We all know Zoom. With the software, the word “you are on mute” has become our top daily sentence in the past 2 years. But think about this question seriously: can Zoom keep growing?
Hmmm… why are you asking this?
Zoom posted its quarterly results, and it was disappointing. Revenue only grew by 52% – Though this is already high considering last year’s booming revenue, investors simply want more. (FYI. It gained 191% last quarter)
- Will there be Zoom meetings in the future? Investors are concerned that businesses will spend less on Zoom as face-to-face meetings and gatherings start again.
- Plus, competition is intense. Microsoft Teams and Google Meet are both gaining market shares quickly.
No, we’ll continue to grow fast… said Zoom. It has also revised up its earnings projections this year, as firms and countries have delayed their reopening plans due to surging Delta variant cases.
- Zoom has been looking for ways to diversify, including introducing premium products like Zoom Phone, and jumping into the call center markets by acquiring cloud software company Five9 earlier.
Shares of Zoom still fell over 12% 📉 in after-hours trading following its earnings report.
🐿️ Whom am I Zooming to? I’m attending Dr. Po Tato’s accounting class! If you don’t know this funny story, watch here.