With gazillions of people being compelled to stick around the house in order to help break the chain of COVID pandemic, numerous have found innovative ideas to stay social through trivia nights, birthday celebrations, or a few happy hours by themselves. Parallelly, Zoom, one of the dozens of video conferencing services heightened to the top, all credits to the extreme distancing measures and a sagacious resonance on the inside of this social distancing culture. This application still remains one of the top free apps for android as well as ios.
After this recent success, the investors fear if the company would able to thrive following the launch of the vaccine which will enable people to associate again. A fresh Zoom Q3 result showed the COVID related sudden growth gradually tapering down.
For the time being, Zoom is surviving, as millions of people who never discovered the app previously depend on its video conferencing feature to connect with their teachers, co-workers, families, friends, and more. Zoom is also easy to set-up, use, and manage. It is a modern communication for dispersed teams, also a single platform for meetings, phone, webinars & chat. It connects via desktop clients, browsers, conference rooms & mobile devices. All of this reliance elevated zoom’s fortune.
Zoom’s revenue boosted more than 4 times from last year to roughly Rs. 5,700 crores, yielding Rs. 1,500 crores of a profit, up from Rs. 16 crores just a year prior. Although both these figures effortlessly topped the estimates amidst, analysts surveyed by FactSet Research, the stock showed a 5% shed in Monday’s extended trading.
The number of companies anteing up for Zoom’s subscription version is not soaring promptly as the early stages of the pandemic, which could be one of the possible reasons for the downgrade. The drop-off is affecting many investors to think that Zoom won’t be able to sustain the popularity it had at the initial stages of lockdown which seems to be the truth in some ways. The company’s stock price has collapsed more than 20% from its all-time high of Rs. 43,300 peaked last month.
“The trends of remote work had started long before the pandemic and they have just been accelerated by this,” “Given the adoption and the way we have seen all segments, from small business owners to individuals all the way up to large organizations, embrace Zoom, we really expect that those remote working trends will continue even after there is a vaccine,” said Kelly Steckelberg, Zoom’s chief financial officer, on Monday in an interview with The Associated Press.
Still looking at the high hopes, analysts polled by FactSet predict that the company’s revenue will be reaching roughly Rs. 22,800 crores next year, that would be roughly a 20% increase than this year. The vaccine might also widen the scope for Zoom as it plans to offer a free service to about 1,25,000 schools that will instruct students online instead of in classrooms.
White predicted “Zoom’s spike in consumer demand has given it a competitive edge that cannot transition well into the reopened economy,”.