International Business Editor
In the wake of the Covid-19 pandemic, video-conferencing platforms like Zoom experienced record growth. The numbers showed that there was a 360% revenue growth as hundreds of thousands of users logged onto Zoom for school, work, or social events between friends and family. Such was its popularity that Zoom became a household name, as it bridged the gap between people across the world. Such growth was observed even as rival platforms such as Cisco, Microsoft, and Salesforce were popular among users. However, as the pandemic receded and people returned to in-person interactions, the company’s stock declined by 16%, as reported earlier this month. In addition, the stock value of $197.94 represents only half that of the value during the midst of the pandemic, which has sparked the company’s concern.
To combat the decline in the stock, Third Bridge investment consultants had suggested that Zoom be transformed into a contact center to facilitate inquiries made by various parties. Particularly, Zoom had plans to engage in a deal with Five9 and buy the call center software provider, which would cost $14.7 billion. However, this plan fell through back in September and the company is once again at a loss. That is not to say that there has not been any growth at all in recent months. On the contrary, the stock had soared for a time and rose 9%, before periodically declining again. Although the stock value represents a general decline since the pandemic, there are still substantial profits being made as well. For example, the net income this year was $340.3 million in comparison to $198.4 million just a year prior. Furthermore, the total revenue is projected to be $1.05 billion in comparison to the previously projected $1.02 billion.
Although there may be concerns regarding the plummet in stock value of Zoom, this does not mean Zoom will be leaving from everyday life. The adaptation to online life has allowed the realization of easily accessible communication between coworkers and students. If a situation should arise, such that an in-person meeting cannot take place, companies, schools, and organizations can always fall back on Zoom. Even as the pandemic slowly ends, Zoom, and other video-conferencing platforms alike, are here to stay.
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