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Monday 22 November 2021

To Zoom…But where to now?

ZoomIn my post of 1st Oct 21, I postulated that the ultimate accolade was when your company name became a verb as in To Google… or To Hoover…I should have added To Zoom.

ZoomOf the many companies to prosper because of the pandemic, Zoom is clearly up there with the leaders. But conversely, it might well be one of the worst to suffer as the world tires of virtual meetings and gets back to more of the f2f variety. I attended one of my first in 18+ months at the Prince’s Trust Technology Leadership Group at the BT Tower last week and realised that there really is no substitute.

Last year Zoom grew over 330% and its profits doubled to $316m on revenues of $1b. But nobody expects that kind of growth to continue. As a result Zoom shares, which had soared last year, have been in free fall. Having risen 9-fold in 2020, Zoom hit a valuation of $170b last Oct but had slumped to $74.7b on Friday.

Zoom’s main competitor in the business world is Microsoft’s Teams. But Teams is revenue generating as part of the Microsoft 365. Facetime is another competitor in the consumer space. But we all know Apple makes mountains of money from many other sources. Zoom, for almost everybody, is free. There is now talk of adverts on Zoom. I doubt that will be well received!

So will Zoom go the way of Peloton? Will it be taught at business schools in years to come in much the same way as the one hit wonders of the craziness? Or will Zoom find a way to flourish in the new hybrid world?

Note - This post has been corrected subsequent to publication. 

Posted by: Richard Holway at 10:50

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