Zoom sees more growth after ‘unprecedented’ 2020
Zoom surged during pandemic says Zoom boss Eric Yuan. It is expected that the sales will be around $3.7bn (£2.66bn) this year, which is 40% more than last year.
The share price increased by 6% in NYSE
The management at Zoom said they did not expect to see a rise in demand this year, as last year was very fruitful for the company.
There has been a record business of $882.5m in the last 3 months of 2020 which is 370% times more than in 2019.
The company’s boss Eric Yuan said:
As the world emerges from the pandemic, our work has only begun.
“The future is here with the rise of remote and work from anywhere trends,” Mr. Yuan said in prepared remarks for investors. “We recognize this new reality and are helping to empower our own employees and those of our customers to work and thrive in a distributed manner.”
Susannah Streeter, the analyst at Hargreaves Lansdown, said:
Zoom’s fate would depend on how it manages to compete against firms such as Microsoft and Google, which have introduced similar features.
Although it stole an early march on other players in the first few months of the crisis, it does now have much stiffer competition from the likes of Microsoft and Google who have significantly upped their game.
she wrote in a research note.
It may be that we have become so used to pandemic habits that we will stick with our virtual social lives, particularly for long-distance friendships and work relationships. But just how large a slice of the live video pie Zoom manages to hang on to will depend on how it matches up to its powerful rivals.