double the number in the same quarter last year.

Zoom said that Zoom Phone had year on year revenue growth in the three figures, with 30 customers at over 10,000 paid seats. It added that this growth was a “healthy mix” of both new and existing customers taking out the voice package.

Zoom Video Webinars and Zoom Rooms saw “strong demand” in the quarter.

Advertising

 Yuan also opened up on Zoom’s pilot of adverting on its platform, which sees it display adverts at the end of calls.

Currently, adverts are only displayed for users with free accounts but the CEO said this could be expanded to premium accounts down the road.

There’s huge opportunity… to think about how to monetiae that free user base differently,” he said.

“I think our team put a lot of efforts on that, and that’s something we are very excited about.”

 

 


Join over 30,000 Weekly News Subscribers