New Research Shows Why and How Zoom Could Become an Advertising Driven Business

Zoom’s stock: Up and down and up and down and up and to the right.

As the coronavirus crisis built to pandemic levels in early March, a relatively unknown tech company confronted a defining opportunity. Zoom Video Communications, a fast-growing enterprise videoconferencing platform with roots in both Silicon Valley and China, had already seen its market cap grow from under $10 billion to nearly double that. As the coronavirus began dominating news reports in the western press, Zoom announced its first full fiscal year results as a public company. The company logged $622.7 million in revenue, up 88 percent from the year before. Zoom’s high growth rate and “software as a service” business model guaranteed fantastic future profits, and investors rewarded the company by driving its stock up even further. On March 5th, the day after Zoom announced its earnings, the company’s stock jumped to $125, more than double its price on the day of its public offering eleven months before. Market analysts began issuing bullish guidance, and company executives noted that as the coronavirus spread, more and more customers were flocking to Zoom’s easy-to-use video conferencing platform.

But as anyone paying attention to business news for the past month knows, it’s been a tumultuous ride for Zoom ever since. As the virus forced the world inside, demand for Zoom’s services skyrocketed, and the company became a household name nearly overnight. Zoom’s “freemium” model – which offers a basic version of its platform for free, with more robust features available for a modest monthly subscription fee – allowed tens of millions of new users to sample the company’s wares. Initially, Zoom was a hit with this new user base – stories of Zoom seders, Zoom cocktail parties, and even Zoom weddings gave the company a consumer-friendly vibe. Just like Google or Facebook before it, here was the story of a scrappy Valley startup with just the right product at just the right time. According to the company, Zoom’s monthly users leapt from 10 million to more than 200 million – an unimaginable increase of 2,000 percent in just one month.

Read More
1 Comment on New Research Shows Why and How Zoom Could Become an Advertising Driven Business

Sign up for the Newsletter

What’s NewCo? These Videos Will Help

The NewCo festival model is counter-intuitive, so we made these videos to help explain what the fuss is all about. I thought I’d share them here. The first one features folks talking about their experience attending festivals, and the second one features host company presentors doing the same. Enjoy! (Oh, and NewCo New York registration is open now, sign up before the best sessions fill – more than a dozen, including TED, NYT, Gimlet, VaynerMedia, and BuzzFeed, are nearly full!)

Leave a comment on What’s NewCo? These Videos Will Help

The 140 Character Video Is Six Seconds Long

Twitter announced its integration of Vine today, and to put not too fine a point on it, the service is, in essence, a way to create a video tweet. If a text tweet = 140 characters, then a video tweet = 6 seconds. More details over at TNW, but this announcement is quite consistent with my post earlier this week: Portrait of Twitter As A Young Media Company.

Read More
2 Comments on The 140 Character Video Is Six Seconds Long