Zoom, a popular teleconferencing platform, boosts its sales again. This time, Zoom Video Communications Inc is expected to quadruple its revenue in the fourth quarter.
As the BBC reported, the California-based company believes it could hit the $2.5 billion milestones, twice more than what the company previously forecasted in March 2020. The newest numbers report over 433,700 paid subscribers, ranging from 10 to 370,200 employees.
"We expect to strengthen our market position as we finish the fiscal year with an increased total revenue outlook of approximately $2.575 billion to $2.580 billion for fiscal year 2021, or approximately 314 percent increase year-over-year," Zoom founder and CEO Eric S. Yuan, says in a statement.
Yuan highlights several accomplishments from the third quarter of 2020. The billionaire business mogul states that the company has amassed over $777,2 million in revenue. In the full fiscal year 2021, Zoom expects to see $2,575 to $2,580 billion.
Growing Rivalries
As the coronavirus pandemic batters every corner of the world, millions of people have tried other solutions in connecting with their peers, colleagues, and workmates online. One of the best options out there is Zoom, a simplified app designed for online gatherings, even though the free version only lets you call for 45 minutes.
However, other competitors are more than ready to snatch Zoom's position as the number-one go-to app for teleconferencing. Microsoft Teams, Slack, Google Meets, and even LinkedIn are a few to name.
Last October, Microsoft Teams sees a massive spike in statistics, racking up over 115 million daily users from the previous 75 million reported back in April.
Skype, which was already famous before the pandemic, fell short and had to step down from the competition. Instead of fixing Skype by rolling out new features, Microsoft opted to focus on Teams instead, leaving the legendary app's future in limbo.
The Party Is Over
However, as the coronavirus concerns reduce and vaccine developments start seeing the light, it's interesting to see how Zoom copes with it. The number of usual customer losses could steadily increase over time as people begin to report back to the office.
Like it or not, COVID-19 has changed the way we view working and studying because remote jobs and online university courses are more popular than ever. Even big tech companies like Microsoft and Facebook have let most of their employees work from home for years to come.
"We believe Zoom has cemented itself as the de-facto standard for video conferencing and that office reopenings could provide more momentum to Zoom, due to competitive displacements," D.A. Davidson & Co. analyst Rishi Jaluria stated.
Could the COVID-19 vaccine be the end of Zoom? Analysts believe that Zoom's massive growth could continue despite the end of coronavirus, but who knows? There is a much bigger test up ahead for Zoom.
