ZOOM

“We deliver happiness”

Group 19
Milo Alberto Dainelli 3140565
Maria Paola Di Crosta 3144147
Giacomo Gulmini 3142665
David Aprile 3144399
Nicolae Cretu 3143201
 “Before I left Cisco, I spent a lot of time talking with WebEx
HISTORY customers. And every time, when I talked with a WebEx customer,
after the meeting was over, I felt very, very embarrassed because I
did not see a single happy customer. And I tried to understand, why
is that? And I summarized all the problems all those WebEx
customers they shared with me. You know, finally, I realized all
Aim: Developing a new product to solve emerging those problems are brand new problems.” — Eric Yuan, Founder of
video-communication problems: Zoom
 Connection issues
 Installation process frustrating for the IT department
 Unhappy customers
 Poor optimization and high infrastructural costs
 Jun 2011 Sept Feb Jan
Jan 2013
(founding) 2013 2015 2017

Amount raised: Amount raised: 10 Amount raised: Amount raised: Amount raised: 115.5
3 million million 6.5 million 30 million million
Original name: Post-money Post-money Post-money Post-money valuation:
Saasbee, Inc. valuation: 24.5 valuation: 49.8 valuation: 1 billion
million million 205.8 million
 INSTITUTIONAL STRUCTURE
Top 10 Owners of Zoom Video Communications Inc
 Firm has many core shareholders, such that many
Shares
employees and other firms with whom it’s established Stockholder Stake owned Total value ($)
partnerships.
The Vanguard Group, Inc. 5.18% 10,082,240 4,647,005,238
 Zoom’s main shareholders are mutual funds (The
Vanguard Group,Hillhouse Capital Advisors,…) Morgan Stanley Investment Managem... 4.42% 8,615,338 3,970,895,438

 Eric Yuan owns 19% of the company. Hillhouse Capital Advisors Ltd. 3.52% 6,856,980 3,160,450,652

 The CODE (Code of business conduct and ethics) points

out the high ethical standards the firm wants to keep. It BlackRock Fund Advisors 3.39% 6,593,546 3,039,031,287

contains anti-corruption and antitrust laws and it regulates Baillie Gifford & Co. 3.23% 6,296,064 2,901,918,858

how to use firm’s assets.

Renaissance Technologies LLC 2.70% 5,247,859 2,418,790,692
 Many tasks are performed by the Board of Directors
(three committees: Compensation Committee Charter, Morgan Stanley Asia Ltd. (Investm... 2.54% 4,939,756 2,276,782,938

Audit Committee, Nominating and Corporate Governance

Committee. SSgA Funds Management, Inc. 1.79% 3,479,409 1,603,694,402

 «Our mission is to make video communications Coatue Management LLC 1.30% 2,521,307 1,162,095,609

frictionless and secure».

T. Rowe Price Associates, Inc. (I... 1.21% 2,362,028 1,088,682,325
 CORPORATE STRATEGY

 Product/ service: videocall service

 Zoom has always been a single business, providing only the service they
are known for and relying on partnerships with other firms, such as
Polycom, in order to make their product accessible for customers
instead of integrating the production of electronic devices.
 In the last year, following the Covid-19 pandemic, Zoom’s geographical
scope has quickly reached international levels and its brand is now the
most recognized in its field all around the world. Its services are
available in almost every country, except for Cuba, Iran, North Korea,
Syria, and the Crimea region in Ukraine.
 CORPORATE STRATEGY: S.H.A.P.
Zoom’s success is based on principal winning strategies:

Simplicity: Zoom is accessible to everyone. The layout is essential and it is truly

easy to join a meeting.

Happiness: as the company’s slogan states, Zoom’s main aim is to make its
customers happy iand satisfed. Zoom free plan is exellent and the developers
constantly improve the service according to customers’ feedbacks.

Advertising: Zoom’s growth is certainly due to its effective marketing strategy,

which includes both modern, such as social nertworks, and traditional tools, as
billboards.

Partnerships: over the years Zoom built partnerships with companies in order to
make their product accessible to a greater public.
CEO Tax CULTURE
CFO
Eric Yuan Information
Accounting
• Zoom wants to «deliver happiness»
security
COO • An entire team is dedicated to keep
Policy
employees happy. In order to do so,
International Zoom joins many initiatives such as
UK, Ireland «Bring your parents to work» or
volunteering experiences.
Compliance
ethics

• Most important question in interviews:

DIversity «What does culture mean to you?»
Communication • At Zoom workers feel like they can make
Marketing
Customer success the difference: many awarrds for those
Partnerships employees who have done an outstanding
HR Talent job.
acquisitions
• Virtual Culture Development: plan made
BusDev and
Product Engineering
channels
to transfer into the working environment
Entreprise sales
all the cultural values of the firm.
Revenue

Sales operations

North America
Development
CTO Procurement
Cyber defenses
Major accounts
Legal Support services

Global CIO
CIO
 COMPETITIVE STRATEGY
Porter model of the videoconference industry

 Direct established competitors: initially weak, but it has outstandingly

increased in the last year
 Bargaining power of customers: extremely high
 Bargaining power of suppliers: very low
 Threat of substitutes: low, especially with the Covid-19 pandemic
 Threat of entry: initially high, but it has definitely decreased in the last
year
 COMPETITIVE STRATEGY
Zoom’s strategy and advantages
 Zoom has made the service mainly free, and the users only have to pay
for some “upgrades” that lengthen the time of the call or unlock special
features. They have focused a lot more than their competitors on the
customers’ experience, creating a more friendly and easy to understand
graphical layout; finally, they have implemented CPRs in order to improve
the brand reputation.
 By being the most technologically advanced firm in the market at the
pandemic outbreak, they’ve also gained the first move advantage.
 FINANCIAL PERFORMANCE
Ratios 2018
2020 ROTA:1,7%
ROTA:0.98% ROS: 1,9%
ROS:2% Asseturnover: 0,9
Asseturn: 0,48 ROE: -101
ROE: 3.03% Current ratio: 1,8
Current ratio: 3,3 Working capital to sale: 37% 
Working capital to sale: 1,22
Debt/Equity: 0,54
Interest coverage: 0.94
Cost of debt: 3  
Shares market value after IPO: 36$
Shares market value in January 2020 : 74$
Current share market value: 439$
Number of shares after IPO: 9 billions
Number of shares January 2020: 254millions
Market capitalization: 18796 m
Book value: 0,003 
Earnings per share: 10^-4
Earnings yield ratio: 1,43*10^-6
Market to book: 22539