Zoom More Than Quadruples Sales

Zoom Phone highlighted as growth driver

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Zoom More Than Quadruples Sales
Unified CommunicationsLatest News

Published: March 2, 2021

Tom Wright

Managing Editor

Zoom has reported an explosive Q4 which saw sales rocket 369 per cent.

Revenue hit $882.5m in the quarter ending 31 January, rounding off a stunning year that saw total revenue grow 326 per cent to $2.65bn.

The accelerated growth in Q4 has given investors confidence that Zoom can continue to grow post-pandemic, leading to the firm’s valuation rising 10 per cent after the results were published.

Zoom highlighted growth in the enterprise space as being key to the results, saying that the number of Global 2000 customers generating at least $100,000 in annualised recurring revenue doubled during the year.

However, Zoom’s penetration of Global 2000 businesses stands at just 14 per cent, which CEO, Eric Yuan, said is a huge opportunity for growth.

“If you look at our history the way for us to grow our revenue is from the bottom up,” he said. “From one-user, two-user; one department to multiple-department, and then we talk to the CIO, right? And we are doing something similar.

“If you talk with the enterprise customers when you do not have a very strong brand, normally they even do not want to talk with you. Because of last year, I think Zoom has become a household brand, I think we have more and more opportunities in the pipeline”

“I think the rest of the Global 2K customers are basically looking at the international growth opportunity. I think the future is bright as long as we keep improving on execution.”

Phone Growth

Zoom Phone is seen as one of the key products that can continue Zoom’s growth post-pandemic and featured heavily during the earnings call with investors. Yuan said a flagship customer coup came in the form of Universal Music Group which is adopting Phone for its global workforce.

At the close of the year, Zoom had around 10,700 Phone customers with more than 10 employees – up 267 per cent year on year, and 18 customers with more than 10,000 seats.

The growth was split at 60 per cent in the SMB market and 40 per cent in the enterprise space.

Yuan also said that the channel has played a crucial role in Phone’s adoption, particularly distributors and master agents.

Potential Acquisitions

Recent reports have suggested that Zoom has been contemplating an expansion into the contact centre space – either via acquisition or the building of its own solution.

Yuan did discuss Zoom’s contact centre plans in the context of Zoom Phone, saying that the strategy remains to partner with other providers.

“In terms of a contact centre I think, for now, our strategy is to work together with other solutions like Five9, Genesis, InContact, Talkdesk and others. I think that is working very well.

“Customers talk about how you seamlessly integrate with others. Take Five9, for example, and a good partner. We share the same vision, how to further improve their product experience. I love that.

“I think to have a much better seamless integration, that’s the right approach and truly deliver happiness for our mutual customers.”

Eric-Yuan
Eric Yuan

The CEO also discussed the prospects of acquisitions, revealing that he doesn’t think it is possible for Zoom to build out all of the propositions it wants from scratch.

“When we started, we were literally focusing on one thing – video conferencing app,” he said.

“Look at Zoom video conferencing, look at Zoom Phone, look at Zoom Rooms, look at our built-in chat, and you look at also webinar – I think that’s a huge opportunity.

“Almost in each area, we should double down.

“I think for sure, we cannot build everything, right? We’ve got to be very careful [with] what we should build by ourselves [and] what kind of products and new categories we should partner for or maybe go through the acquisition.

“Overall, I think to become a part of our company will open up a great opportunity. We’re not only a video conferencing company anymore.”

 

 

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