Zoom’s sentiments have rebounded in quarter two, driven by its skyrocketing revenue growth after facing declines due to privacy concerns. The company’s coherent strategies on end-to-end (E2E) encryption are paying off as the flagship conferencing app developer generated more revenue in the second quarter of 2020, according to GlobalData.
Rinaldo Pereira, senior analyst at GlobalData, says: “Zoom gained virtual ubiquity due to the pandemic and has given us a peek into the future of video conferencing due to the work-from-home boom. This rise in potential users has supercharged competition, yet it seems that counterparts lack the traction to compete with Zoom. The app continues to be the most sought-after among corporates, educational institutions and general users. Yet, Google Meet remains a major threat to Zoom, as it is easier to set up and administer from an information technology ( IT) perspective.” Despite privacy concerns, Zoom continued to be the benefactor of high-value deals with several companies. The number of customers (with more than ten employees) more than quadrupled (458%) during the second quarter of 2020, while deferred revenue grew by around 310% year-on-year. Shares also reached all-time highs on the back of the company’s meteoric performance