Zoom is now more 'valuable' than eBay and Baidu

NEW DELHI: Let’s be clear about one thing that before 2020 not many of us had heard of a video conferencing tool called Zoom. Yes, it was popular but no so much that it became a household name. And yes, the CEO was a billionaire last year as well but the fortunes of the company have changed dramatically. We are halfway done with the year 2020 and none of us expected what the year has turned out to be. Zoom has zoomed its way into people’s lives on a daily basis now and in this process, has multiplied its market cap.

According to a report by The Next Web, Zoom started 2020 with a market cap of $18.99 billion, which has now more than tripled to cross $61 billion. This means that the market value of the company has now become bigger than companies like eBay, Baidu, Electronic Arts and Activision Blizzard, claims the report.

The company, just last week, announced its financial results for the first quarter for the fiscal year 2021 and the figures show that the growth of the company has been exponential. The total revenue of the company for the quarter was $328.2 million, up from $122 million a year ago making the growth of 169%.

Company’s founder and chief executive officer, Eric Yuan, in the statement announcing the results said that the “accelerated adoption” of the platform in people’s lives in these unprecedented times has been driven by Covid-19. ”We were humbled by the accelerated adoption of the Zoom platform around the globe in Q1. The COVID-19 crisis has driven higher demand for distributed, face-to-face interactions and collaboration using Zoom. Use cases have grown rapidly as people integrated Zoom into their work, learning, and personal lives,” he said.

Despite having a wide share of security and privacy issues, the platform still remains among the popular options among not only those who are working remotely, but also for personal use.

In its quarterly realists report, Zoom said it had 769 customers who were paying over $100,000 in the trailing 12 months revenue, which is roughly a 90% increase year over year.

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