Zoom expects higher revenues by monetizing hybrid model
Zoom emerged as one of the largest tech players due toshift to remote work amid COVID-19 pandemic
Zoom Video Communications Inc Tuesday released its financial results for the first fiscal quarter of 2021, reporting massive sales growth of 191% ($956.2 million). The company noted its Zoom Phone product, including cloud-based phone services with video calls and other capabilities, witnesseda rise in seats from 1 million in January to 1.5 million at the end of April.
Since the onset of COVID-19 in 2020, Zoom has become a popular tool for businesses, education institutions, and other segments of society to connect virtually. As global institutions continue to switch to remote working and distance education, Zoom is expecting a further boost in user demand for its video conferencing tools. In the current quarter, the company is seeking to monetize the shift to hybrid work models across sectors amid the ongoing pandemic crisis.
Taking note of the prevailing circumstances, Zoom has also introduced various new features to support the hybrid model for businesses that are allowing some employees to return to offices while others continue to work remotely.
“We have also opened our technology portfolio to developers through our powerful video SDK and to businesses to expand their reach through Zoom Events,” Zoom founder and CEO, Eric S. Yuan, said in the statement.
However, with countries accelerating their vaccination efforts, economic activities are gradually returning to normal. According to experts, this can hamper the sustainability of the sales growth for Zoom amidst tough competition from Microsoft, Google, and Cisco.
Zoom emerged as one of the biggest players last year after dynamic shift to remote work and distance learning, expanding its first-quarter profit in 2021 to over $227 million from $27 million around the same time last year. In order to increase customers’ capacity, the company also provided free accounts to some businesses and schools to support the continuity of their operational activities.
Over the past one year, leading tech firms have enjoyed higher customer demands which facilitated technology upgrades to support changing requirements. As economic activities return to normalcy, tech firms are providing assistance for embracing hybrid models. Analysts have noted that hybrid working model is here to stay and called on firms to develop technologies to drive the changes.