2 ms·

Sales of 622 M is pretty low for successful enterprise SaaS startups of Zoom's size. For reference WebEx was 380M in 2006! and likely somewhat larger than 622M

Sales of 622 M is pretty low for successful enterprise SaaS startups of Zoom's size. For reference WebEx was 380M in 2006! and likely somewhat larger than 622M today. I would actually say they are probably undervalued if you are looking at Zoom's long term prospects. Video Conferencing is here to stay as primary means of work communication, and as with any communication businesses like messaging and now VC market will consolidate towards few players - network effect and ease of use, and the friction in downloading and installing more apps all play a factor. Zoom have not gained the paying customer traction they should be having in the Fortune 2000 kind of companies. Sales cycles in these companies are no so short to reflect within a quarter, and many of them have to readjust from existing Market expects their sales to multiply few times in next few quarters, so do I and perhaps also you, the difference is how we each price growth and risk. I think the risk is low, and growth easily can be more than market anticipates as of today.

Barrin92 6y ago
I don't see network effects at work here. Network effects function by increasing the value of the product itself simply because there are more users on the network, that is to say, the users contribute value to the network itself, for example, because they generate the content others consume. If you have more people on Zoom you just have... more people. Conferencing and video software don't really have a lot of moat. Skype, Teamspeak, Mumble, Google Hangouts, Discord etc.. there's always been plenty of competition and churn.
- manquer 6y ago
  How many apps for video conferencing you have installed ? I have at least 10 (zoom, Webex , teams , Skype for business , Skype , chime , ring central , blue jeans , slack, Hangouts, ..) I am not including non work related ones like FaceTime or WhatsApp etc either, Each one requires additional effort to setup and use. It is like Office , more people using the same app , makes it more attractive to use . for example if half my customers already use zoom , I would seriously consider it even if it was costlier

Barrin92 6y ago

I don't see network effects at work here. Network effects function by increasing the value of the product itself simply because there are more users on the network, that is to say, the users contribute value to the network itself, for example, because they generate the content others consume. If you have more people on Zoom you just have... more people. Conferencing and video software don't really have a lot of moat. Skype, Teamspeak, Mumble, Google Hangouts, Discord etc.. there's always been plenty of competition and churn.

manquer 6y ago
How many apps for video conferencing you have installed ? I have at least 10 (zoom, Webex , teams , Skype for business , Skype , chime , ring central , blue jeans , slack, Hangouts, ..) I am not including non work related ones like FaceTime or WhatsApp etc either, Each one requires additional effort to setup and use. It is like Office , more people using the same app , makes it more attractive to use . for example if half my customers already use zoom , I would seriously consider it even if it was costlier