Zoom, whose popularity suddenly increased due to the Coronavirus Pandemic, had to deal with a lot of trouble in this process.. The company, which has been the target of criticism due to security vulnerabilities, received a great reaction from users last week, when it announced that the new security feature would be paid.. Zoom’s revenue growth and new market value became a matter of curiosity after these events.
However, these events did not affect Zoom in a bad way, but in a much better way.. According to the first quarter earnings report announced today, Zoom had 169% revenue growth compared to previous years.. After this statement of the company, there was a 4% decrease in revenue growth due to after-hours transactions.. While this number was $122 million last year, this $200 million increase had an unexpected effect even on Zoom.
Although the company did not disclose how many people have been using its software recently, the Zoom representative said, “We have an unprecedented number of free users.”. Stating that about 100,000 of these unpaid participants are primary, secondary and high school students and teachers, the representative also said that approximately 265,400 companies with more than 10 workers are using Zoom.
Pandemic Plays a Big Role in the Increase
The online calling application Zoom, which was launched nearly ten years ago, started to rise at the beginning of this year.. People who cannot leave the house due to the pandemic have chosen applications such as Zoom to meet with each other.. Companies preferred Zoom due to its usage, interface and function at the beginning of the pandemic process, but started to use alternatives due to security problems.
Zoom CEO Eric Yuan said in a statement, “Working from home and social distance steps have affected Zoom. and significantly increased traffic,” he said..
The Zoom app was temporarily banned in New York City and Singapore due to ZoomBoom. However, it seems that despite these bans and loss of users, Zoom’s revenue growth has not been affected much.
How Will Normalization Affect the Process
Although Zoom is in quarantine days Although it has become popular, most countries are entering a period of normalization.. With the end of curfews, companies to stop working from home and schools to open, people will not need video conferencing as they do today..
These events will cause Zoom and other video conferencing applications to lose a lot of users at once..