The COVID-19 Pandemic saw our way of life change drastically inside of weeks. The concept of engaging with your co-workers, travelling to the movie theatre or mall for entertainment, and seeing family members became impossible in most nations. This prompted notable growth for video conferencing services, with conventional platforms like Skype & Messenger losing market share to Zoom.
This videoconferencing platform was founded in 2011 by Eric Yuan in San Jose, California. It wouldn’t become a rivalling brand to Skype & Messenger until the 2020 COVID-19 Pandemic. Revenues jumped drastically after their platform’s convenient features became viral. Subsequently, their 1st Quarter in 2020 was more significant than what their profit margins had ever acquired beforehand. Similar results were seen during the 2nd Quarter of 2020, with Zoom announcing their revenues jumped by 355% between April 31st to July 31st. This percentage equates to a company revenue of $663.5 Million, which is higher volumes than what financial analysts had anticipated.
After operational costs were paid-out during the 2nd Quarter in 2020, Zoom Video Communications earned a profit of $186 Million. Details in their financial reports reveal that customer acquisition grew by 458% when compared to their 2019 growth. This is one of the highest percentage of growth that Wall Street has seen in decades and have enabled for ZVCs shares to hit $325.10 per share. Zoom Video Communications updated its annual revenue forecast after the financial growth in Q2, estimating that it’ll reach $2.39 Billion.
Zoom Video Communications was an unknown platform until a unique feature was added weeks before COVID-19 became an international pandemic. Corporations & businesses could pay their employed personnel through the platform while also contacting their workforce without connection delays. These two core attributes outrivaled Skype & Messenger, prompting both Microsoft and Facebook to launch identical services similar to Zoom’s updated features. It was too late; Skype & Messenger couldn’t compete against Zoom Video Communications.
It should be mentioned that all videoconferencing platforms with global operations saw a surge in usage. The COVID-19 Pandemic forced educational institutions to high-scale companies into using videoconferencing platforms. It’s known that Zoom sustains 1st in the 2020 market, with Facebook’s Messenger coming 2nd, and Microsoft’s Skype coming 3rd.