Digital conferencing company Zoom Video app went official in May and instantly became the worthiest tech company among those that went public in the first division of the year. In just a week, the stock price increased rapidly from 5% to 70% as they earned a profit of almost $18 billion. The market value of the company stands at $17 billion as of the date. In an Interview, Kelly Steckelberg credited the company’s success to its stable funding, video design and direct corporate experience. The company never occurred under the radar of Public Offerings, and that is the only reason that it took people by surprise with their growth and earnings. People never estimated the value of the company that progressed after Steckelberg joined. Steckelberg joined the company two years ago after acting as a CEO of an online dating app. The company’s performance and earnings per share were ahead of the two biggest companies in the sector of the public offering. Lyft’s share price fell and descended to the market value of $16 billion, whereas Pinterest dropped to &13 billion. In the year 2019, when Zoom was trying to make a mark in the market, they published $200 million of revenue in the fiscal year but were growing at a rapid rate. They were positive in the cash flow and funding source. Steckelberg published, in a report, that the ability of the company to grow at this level with being profitable and having a positive cash flow, made them distinctive from any other startup in the market.
Zoom was launched in 2011, by Eric Yuan, as a conference platform that has a competitive advantage over its video-first business model. Additionally, one of the successful names in the market was Cisco Webex, which began out as a screen-sharing app that developed into a video streaming platform. A company needs various software to stream a video than to share a screen. The USP of Zoom is their interface and hardware developed on modern video design. As Steckelberg used to travel often around the country to attend to the investors, Yuan streamed himself remotely through this program. She believes that this reveals the reliability of the platform to the consumers and investors. The company also consolidated its employees, who produced demos by video. Their employees admired it because they could have a glimpse into the IPO roadshow process.
The company also held its first quarterly profit meeting through this platform, which made it more interactive than a business call. The idea behind this meeting is to show the reliability of the program to the employees, analyst and executives. As they could interact without the video and can answer the Q&A. The call occurred as per the company’s regulations and rules. As we had an analyst and a moderator to record the minutes and manage the questions. Zoom works on a subscription basis. It charges to the host monthly. It provides an option of the conference room and accredits it for per room basis. Recently they launched a cloud-based phone program that charges per person or monthly. The users can plan a meeting of maximum 40 minutes with 100 participants, to avail the free service.
Their goal for the year is to enhance the market share and compete with the best in the market globally.