According to Sameer Raje, General Manager & Head (India & SAARC), India is one of the fastest-growing countries in Zoom Video Communications’ APAC business because more and more businesses are integrating video and collaboration platforms into their workflow.
According to Sameer Raje, General Manager & Head (India & SAARC), India is one of the fastest-growing countries in Zoom Video Communications’ APAC business because more and more businesses are integrating video and collaboration platforms into their workflow.
The Nasdaq-listed video communications company, which reported its quarterly and full-year results on February 28, has seen global business slow as people return to offices and reduce their Zoom usage as the pandemic fades.
Its revenue for the fiscal year 2021 increased by 55% to $4.099 billion. Its quarterly revenue for November-January 2022 increased by 21% year on year (YoY) to around $1.071 billion, a decrease from the 35% increase in the previous quarter and a fraction of the 369% increase in November 2020-January 2021. Zoom operates on a fiscal year that runs from February to January.
However, despite being on a much lower base, the APAC region’s growth has been higher than the company’s global growth numbers. Its APAC revenue in the fourth quarter increased by 31.4 percent to $155 million. APAC, which accounts for 14.4% of total revenues, includes Japan, which is one of Zoom’s largest revenue contributors.
“Whether it’s video KYC or any other type of business with a workflow, people are looking at incorporating video as a collaboration platform.” That is why India continues to grow at a rapid pace on a monthly basis,” he told Business Today. Whether it’s by including a tab on a website where visitors can click to start a video meeting or by signing test documents in online tutoring, Indian businesses are utilising Zoom in novel ways, according to him.
Overall, the company expects 20% revenue growth for its enterprise or corporate businesses, while it expects flat growth for its online business, which includes many customers who use the service for free.
“In India, we are seeing the exact same trend where enterprises are adopting Zoom big time,” Raje said, adding that telemedicine and pharmaceuticals, auto manufacturing, and edtech are all using Zoom for real-time applications.
This comes as the California-based company faces the difficult task of finding newer ways to stay relevant beyond the pandemic, especially with competitors Microsoft Teams and Cisco’s Webex offering similar services.
“We are working very hard to transition from a meeting company to a platform company,” CEO Eric Yuan said during a recent earnings call in response to a similar question from an analyst.
The global health crisis practically made the company a household name, as millions of people all over the world were forced to use Zoom to continue working, studying, and connecting with family and friends remotely. However, with the pandemic receding in many parts of the world, including India, it will be interesting to see how well Zoom navigates this changing period.
