Zoom Video in recent months has been making a steady push to expand its product roster, adding conference room software (Zoom Rooms), cloud-based telephony (Zoom Phone) and an events marketplace (OnZoom). And now Zoom [$ZM] is reportedly planning to enter the market for email and calendaring software.
Zoom has begun developing a web-based email service, “and might offer a very early version of the product to some customers next year.” The story is attributed to “two people with direct knowledge of the matter.” The report also says that Zoom is “looking into” building a calendar application, and is considering developing corporate directory software.
The story asserts that Zoom CEO Eric Yuan has been considering expanding the company’s core offering to include a full set of communications tools, including email, messaging, and productivity tools—a move that would put the company in head-to-head competition with both Microsoft [$MSFT] and Alphabet’s [$GOOGL] Google. Coupa Software Price Target Raised to $365
The pandy drove an explosion in the use of videoconferencing in 2020, and Zoom has been a major beneficiary of the trend—revenue in the company’s most recent quarter was up 367%. But investors are starting to ask the tough questions about how the company will fare in 2021, with competition picking up and many students likely to return to classrooms at some point next year.
The cloud-based communications market is getting crowded. Microsoft has been aggressively pushing Teams, a unified communications suite that includes messaging, video and other tools that it bundles with its Office 365 productivity suite. And Google has a yuge base of Gmail, Google Docs and Google Hangouts users.
Meanwhile, RingCentral [$RNG] recently unveiled a new combined video and collaboration tool called Glip, offering the service free for up to 100 users. Cisco Systems [$CSCO] has overhauled WebEx, adding new collaboration features. And of course, Salesforce [$CRM] agreed to pay $27.7 billion in cash and stock for Slack.
Zoom stock on Wednesday is down 5.9%, to $384.91. While the stock is still up more than 460% for the year to date, Zoom shares have dipped about $200 from their October peak, losing about 35% of their value.