Zoom Video Communications, Inc. Research Report

    About Company

    Zoom Video Communications, Inc., popularly known as Zoom and conventionalized as zoom, is a US-based communications tech firm with its head office in San Jose, California.

    Zoom Video Communications, Inc. offers online chat and videotelephony facilities via a peer-to-peer cloud-oriented software platform utilized for, 

    • Chat (messaging)
    • Meetings (video communications)
    • Rooms (conference rooms for video conferences)
    • Phone (voice calls)
    • Contact Center (contact centers), and Events (virtual events) 

    The company also provides an open platform permitting 3rd-party developers to make tailor-made apps on its integrated communications platform, also named as Developer Platform.

    When was Zoom Video set up?

    The company came into existence on 21st April 2011, and the software was introduced in 2013. Eric Yuan, an erstwhile executive and engineer serving Cisco, set it up.

    Phenomenal growth within a short period

    The revenue surge of the company, and the apparent simplicity of application and dependability of the software, led to a valuation of US $1 billion in 2017, turning it into a “unicorn” firm.

    Initially, Zoom Video Communications commenced making a profit in 2019. It concluded an IPO (initial public offering) the same year. On 30th April 2020, Zoom became a part of the NASDAQ-100 stock index.

    Starting in early 2020, the company’s software application witnessed an incredible worldwide jump once quarantine restrictions were followed as a result of the COVID-19 pandemic.

    Disputes were a part of its successful journey 

    Zoom’s software products experienced media and community criticism associated with safety and confidentiality concerns. The company witnessed constant criticism due to hapless design selections and security failures from time to time. This has led to enhanced analysis of its software. Zoom has also been censured for its business data sharing and confidentiality schemes. Security analysts and journalists have often disapproved of Zoom for want of clarity and lackluster encryption patterns. 

    At first, Zoom asserted that it utilizes end-to-end encryption for its promotion stuff. However, it subsequently explained it implied from an endpoint (Zoom) to endpoint (Zoom) (signifying successfully between Zoom clients and Zoom servers). The Intercept news agency depicted this as ambiguous and deceitful. The company has also been under the scanner of a class-action lawsuit and investigation initiated by Letitia James, the State Attorney General of New York, in 2020. The Federal Trade Commission (FTC) was also suspicious about Zoom’s privacy measures and reported that the extent of encryption maintained for the customers was less than satisfactory. In 2020 December, it was also under inquiry conducted by the United States Attorney for the Northern District of California and the U.S. Securities and Exchange Commission (SEC) regarding its communications with other countries and political organizations. It also got a subpoena regarding the same issue from the United States Attorney for the Eastern District of New York in 2020 June.

    What type of company is Zoom?

    Zoom is a publicly-traded company.

    To which industry does Zoom belong?

    Zoom belongs to the telecommunications industry.

    Who is the founder of Zoom?

    The founder of Zoom is Eric Yuan, a Chinese-American engineer and business magnate who is also the company’s CEO. He is the 22% stakeholder of the firm.

    Where is the head office of the firm situated?

    The firm has its head office in San Jose, California.

    Which area does Zoom serve?

    The firm serves a global client base.

    What are the services provided by Zoom?

    The services offered by Zoom Video Communications are the following: 

    • Online chatting,
    • Videotelephony, &
    • Business telephone setups

    How many people work for Zoom? 

    As of 2021, 6,269 people are employed with the company.

    Which industry does Zoom Video Communications serve?

    Zoom serves the following industries:

    • Finance
    • Education 
    • Healthcare
    • Government 

    Which are the subsidiaries of Zoom Video Communications, Inc.?

    Following are the subsidiaries of Zoom:

    • ZVC Australia
    • ZVC Uk Ltd
    • ZVC Netherlands 
    • Karlsruhe Information Technology Solutions
    • Zoom Voice Communications, Inc.
    • Keybase, Inc. 

    Which are some of the esteemed clients of Zoom?

    Some of the top clients of the company are listed below:

    • Shyft
    • Teach for India
    • F1
    • Capital One
    • WWF
    • European Tour
    • NBA
    • Mary Lou Fulton Teacher College at Arizona State University
    • European Patent Office
    • Opal Healthcare
    • Sundance Institute
    • Ciena
    • Equinix
    • Texas A&M University
    • Phoenix Children’s Hospital
    • Nasdaq
    • Sekisui Chemical
    • BlueYonder
    • Forbes
    • Box
    • Deezer
    • Happy State Bank
    • Iress
    • EG Group
    • SpinMaster
    • Dropbox
    • Cooper Standard
    • Brotherhood Mutual
    • Goulston & Storrs
    • Provident Healthcare Partners
    • La Salle-Ramon Llull University
    • Dixon Hughes Goodman
    • Conexiom
    • CNIB Foundation
    • McDermott Will & Emery
    • New Zealand Trade & Enterprise

    Zoom Video Communications Management

    Eric Yuan (Chairman and Chief Executive Officer)

    In 2011, Yuan set up the telecommunications company to render satisfaction and get people in concert in a compatible video setting. The interactions platform of Zoom keeps on switching the manner worldwide establishments link, interact, and join forces. As the CEO of the firm, Yuan guided the company to one of the best-achieving technology IPOs (initial public offerings) of 2019.

    In 2017, Business Insider nominated Yuan as one of the Most Powerful People in Enterprise Technology. Glassdoor distinguished Eric as the best Chief Executive Officer for big American corporations in 2018. In 2019, Bloomberg 50 honored Eric as a stalwart and game-changer in worldwide trade. Time Magazine nominated Yuan as its Businessperson of The Year in 2020 and also one of the Hundred Most Influential People of 2020. In 2021, Eric won the Best CEO for Diversity recognition from Comparably.

    Before setting up Zoom Video Communications, Yuan served as the corporate VP of engineering with Cisco Systems. There he had the responsibility for the collaborative software development of Cisco. Yuan was one of the originating engineers and VP of the engineering division of Webex as well.

    Yuan’s name features as an originator on 20 awaiting and 11 published copyrights in concurrent partnership.

    Kelly Steckelberg (Chief Financial Officer)

    Kelly Steckelberg is an icon of across-the-board guidance and financial skill in Zoom. Of late, Kelly served as the Chief Executive Officer of Zoosk, where she earlier occupied the berths of Chief Operating Officer and Chief Financial Officer. Before joining Zoosk, Steckelberg served as the Senior Director of Cisco’s Consumer Segment Finance. Besides, Steckelberg has occupied different finance positions at Epiphany, Cisco Webex, KPMG, and PeopleSoft. Kelly has an MA from The University of Texas at Austin in accounting. She serves as an Episcopal Community Services of San Francisco board member and is a passionate voyager. She had been to more than 60 nations.

    Peter Gassner (Director)

    Peter has been a part of the BoD of Zoom Video Communications since 2015 October. Since 2007 January, Peter has worked as the CEO and member of the BoD of Veeva Systems Inc., which is a cloud computing firm. Before that, from 2003 July to 2005 June, Peter functioned as the Senior VP of Technology with salesforce.com, Inc., a worldwide giant in Customer Relationship Management.

    From 1995 January to 2003 June, Peter acted as General Manager and Chief Architect of PeopleTools with PeopleSoft, Inc., an organization offering human resources management systems owned by Oracle.

    Earlier, Peter was a part of the BoD of Guidewire Software, Inc., a software releaser. Peter has a B.S. degree from Oregon State University in Computer Science.

    Janine Pelosi (Chief Marketing Officer)

    Mrs. Pelosi serves as the Chief Marketing Officer of Zoom. She is entrusted with the responsibility for the interactions, product, go-to-market (GTM), lead generation, brand marketing, and consumer marketing of the organization and also the corporate social responsibility enterprises and online trade of the company with the name of Zoom Cares Foundation.

    In 2015 March, Pelosi became a part of the tech company in the position of Marketing Head and ramped up its marketing system from nil. Janine steers the bold branding tactic of the firm, over and above its dominant demand gaining and channel engines that collectively stimulated the immense development of the company over the last 5 years. Pelosi features one and half decades of strategic marketing familiarity to the organization, with an exhaustive understanding of SaaS commercial business prototypes. Before becoming associated with Zoom Video Communications, Mrs. Pelosi spearheaded the global demand-building activities for the partnership business division at Cisco. Janine developed productive squads and transformative plans at both Cisco and Webex (before acquirement), gathering a comprehensive experience in both direct sales and e-commerce GTM prototypes.

    Business Insider nominated Janine in 2020 as one of the most creative Chief Marketing Officers in the world.

    Pelosi did her graduation with a BS in Marketing from San Jose State University. 

    ZOOM stock performance 

    The common stocks of Zoom Video Communications are traded on the NASDAQ stock exchange with the ticker symbol ZM. It is a Class A stock and a constituent of the NASDAQ 100 index.

    On April 8, 2022, Zoom Video Communications (NASDAQ: ZM) finished trading at US $110.90 at 4:00 pm Eastern Daylight Time (EDT). There remains a delay of at least 15 minutes and the stock data is furnished by Refinitiv.

    Stock Chart

    Zoom Stocks

    Zoom Video Communications Financial Performance

    Financial summary of Zoom Video Communications (amounts are in million US $ unless otherwise stated and for per share info)

    Zoom Video Communications Financial Performance

    • In 2021, the revenue of the company amounted to US$ 2.7 billion (↑)
    • The operating income was US$ 660 million (↑)
    • The net income was US$ 672 million (↑)
    • Total equity amounted to US$ 3.861 billion (↑)
    • Total assets were valued at US$ 5.3 billion (↑)

    Financial highlights (FY22)

    Overall, Zoom featured a robust financial performance for FY22.

    • Revenue growth was 55% (Yr/Yr)
    • Non-GAAP Operating Margin was 40.4% 
    • Adjusted Free Cash Flow Margin was 38.0% 
    • In comparison to FY21 Q4, the company showed growth in total revenue of 21% (from $882 million to $1,071 million) in FY22 Q4 

    Disclaimer: This case study particularly focuses on growing knowledge. The author has not given investment consciousness so much priority. Therefore, you should bear in mind that making any investment is subject to market risks. One should do it after a comprehensive discussion with his investment consultant. Any wrong decision would hit your finances badly and you need to exhaustively delve into the options available with the aid of an investment guide. Just going through one or two case studies is not going to suffice for you.


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