👋 In today’s update, we’re talking about Zoom.
- What do they do, what products do they sell, and who are their competitors?
- Are they an economic franchise or just a business?
- What’s their ceiling? Risks?
Resources used in this article:
- Zoom’s S-1: Management’s discussion about their business starts on page 54.
- Alex Clayton’s breakdown of Zoom’s S-1.
An Overview of Zoom
What do they do?
Zoom was founded in 2011 by Eric Yuan. Eric was a lead engineer for Cisco Systems Webex product (collaboration product similar to Zoom). Zoom helps companies communicate through video. They enable face-to-face communication through video, audio, and chat in a single meeting across different devices (desktop, iPhone, iPad) and different locations. For example, they’ve helped one customer with 1,000 all-remote employees, grow and maintain their culture.
Their goal is simple: To make Zoom meetings better than in-person meetings.