Les Billets de Monocle

Zoom On Zoom

24 December 2020

Zoom is now worth $130 billion, the same as Facebook was at the end of 2013.

Back then, Facebook was earning $1 billion per quarter and held $11 billion in cash. Today, Zoom earns $200 million per quarter (5 times less) and holds $2 billion in cash (5 times less).

And the outlook? Not so obvious:

1) The exit of the pandemic will not help sales;

2) Competitors (Microsoft, Cisco) are going to put a lot of effort into regaining market share. For information: in the last quarter, Zoom spent $40 million on R&D, while Microsoft spent $5 billion and Cisco $1.6 billion.

3) Additional difficulty: last Friday, the US Department of Justice filed a complaint against Zoom for voluntarily interrupting communications commemorating the Tiananmen massacre.

That seems like a lot of money for Zoom to be valued at $130 billion today.

Finally, for those who missed my speech at Quantalys Inside: don't panic, we have the videos! Here they are :

Happy holidays to you,
Charles

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