Best thing since radio with pictures
For many years, it seemed video calls would remain in the realm of TV and film for the general public, and a strictly niche business tool. Though the technology has been around for almost a century — the first public video telephone service, Germany’s Gegensehn Fernsprechanlagen, was developed in early 1936 — uptake by the general population has been fringe, at best.
Cue the rapid spread of the coronavirus and the best strategy to break its transmission — social distancing. The most accessible and personable means of maintaining lines of communication suddenly became an everyday experience.
From 10 million daily participants five months ago, Zoom now has more than 300 million daily participants attending a meeting held on its service. Those numbers include people who join multiple Zoom meetings during the same day.
As a result, Zoom Video Communications has emerged as the latest internet darling, as millions dial into its conferencing service to see colleagues, friends and family while at home during the pandemic.
Tuesday’s release of the onceobscure company’s financial results for the February-April period provided a window into its astronomical growth.
Revenue for its fiscal firstquarter more than doubled from the same time last year to $328 million, resulting in a profit of $27 million — up from just $198,000 a year ago.
The numbers exceeded analysts’ already heightened expectations, providing another lift to a rocketing stock that has more than tripled in price so far this year.
Though estimated by Datanyze to have 36.67 per cent of the market share, Zoom has competitors, particularly in GoToWebinar (22.66 per cent) and Cisco Webex (12.27 per cent).
In 2026, the videoconferencing market is expected to be valued at almost $10 billion, according to Fortune Business Insights.
After a big run-up leading up to Tuesday’s financial announcement, Zoom’s stock initially rose even higher. But it abruptly reversed and fell more than 3 per cent after executives acknowledged during a video (naturally) discussion that some of its new users might depart during the second half of the year if health worries dissipate.
There are distinct disadvantages to video calls, especially audio latency where delays in spoken words lead to stilted conversations. Only robust internet connections can deliver smooth calls without drop-out or screen freeze. But with the emerging Organic Light-Emitting Diodes (OLED) technology allowing screens to be flexible and even rollable, it could be more essential than ever to “watch this space”. It may be the boss calling.