23 Mar 2021
Posted in Business Fundamentals
Double-digit growth for Zoom’s Q1 2021 sentiments, as work-from-home trend continues, says GlobalData
Zoom’s sentiment growth in Q1 2021* was driven by themes such as cloud, sustainability, and customer growth. The company continues to gain from work-from-home (WFH) trends, with mentions of revenue and customer growth increasing by around 21% in 2020 compared to 2019, finds GlobalData, a leading data and analytics company.
Rinaldo Pereira, Senior Business Fundamentals Analyst at GlobalData, comments: “GlobalData’s survey revealed that around 28% of respondents preferred remote work, while around 45% preferred a mix of remote and return to office**. What’s more, 24% of respondents considered collaboration tools such as Zoom to shape the future of work.”
With offices wary to fully open in 2021, Zoom added to its massive revenue gains. The video-calling software maker is also focusing on new product categories to drive further growth in 2021. GlobalData’s filings database identified that mentions of new products, quality products, and product experience were among the top rising keywords in Zoom’s most recent earnings transcript.
Pereira adds: “Filing mentions of WFH, remote work, video calling, and related keywords for several companies continued to rise across 2020***. The slight dip in Q1 2021 is likely due to the growing trend of return to office with a mix of WFH.”
Mergers and acquisitions (M&A) was also a key rising theme for the past two quarters (Q4 2020 and Q1 2021). Zoom acknowledged the possibility of buying companies while having healthy cash flow.
Pereira concludes: “Looking beyond 2021 and post-COVID-19, questions arise on Zoom’s stability as a growth engine. Yet, the company lost fewer than expected customers in the past quarter despite the return to office trend. This highlights that fact that Zoom’s ever-growing brand value is likely to keep it among the most used communication software among corporations well into 2023.”
*Q4 2021 (ended January 2020) Earnings transcript released on 1 March 2021
**GlobalData’s Coronavirus (COVID-19) – Cross-Sector Impact, published 3 March 2021
***GlobalData’s Disruptor Intelligence Center: Universe of 17,831 companies in the Company Filing Analytics Database