Maxim Tamarov is a news writer covering mobile and end-user computing. In the first half of 2021, Zoom made some important product announcements that helped send the stock higher. The vaccine will not kill Zoom. In 2021, we believe Zoom will still focus on product development, but eventually, they will balance the act between user growth and monetization to surprise total revenue on the upside. Shares of Zoom Video Communications (ZM -0.28%) were up 14.7% in the first half of 2021, according to data provided byS&P Global Market Intelligence. Eric Yuan is the captain of Zoom. (Zoom 2021) Over 90,000 schools used Zoom at the height of the pandemic. He found Zoom out of his frustration at WebEx. On average, they predict the company's stock price to reach $115.86 in the next year. The pandemic made the enterprise wholly reliant on virtual meeting platforms, but new research reveals Zoom dominates the global online market share and ranks No. As we all know, Zoom benefitted immensely from the pandemic lockdowns, turning the company into a household name and a verb. Zoom is the leader in modern enterprise video communications, with an easy, reliable cloud platform for video and audio conferencing, chat, and webinars across mobile, desktop, and room systems. However, as our way of work and play has changed forever, we believe Zoom's product has a permanent place in our lives one way or another. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Overview Reviews Alternatives Likes and Dislikes. In 2020, there were several price targets over $500 per share. We argue Zoom is an attractive investment at 30x EV/FY22 Sales. Gartner's Magic Quadrant shows that Zoom is the leader for Meeting Solutions. Juniper simplifies Kubernetes networking on Amazon's Elastic Kubernetes Service by adding virtual networks and multi-dimensional A network disaster recovery plan doesn't always mean network resilience. 1 in 44 countries. The global market share of video conferencing in the year 2028 is expected to reach $12.99 billion. Popular. Fitness through OnZoom, integration with Peloton (PTON). If you feel the risk of Zoom going obsolete due to disruption is significant and will happen soon, I don't blame you for giving Zoom a pass. Gaslighters have two signature moves: Are you being gaslighted at work? With net margin of 13.43 % company . Overall, we find the current valuation to be extremely attractive to start a position. As of June 2021, Zoom Meetings has captured well over a 50% market share. The way I see it, the company is growing by leaps and bounds organically and is armed with nearly $5 billion in cash, cash equivalents, and marketable securities. The Web and Video Conferencing SaaS market in the U.S. is estimated at US$1.4 Billion in the year 2021. "The fourth quarter marked a strong finish to an unprecedented year for Zoom . While this moat isn't seen as necessary as the first two, it would help Zoom to retain customers and maintain a large user base to monetize. 51% of Zoom customers are in United States In effect, Zoom is listening, watching, and collecting the most granule data from people's lives, at work and home. Enter your meeting ID provided by the host/organizer. The companies using Zoom are most often found in International revenue was 30% and grew 629% vs. 300% domestically. North American Communications Resource, Inc. For the short to medium term, Zoom Phone, better monetization, K-12 free users' conversion, and expansion into telehealth, commerce, workflow, fitness, and internationally should provide a surprise boost to Zoom's growth. Definitely not! We have data on 106,041 companies that use Zoom. For the full 2022 fiscal year, Zoom called for adjusted earnings of $3.59 to $3.65 per share and $3.76 billion to $3.78 billion in revenue, which would represent 42% growth. Create a list of the investments you want to track. He previously wrote forThe Daily Newsin Jacksonville, N.C., and theSun Transcriptin Winthrop, Mass. Gartner Peer Insights reviews constitute the subjective opinions of individual . The figure is still extremely high and demonstrates exceptional operating leverage. It remains the best-of-breed for work-from-home communication solutions. Peloton and Rakuten added Zoom Phone shortly after Zoom Meetings. While Zoom is much larger, it is also a much more formidable company that possesses way more avenues to growth. It offers unlimited video meetings with up to 100 participants, 1GB storage. and 6% are in United Kingdom. On Seeking Alpha, all of the latest articles have been bearish. ET, 5 Investment Opportunities With Over 700% Upside, According to Cathie Wood, 1 Green Flag for Zoom in 2022, and 1 Red Flag. Zoom's net promoter score ('NPS') is incredibly high +70. More importantly, it will also bring meaningful data at the most granular level (think Twilio and Facebook). In the pop-up window, click Open Zoom Meetings (PC) or Open zoom.us (Mac). Cost basis and return based on previous market day close. The company is showing its growth is sustainable as we move further from the start of the pandemic. Microsoft's growth was strong in the midmarket, while Zoom saw growth in large enterprises, according to Synergy. Thus, it is worth knowing the facts that could determine the stock's prospects. Here's a quick overview of why. Do Not Sell My Personal Info, Video Conferencing & Visual Collaboration. Q3'21 revenue was 24% higher than its entire revenue in FY20. Other major and competing products in this category FY2022 and beyond looks good too. The number of customers contributing . Its most recent quarterly revenue increased four-fold YoY, 25% bigger than the entire financial year of 2020. As it grows, it adds more value, and users will find it very hard to leave. Its most recent quarterly revenue increased four-fold YoY, 25% bigger than the entire financial year of 2020. It serves the education, finance, government, and healthcare industries. Cookie Preferences Microsoft Edge. Next, let's look if Zoom is reasonably priced to start a position? Shares of Zoom helmed by CEO Eric Yuan were trading down 18 percent to $197.94 in early afternoon trading. Zoom Video Communications market cap as of December 07 . filtering and search criteria. based on company size (Revenue). By scanning Worldwide Projector Zoom Lens Market In-depth Research Report 2021, Forecast to 2026 . In its most recent Magic Quadrant, Gartner labeled 8x8, Cisco, Microsoft, RingCentral and Zoom as the leaders in the UCaaS market. Yes, many of these growth avenues are still in the early days, and a repeat performance of 2020 is not on our minds. One company could determine if U.S. corporate profits rise to a record next year, Zoom Video stock price target cut to $75 from $95 at Deutsche Bank, Zoom Video stock price target cut to $100 from $120 at Mizuho, Zoom Video Communications Inc. stock rises Thursday, outperforms market, Zoom Video Communications Inc. stock falls Wednesday, underperforms market, Zoom Video Communications Inc. stock falls Tuesday, still outperforms market, Zoom Video Communications Inc. stock falls Monday, still outperforms market, Zoom Video stock falls toward nine-day losing streak, and lowest close since January 2020, Communications Services Up on Holiday Spending Optimism -- Communications Services Roundup, Zoom beats on earnings and hikes annual profit forecast, but fourth-quarter guidance disappoints, sending stock down. This makes Zoom the world's 787th most valuable company by market cap according to our data. The management seems excited about the progress but remained tight lip about the details. Please. Join on any devicePC/Mac, tablet, or phone. According to Synergy Research Group, Microsoft and Zoom increased their market shares by almost 10 percentage points.At the same time, the number of global UCaaS subscribers grew 41% from 2019.. Microsoft's and Zoom's subscriber bases rose to about 1 million people each in 2020. What are the top industries that use Zoom? Intraday Data provided by FACTSET and subject to terms of use. a majority (73%) are small ($1000M) and 13% are medium-sized. It's also worth noting that, unlike Teams, Zoom doesn't enable 1080p by default instead, it uses 720p default, though users can manually change their video quality settings. Safari. Zoom: What's Next. With the vaccination ramping up in 2021, the market is swift to rotating from Zoom to other investments. Zoom has a 5.49% market share. -Paying customers with more than ten employees was 433.7K, up 485% YoY from 74.1K and made up 62% of total revenue. The number is in-line with Zoom delivering about 30% revenue growth, which is not a lot to ask as Zoom's DBNER is already at 130%. Q4'21 revenue will be almost 40% higher than the entire revenue in FY20. Zoom, Teams, Skype, Webex: Business collaboration software becoming a battleground, Aternity says by Brandon Vigliarolo in Software on February 11, 2021, 3:00 AM PST Hybrid work models are. Sony's share lifted by 1.9% with 1.96 million units sold. Sony's annual revenue for 2021 was $84.594B, an 11.32% increase from the last year. By the most conservative estimates of global Telephoto Zoom Lens market size (most likely outcome) will be a year-over-year revenue growth rate of XX% in 2021, from US$ 2695.8 million in 2020. As a reminder, Zoom was valued at 36x at IPO and around 40x EV/Sales pre-pandemic. However, if they can manage to make Zoom ubiquitous for B2C like Skype for consumer use, it would become another massive revenue opportunity. Keep in mind that many analysts are only looking one year out. Search Home; Reports; Covid . Online meetings for up to 250 people. Jon Quast owns shares of Zoom Video Communications. There are currently no items in this Watchlist. Some pundits had called it just a pandemic stock and suggested its growth would reverse in 2021 and beyond. The U.S. Market is Estimated at $1.4 Billion in 2021, While Asia-Pacific is Forecast to Reach $2.4 Billion by 2026 The Web and Video Conferencing SaaS market in the U.S. is estimated at US$1.4 . Thus, Zoom's market cap of $100B and its FY21 revenue of $2.58B still have room to grow even further. Then on June 9, it announced Zoom Phone Appliances, integrating a hardware component to its software with the goal of simplifying hybrid work (part time at home, part time at the office). According to the report, CrowdStrike owns "14.2% total shares of the 2021 endpoint security market and brought in $986.1 million in revenue, demonstrating 75.1% growth." IDC's report demonstrates CrowdStrike's market leadership as the company continues its trajectory to outpace competitors in innovation and strategy. Operating margin was 37.4%, up from 12.8% in Q3 last year, and a decrease from Q2'21's margin of 41.7%. Their ZM share price forecasts range from $72.00 to $260.00. When asked if you want to open zoom.us, click Allow. We highly recommend reading this blog post about Zoom's verticalization, where JJ Oslund explains how new companies may pose the biggest threat to Zoom by carving out the 'edge cases' that Zoom cannot meet due to its lack of focus. I runSleep Well Investmentsto find high-quality businesses that perform over multiple economic cycles, helping you to sleep soundly at night.I am always eager to learn and open to collaborations.I also write for multiple SA marketplace services.Articles are my own opinion. Zoom Rooms is the original software-based conference room solution used around the world in board, conference, huddle, and training rooms, as well as executive offices and classrooms. The FY21 revenue of 2.58B is a five-fold increase from FY20. His rise to success is a well-documented and inspiring one, so we'll show his Glassdoor rating to give you a preview of who he is as a CEO. Interestingly, as offices reopen, Zoom Phone will be a surprise growth driver. If I were trying to predict Zoom's price over the next 12 months, I'd be having a hard time, too -- it's simply too short a time horizon for investing. Moreover, even bullish analysts are cooling in their enthusiasm. Zoom was built from the ground up for our customers. If 2020 was the year Zoom rode the pandemic to skyrocketing success, 2021 could be the year the videoconferencing company comes back down to Earth. Zoom Partners bring Zoom's communications platform to market through alliance, sales, and service partnerships. Q3'21 results show that 38% of revenue came from customers with less than ten employees, a significant shift from <20% in Q4'20. Zoom also bought Five9, a cloud-based company customer service platform, in July. Zoom's competition is plentiful. Stock has delivered two upward corrections of an equal size recently and according to the Overbalance methodology, sentiment remains bearish. Shares of Zoom Video Communications (ZM 7.41%) were up 14.7% in the first half of 2021, according to data provided by S&P Global Market Intelligence.In the first several weeks of . We also use cookies to enable you to personalize your use of our site, to provide you enhanced functionality and to continuously improve the performance of our site. 0.0. Log in to see them here or sign up to get started. Share this post. Zoom has grown its market share by more than 2.5x in 2020 over the prior year. At the same time, the number of global UCaaS subscribers grew 41% from 2019. How big is the video conferencing market? The year before, both had a "negligible" market share in UCaaS, according to Synergy. But it isn't going to stop. As Zoom expands features, use cases, and integrates deeper into other platforms, we believe Zoom would also acquire the high switching cost moat. middle east video conferencing market is anticipated to register significant growth over the upcoming years, primarily due to the introduction of innovative and high-definition audio-video. (Zoom 2021) Zoom's valuation exceeded $100 billion during the pandemic, a 383% increase from January 2020. This is the foundation upon which we continue . Heres how to recognize the signs. We use the best indexing techniques combined with advanced data science to monitor the market share Unsurprisingly, the two biggest rivals are Microsoft and Cisco. This browser is no longer supported at MarketWatch. Moats are commonly categorized into four types: Network effects, low costs, high switching cost, and intangible assets. Zoom Video Communications EPS for the twelve months ending October 31, 2022 was $2.29, a 39.1% decline year-over-year. This achievement alone demonstrates Zoom possesses an incredible combination of moats in branding and network effects. Zoom expanded its market opportunity with new products. All quotes are in local exchange time. What's attractive about Zoom is its Target Addressable Market ('TAM'), reportedly worth about $50B a year just within the Unified Communication as a Service ('UCaaS'). The firm's sales in the last three months of 2020 were up 370% compared to the same period in 2019, hitting $882.5m. In 2020, Cisco made significant changes to its collaboration business, which includes Webex. Learn more about the top Zoom competitors & alternatives. They include the legacy video communication tools such as GoToWebinar, GoToMeeting (both owned by LogMeIn), On24 (private), Skype (MSFT), Webex (CSCO), Teams, Slack (WORK), and many more. The Forward EV/Sales is based on the premise of annualized Q4'21 revenue of $810M, or $3.24B for FY22. Zoom Phone makes Zoom an end-to-end communication solution on the cloud, which helps Zoom enter a new market, Unified Communication as a Service ('Ucaas'). VaaS and USB video drive video conferencing market Changing business priorities drive cloud UC adoption, New Masergy UCaaS feature helps avoid overpayments, Juniper's CN2 supports Kubernetes networking on AWS, Ensure network resilience in a network disaster recovery plan, Cisco teases new capabilities with SD-WAN update, Ukrainian software developers deal with power outages, 8 IT services industry trends to watch in 2023, Top AWS cloud consultants earn 6-to-1 revenue multiplier. Zoom's next leg of growth is likely to come from Zoom Phone, OnZoom, Zoom Webinar, Zoom App Marketplace, and Zoom Room. NASAs Orion capsule blazes home from test flight to moon. Privacy Policy 27 brokers have issued 12 month price targets for Zoom Video Communications' shares. The year before, both had a "negligible" market share in UCaaS, according to Synergy. Given these strengths, Zoom is a stock I'd bet on over the next five to ten years. Zoom Video Communications, Inc., founded in 2011, is a communications technology company in the United States. Remember that Zoom is a best-of-breed SaaS company that can touch everyone (almost)'s lives. Gas prices are now lower than at this time last year. Further integration with other platforms will make Zoom a fundamental building block in many verticals and industries. The Zoom Video Communication Inc. accounted for around 15% of the video conferencing market share in 2020. It's no wonder that Zoom was one of the fastest-growing apps during the pandemic. For the best MarketWatch.com experience, please update to a modern browser. Click Join. In 2020, Zoom issued 385,200 new licenses. Shares of Zoom Video Communications Inc. sank 1.0% in afternoon trading Tuesday, putting them on track to suffer the longest losing streak in 18 months. +New features/services offered on the platform over time. Is this happening to you frequently? There are a lot of use cases and verticals that Zoom is already exploring. We are excited about the upselling opportunities in education as free users convert and add more modules. By the most conservative estimates of global Modular Zoom Lenses market size (most likely outcome) will be a year-over-year revenue growth rate of XX% in 2021, from US$ xx million in 2020. Disclosure: I am/we are long ZM. The major factors contributing to the growth are the emerging trend of remote working, geographically scattered business operations, and increased globalization. Finally, it will also allow Zoom to accelerate its international expansion. Zoom Video Stock Slides on Guidance Miss. Should You Buy the 5 Highest-Paying Dividend Stocks in the S&P 500? However, stock has been trading lower since and has moved to the early-2021 low at $340. However, Zoom's high valuation and the short-term sentiment that Zoom is a Covid stock are not good reasons for not considering it. +Increase international presence: As of Q3'21, Zoom generates 70% of revenue in the US. The implied growth rate is one of the fastest and well supported as voice, messaging, and video communications packaged into an end-to-end communication solution on the cloud. Zoom has seen the most generous year-on-year development of the relative multitude of platforms. Synergy analyst Jeremy Duke said UCaaS adoption spiked during the pandemic, with businesses shifting their focus from UCaaS-based telephony to video conferencing. Zoom's biggest risk is executing across so many different growth aspects simultaneously: Zoom Phone is a more complex sale, the business is moving from smaller to larger . The main attraction to investing in Zoom is its optionality for growth, which are abundant: +New customers, Zoom has been serving enterprise and SME customers, and it looks like they are also serving individuals (!). Compare Popular Comparisons Cisco WebEx vs G Suite Cisco WebEx vs Microsoft Office 365 Cisco WebEx vs Zoom Cisco WebEx vs TeamViewer Cisco WebEx vs GoToWebinar Cisco WebEx vs Wire Download as image Source: Zoom Americas $2.73B Asia-Pacific (APAC) $564.12M Europe, Middle East & Africa (EMEA) $801.50M category, Zoom has a market share of about 17.3%. If youre interested in the companies that use Zoom, you may want to check out Adobe Connect and Skype as well. But these colossal TAM figures may not capture the massive opportunities available to Zoom. The following slide shows that $1.63B of revenue is already under contract, of which $1.18B could be realized in the next four quarters. Price as of December 9, 2022, 4:00 p.m. Zoom Video Communications EPS for the quarter ending October 31, 2022 was $0.16, a 85.59% decline year-over-year. 1-10 employees and Recommended Deadline: Friday, October 8, 2021 2021 Health Care Leadership Awards Nominate leaders in health. The revenue growth was below Citrix Systems Inc's competitors average revenue growth of 7.65 %, recorded in the same quarter. Historical and current end-of-day data provided by FACTSET. And it's down around 33% from its all-time high, set in 2020. Zoom market share. Revenue Continues to Slow. Zoom became the most well-known video-conferencing app during the COVID-19 after gaining about 635 % in 2020. The total number of units sold by Canon is calculated as 4.24 million with an estimated revenue of $31.972B, a 7.63% increase from the previous year. Read the latest reviews and find the best Meeting Solutions software. Other products, particularly OnZoom and Zoom App Marketplace, put Zoom to new industry verticals such as telehealth, workflow, eCommerce, online education, online fitness, eSport events, online dating, real estate, human resources, etc. Zoom Phone - Zoom is on the mission to consolidate communication channels into one single, unified platform. Premium plans are also offered with more advanced features. While Zoom has the brand name, Zoom's 'one size fits all' solution will be challenged by new companies. Let's look at where Zoom stands among its rivals. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. The Motley Fool owns shares of and recommends Zoom Video Communications. Now, the highest price target is $495, set by an analyst with BTIG. The firm offers meetings, chat, rooms and workspaces, phone systems, video webinars, marketplace, and developer platform products. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 1M-10M dollars in revenue. Zoom competes with 140 competitor tools in video-conferencing category. Zoom possesses the most powerful ones, network effects, and brand name. CTXS Sales vs. its Competitors Q2 2022. Go to join.zoom.us. Against market sentiment, we view this as an opportunity to initiate a position. Zoom's Q2 fiscal 2022 (the three months ended July 31, 2021) revenue was $1.02 billion, obliterating management's guidance provided three months prior for revenue to be as much as $990 million.. If you have an ad-blocker enabled you may be blocked from proceeding. Zoom's long-term investment thesis is alive. Privacy Notice | based on company size (Employees), Distribution of companies that use Zoom Zoom generated $2.6 billion in revenue in 2020, a 317% increase year-over-year. Thus, there is a lot of room outside of the US for Zoom to grow. Online Plan 2 (Skype for Business online meetings): $5.50 user/month. I am not receiving compensation for it (other than from Seeking Alpha). As a result, its market cap increased five-fold to $100B. Hybrid Cloud, Consumption-Based IT: Empowering Transformation in Healthcare Leveraging IT Modernization to Drive Business Transformation, How Advances in HCI Are Empowering the Next-Generation of Edge Computing. In fact, I think it's one of the best-positioned businesses as the workforce undergoes big changes. Zoom's explosion in user growth had left little time to fine-tune monetization. 0 Reviews. Intraday data delayed at least 15 minutes or per exchange requirements. As of writing, Zoom is priced at just below the $100B market cap. While Cs Mount. According to TipRanks, over half of prominent analysts recommend holding the stock, not buying it. Subscriber Agreement & Terms of Use | Zoom has become a verb, very much like 'Skype,' 'Google,' and 'DocuSign.' Zoom grew 22.3% and . Zoom started trading on the stock market. Zoom generated $4 billion revenue in 2021, a 53% increase year-on-year Zoom was one of the fastest growing apps of the pandemic; meeting participants increased by 2900% It had 191,000 enterprise customers in 2021 Zoom's valuation exceeded $100 billion during the pandemic, a 383% increase on its value in January 2020 Zoom overview Zoom revenue Microsoft's and Zoom's subscriber bases rose to about 1 million people each in 2020. With these resources, it's looking for acquisitions that can grow its market further. Open Safari. The stock, which as shed 19.3% amid a nine-session stretch of declin Zacks.com users have recently been watching Zoom Video (ZM) quite a bit. EmailToolTester has the data to show that, before the pandemic, Skype owned a commanding 32.4% of the market in 2020 before losing 25.8% of its market share in a single year. 2 Stocks Down 19% to 51% to Buy Right Now, Here's the 1 Social Security Change in 2023 That's Going to Hurt the Worst, Join Nearly 1 Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, best-positioned businesses as the workforce undergoes big changes, Copyright, Trademark and Patent Information. In order to achieve this resolution, Microsoft recommends a minimum connection of 2Mbps, while Zoom recommends a 3Mbps connection. It has the perfect product available at the ideal time. Given Zoom's broader user base compared to its peers, many businesses simply prefer to use the Zoom app. Copy link. It is also priced at about 30x Forward EV/FY2022 Sales. Some of the companies that use Zoom include: Customize Zoom users by location, employees, revenue, industry, Zoom has a market share of over 50% in both the UK and the US Zoom makes up 53% of all video call platform searches in the UK and 58% in the US. Zoom's market leadership is unquestionable as it grew its market. Zoom Community; Developer Forum; Partner Portal; . To estimate Zoom's market share of addressable knowledge workers with a hybrid/remote working model, we exclude those located in mainland China and use Zoom's historical market share of total video conferencing domain traffic on desktops, not "in-app" activity. But David Maldow, founder of market research firm Let's Do Video, said Cisco has been less innovative than Microsoft and Zoom. Click Join . According to this latest study, the 2021 growth of Modular Zoom Lenses will have significant change from previous year. In the unified communications market, Zoom has a 13.6% market share. Free cash flow was 388M, up from $55M in Q3 last year. What happened. Methodology Zoom has also reported earnings results twice in 2021, shattering the prevailing narrative about this investment going forward. The market is missing the forest for the tree. "While all three platforms have developed in recent years Webex is just not impressive anymore," Maldow said. In the second quarter the company reported earnings of $1.36 per share on revenue of $1.02 billion -- the first time its quarterly revenue topped $1 billion. The outlook is excellent in our view. Even with new products and ongoing revenue growth, Wall Street analysts don't seem to know what to do with Zoom stock right now. Market leader RingCentral stayed at a 20% market share in 2020. Microsoft and Zoom increased their shares of the unified communications as a service market in 2020 as workers turned to the companies' video conferencing services for business meetings during the pandemic. As a result, its market cap increased five-fold to $100B. Businesses Spending Is a Risk. Copyright 2022 MarketWatch, Inc. All rights reserved. The figure is expected to triple in five years to $140B. We believe Zoom's use cases are already multiplying. Its platform helps people to connect through voice, chat, content sharing, and face-to-face video experiences. Growth was 29% year to year in 2018 and 27% in 2019. None has the virality effect in 2020, quite like Zoom. Cisco's and 8x8's shares fell, but both saw double-digit subscriber growth, albeit less than Microsoft and Zoom. According to Synergy Research Group, Microsoft and Zoom increased their market shares by almost 10 percentage points. The cost depends on various factors, such as number of records, number of products and use of advanced Zoom's Total Serviceable Market ('TSM') will grow beyond our comprehension. Please disable your ad-blocker and refresh. Visit a quote page and your recently viewed tickers will be displayed here. Zoom Video Communications 3Q Profit Falls--Earnings Review, Zoom Video Communications Expected to Log 3Q Profit Decline -- Earnings Preview, The PC boom has gone bust, and we are about to see the results ahead of Black Friday, Zoom, Dell, Best Buy, Deere, and Other Stocks to Watch This Week. Also known as Zoom, the company generated revenues of over four billion U.S.. The company was founded by Eric S. Yuan in 2011 and is headquartered in San Jose, CA. Alternatives. That's a 50% free cash flow margin (!). Unsurprisingly, Zoom is now a $100B company. At the time of our founding in 2011, we looked at what businesses need, their use cases, and the ways they work, and we custom-built a communications platform for their current and future needs. Management intends to maintain a high R&D budget of 10% of sales over the long-term. For example, on May 19, the company announced Zoom Events, which will allow event organizers to create ticketed live events directly on its platform, opening up an entirely new use case for the software. The market is projected to grow from USD 17.15 billion in 2021 to USD 40.79 billion in 2028 at a CAGR of 13.2% during the 2021-2028 period. While it is already viral in the education sector, there are massive opportunities in: eCommerce and workflow management - Zoom is now integrated within Shopify (SHOP), Slack (WORK), Teams, Zendesk, Jira (TEAM), LinkedIn. Market capitalization (or market value) is the most commonly used method of measuring the size of a publicly traded company and is calculated by multiplying the current stock price by the number of shares outstanding. Despite the fall from grace on the stock market, Zoom's business is more robust than ever,. Powerful productivity with Office. He graduated from Northeastern University with a degree in journalism. I am not receiving compensation for it (other than from Seeking Alpha). The top three of Cisco WebEx's competitors in the Online Meetings category are G Suite with 82.36%, Microsoft Office 365 with 7.86%, Zoom with 5.02% market share. Zoom is rapidly introducing new products, expanding to new industry verticals and geography. Zoom's value exceeds $100 billion. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. It shows a strong ability to land and expand, add value, and gain customers' trust. The market capitalization, commonly called market cap, is the total market value of a publicly traded company's outstanding shares and is commonly used to measure how much a company is worth. Cookie Notice (). Cisco placed senior vice president Sri Srinivasan in charge of the collaboration unit while folding it into the new security and applications group. The top alternatives for Zoom video-conferencing tool are G Suite with 87.27%, Skype with 1.43%, TeamViewer with 1.14% market share. There were more than 15 million UCaaS subscribers globally in 2020, twice as many as in mid-2018, Synergy reported. While they enjoy more considerable resources and geographical reach, their products lack usability, visual appeals (and tools), and meeting controls. The country currently accounts for a 33.49% share in the global market. The environment could reinforce cloud AWS ecosystem research suggests partners generate more services dollars when they invest in a broader portfolio of offerings; All Rights Reserved, Growth was strong in all regions of the world and fastest among large enterprises. Business spotlight: Zoom; Market recap for the week ended April 16, 2021. theinternationalinvestor.substack.com. But even this impressive guidance proved conservative. 4 Social Security Changes Joe Biden Wants to Make: Is 2023 the Year They Become Reality? Request Sample PDF KEY MARKET INSIGHTS Listen to Audio Version The global team collaboration software market size was USD 15.25 billion in 2020. Why Zoom in the Middle East remains in focus despite office return. In the second quarter of 2021, Zoom's valuation even exceeded $100 billion. I wrote this article myself, and it expresses my own opinions. Zoom Video Communications Inc. stock falls Wednesday, underperforms market Dec. 7, 2022 at 5:49 p.m. He can be found on Twitter at @MaximTamarov. Zoom uses Cookies to enable you to use our site. I have no business relationship with any company whose stock is mentioned in this article. Our data for Zoom usage goes back as far as 6 years. According to this latest study, the 2021 growth of Telephoto Zoom Lens will have significant change from previous year. The rivals above may provide messaging, voice, video, or other team collaboration tools, but they do not provide an end-to-end communication solution like Zoom. ET by MarketWatch Automation Zoom Video Communications Inc. stock falls Tuesday, still. Gross margin was 68.2%, a significant drop from 83% YoY and 72.3% QoQ due to a considerable increase in free users' usage, particularly in K-12 education intuitions. As of December 2022 Zoom has a market cap of $21.09 Billion . If you have Targeting cookies enabled below and depending on your account type or login state, we may allow third-party advertisers . are small (<50 employees), 38% are medium-sized and 12% are large (>1000 employees). (Zoom 2021) This suggests a possible upside of 60.6% from the stock's current price. Zoom launched Zoom Events, an all-in-one event management platform in July 2021 to help Once Covid-related usage diminishes, we expect gross margin to improve towards Zoom's long-term target. Other major and competing products in this category include: Zoom Unified Communications 106,041 Companies using Zoom 106,041 Companies using Zoom Unified Communications Zoom (17.31%) Adobe Connect (13.84%) Skype (13.48%) Tencent QQ (13.25%) 2020 was a banner year for Zoom (NASDAQ:ZM). Competitors do not even compare. (Enlyft, 2021) Invest better with The Motley Fool. Open Edge. Comparing the results to its competitors, Citrix Systems Inc reported Total Revenue increase in the 2 quarter 2022 by 5.84 % year on year. And even though the stock rallied hard in the final weeks of the first half of the year, Zoom is still down about 14% from its 2021 high as of this writing. Founded in 2011 . -38% of revenue came from customers with less than ten employees, up from 36% in Q2 and from <20% in Q4'20. We will not be adding you to an email list or sending you any marketing materials without your permission. Although subscriber growth will likely slow, it will stay at about 20% for the foreseeable future, Synergy said. Religious Institutions industry. However when the company reported fiscal 2021 results (for the year ending in January 2021), it guided for fiscal 2022 revenue of $3.76 billion to $3.78 billion -- 42% to 43% year-over-year growth on top of the 326% growth it had in fiscal 2021. We believe investing in Zoom today carries fewer risks thanks to the proven product-market fit, viral brand name, scalability, and importantly, at the helm, Zoom has Eric Yuan, who is highly motivated and visionary. Its competitive position is stronger than ever, and the untapped market opportunity is vast as communications move to the cloud, and remote working becomes the new normal. Global results for the first quarter of the year - Zoom is unable to provide regional breakdowns - revealed total revenues of $956.2m, up 191% year-on-year. 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Collaboration head Amy Chang took an indefinite leave of absence. Looking at Zoom customers by industry, we find that Religious Institutions (7%) and Education Management (6%) are the largest segments. Again, it has proven to be extremely efficient in scaling as the free cash flow margin reaching 50% in Q3'21 and higher than the likes of Salesforce (CRM) on an annualized basis, $1.65B vs. $1.4B. Analysts are divided on the investing opportunity, but this might be because they're thinking too much in the short term. I wrote this article myself, and it expresses my own opinions. DBNER Zoom has maintained an over 130% dollar-based net expansion rate every quarter (ten) since the IPO. and more. The growing trend also means that they might be subject to higher user churn. Copyright 2008 - 2022, TechTarget -Customers generating over 100K was 1,289, up 136% YoY from 546. "We are more video-first today, compared to earlier, which is partially fueling the growth of Teams' and Zoom's UCaaS business," Duke said. General Zoom and Video Conferencing Statistics 1. -Major customer wins were Peloton and Rakuten. Others: Virtual jury in Florida, eSports, etc. Thus, Zoom's high free cash flow generation allows Zoom to continue fuelling growth. +Higher spent per customer by expanding use cases of Zoom's platform. It provided phone services in 44 countries and was the fastest-growing product in Q3'21 (from 18 countries in Q1'21). September 30, 2021 8 min read. Zoom saw a 383% increase in its value since January 2020. The company later appointed Jeetu Patel as the group's senior vice president and general manager. include: Zoom unifies cloud video conferencing, simple online meetings, and cross platform group chat into one easy-to-use platform. However, as our way of work and play has changed forever, we believe Zoom's product has a permanent place in our lives one way or another. Nevertheless, technology changes fast, and the threat of disruption is real. While the stock will not perform like in 2020, it will still surprise many. According to this latest study, in 2023 the growth of Zoom Beam Expanders Market is projected to reach Multimillion USD by 2028, In comparison to 2021 and is expected to grow at a very high CAGR . The nine-year-old app's (Zoom) market crossed $140 billion in October 2020, surpassing Exxon Mobile, which was 130 years old. Zoom has noticed a huge adoption rate with lockdown and possesses 49% of the worldwide market share. There is an increase of 383% in the valuation of Zoom since the year 2020. But it did experience a fall of more than 15% when the news broke in November 2020 about the vaccine's efficiency. Share price of Zoom Video Communications (ZM.US) reached an all-time high in October 2020 at almost $590. rate_review Write a Review file_download Download PDF. Hence, their products fell short in market enthusiasm and virality when compared to Zoom. According to The Fly, this analyst recommends buying Zoom stock but lowered the price target from $550 in June. The Zoom App Marketplace features apps in various business categories such as PeopleOps, Marketing, Collaboration, CRM, Finance, Sales, Scheduling, Transcriptions, Telehealth and more. Additionally, there will be user churn, more 'Zoom fatigue,' and new companies carving out the edges of Zoom's verticalization. Of all the customers that are using Zoom, When it reported first-quarter results, it raised full-year revenue guidance to a range of $3.975 billion to $3.99 billion, clearly demonstrating Zoom isn't a one-year wonder. With the vaccination. Register. Something went wrong while loading Watchlist. With $2.58B of projected FY21 sales, the stock is priced at about 40x EV/Sales. Of all the customers that are using Zoom, 49% Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. . The global team collaboration software market size was valued at USD 21.69 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 9.5% from 2022 to 2030. By ITP Wed 7 Jul 2021. In the second quarter of the year 2021, Zoom was valued at more than $100 billion. In the first several weeks of the year, the stock was up more than 30% before crashing over 30% from these 2021 highs. Consequently, Q3'21 was another phenomenal quarter. (April 16, 2021). Despite Microsoft Teams being top in 41 countries, it only has a small global market share of 15% overall, but continues to gain popularity with a 5% growth from 2020. Twitter. 2.3.1 Global Low Power Variable Zoom Optics Sales Market Share by Type (2016-2021) 2.3.2 Global Low Power Variable Zoom Optics Revenue and Market Share by Type (2016-2021) 2.3.3 Global Low Power Variable Zoom Optics Sale Price by Type (2016-2021) 2.4 Low Power Variable Zoom Optics Segment by Application 2.4.1 Telescope 2.4.2 Magnifier 2.4.3 . The global video conferencing market size was valued at USD 6.28 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 12.5% from 2022 to 2030. Zoom owns 49% of the global market share, and has seen the most substantial year-on-year growth of all the platforms. Learn More. Zoom's market valuation dropped over 35% since November 2020. Is Zoom as 'valuable' as it was pre-pandemic or at IPO? Zoom Video Communications, Inc. engages in the provision of video-first communications platform. In the Unified Communications category, Zoom has a market share of about 17.3%. Zoom continues its strong trajectory in 2021 and is hosting more than 1 million webinars or more per month. United States and in the Find latest market research reports on Worldwide Projector Zoom Lens Market In-depth Research Report 2021, Forecast to 2026. info@wiseguyreports.com | +162 825 80070 (US) | +44 203 500 2763 (UK) Login. As Amazon was not just an online bookstore, Zoom will not be confined to video conferencing. Nikon is moving in decline in terms of market share. Enter your meeting ID provided by the host/organizer. Distribution of companies that use Zoom I have no business relationship with any company whose stock is mentioned in this article. Real estates (In Q2'21, 50% of newly launched properties in Singapore was over Zoom). However, the market opportunity is vast, and there is room for multiple winners. The stock has nearly halved in value since hitting a peak of $114 billion last year. The market is projected to grow from USD 6.87 billion in 2022 to USD 14.58 billion by 2029, exhibiting a CAGR of 11.3% during the forecast period. This could be to a long-term investor's advantage. The videoconference industry has prospered more than any during the global coronavirus lockdowns, and Zoom in particular, but a number of corporate mistakes and mishaps have contributed to Zoom. March 31, 2021, 02:02 PM EDT "We're hearing customers saying, 'We're going to get to the other side of the pandemic and then make longer-term, strategic decisions about hybrid work.' I think. Someone from the Enlyft team will get back to you within 24 hours with more information. (Enlyft, 2021) Religious institutions are some of the largest users of the application as well (5%). The market size of video conferencing is predicted to cross USD 75 billion in 2027 with around 23% CAGR between 2021 and 2027, says this GMI report. To make the world smarter, happier, and richer. Zoom Video Communications 2022 annual EPS was $4.5, a 100% increase from 2021. Your feedback is appreciated.Track record:Dec 2017-Nov 2021: +171% (28% CAGR) - pre-tech crashDec 2017-Jul 2022: +78% (12% CAGR) - post-tech crashSleep Well investing! IT services providers use a mix of diesel generators, portable power stations, Starlink and creative work scheduling to press on Economic uncertainty complicates the business outlook for professional services firms MSPs. still in the early days, and a repeat performance of 2020 is not on our minds. Making the world smarter, happier, and richer. Zoom Video Communications market cap history and chart from 2019 to 2022. Telehealth - Through Zoom's HIPAA/PIPEDA compliant Epic app, client: South Coast Community Services leverages Zoom to provide mental health support during COVID-19. Border Surveillance accounting for % of the CCTV Telephoto Zoom Lens global market in 2021, is projected to value USD million by 2028, growing at a % CAGR in next six years. Zoom is most often used by companies with Zoom was already a very successful growing company in the years leading up to last year . *Average returns of all recommendations since inception. (Enlyft, 2021) Companies in the computer software industry use the video conferencing solution the most (7%). Revenue was $777M, up 367% YoY from $167M, an acceleration of 17% from $646M in Q2'21. The five countries that had the highest usage attributed to Zoom were Uruguay, South Korea, Israel, Ecuador, and Japan, with all having over 70%. Secure communication lines via strong authentication and encryption. Network with other Zoom users, and share your own product and industry insights. Zoom Stock Has More Room to Drop, Analyst Says. The promising growth prospects of the market can be credited to the evolution of the modern workplace and the rising need to incorporate effective means of team . In the Unified Communications There are 10,700 zoom phone customers that have more than ten employees. Despite Microsoft Teams being top in 41 nations, it has a small worldwide market share of 15% only. During 2020 and 2021, Zoom's adjusted EBITDA margins were 37% and 38% . Zoom has market share of 5.51% in video-conferencing market. The data Zoom collects provides optionality long into the future. Date: Oct 12, 2022 Zoom Revenue and Expense Statistics Zoom Revenue by Region Zoom stats breaking down the company's annual revenue by region. These are products and features that will allow Zoom to grow beyond corporate video conferencing. data fields per company at an average. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Since then the share price has stumbled downwards, landing on 80 U.S. dollars on November 21, 2022. Share Summary TOC Segmentation Methodology Infographics Request Sample PDF KEY MARKET INSIGHTS Listen to Audio Version The global video conferencing market size was valued at USD 6.28 billion in 2021. The Motley Fool has a disclosure policy. During the quarter, Zoom recorded 3.5 trillion meeting minutes, up 75% QoQ. #1 Software in Web Conferencing Zoom market share is 73.83% with more than 181130 companies using this software Datanyze helps you reach more than 3,636,063 contacts that are using Zoom , including Apple Microsoft Deloitte Find Contacts Websites Added 1,788 Current Websites 181,130 Websites Dropped 716 Market Share 73.83% ABOUT ZOOM Go to join.zoom.us. (Zoom 2021) Zoom had over 470,000 business customers as of December 2020. Have Watchlists? Could they fall below $3 a gallon in the months ahead? billions of public documents, we are able to collect deep insights on every company, with over 100 The most basic paid Zoom United plan costs $250/200/AU$350 per user when billed annually or $25/20/AU$35 per month. Zoom is reliable, easy to use, and easily deployable. in . of over 15,000 technology products, including Unified Communications. Gartner 2021 Magic Quadrant Leader Learn More. 2. 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