What Zooms IPO says about the video collaboration space
Summary
Zooms initial public offering will represent a milestone on many fronts, but itll mostly be an indictment on a technology category that has repeatedly disappointed, failed to be cloud native and ultimately caused way too many meeting headaches. For anyone that frequently has meetings with screen sharing, voice, and video, Zooms ability to land paying customers, garner a strong following, and grow quickly isnt that surprising. For the fiscal year ended January 31, 2019, 55% of our 344 customers that contributed more than $100,000 of revenue started with at least one free host prior to subscribing. We developed a proprietary multimedia router optimized for the cloud that separates content processing from the transporting and mixing of streams. Zoom does warn that growth may slow over time, but the company is deploying tried and true enterprise sales techniques that will likely pay off.