Today ZM announced a parternship with Lumen to include Zoom in their Unified Communications & Collaboration Suite and i was trying to understand whether it’s something meaningfull for future revenue or not. I’m still new to the ropes of investing so everytime i read something like this, it’s difficult to asses whether it’s something relevant for the business or just noise. So i’m going through the process here to share with others and hopefully improve as well from feedback and other’s opinions.
I haven’t heard about Lumen or Century Link (they used to be called that) so i did a little reasearch and it seems they provide infrastructura, connectivity and related services to both enterprise, smb and consumers.
Before digging into the numbers, i’ve looked for the releases of each of the two companies but i couldn’t find Lumen’s realease on their site. Maybe it’s just poor corporate communications with i doubt this would happen if it wasn’t something significant for Lumen. In fact i found them still listing Webex, BlueJEands and Skype in their collaboration suite page (https://www.lumen.com/en-us/solutions/collaboration.html) but not Zoom mention.
Zoom (through their CRO, Ryan Azus) said: “We’re excited to partner with Lumen to ensure wider availability of our platform.” & “Customers expect that Zoom will be ready and working when they need it.”
In the same PR Lumen’s Sr. Dir. of Product Mgmt, Craig Richter, said “Partnering with Zoom means we can offer our worldwide customers an industry leading edge enterprise video communications platform… This is a terrific addition to our Unified Communications portfolio…”
From those quotes i’m sensing that is just another sales outlet for ZM and just another service for Lumen’s customers, so before digging into numbers, the news seem rather intracendental.
Lumen doesn’t list total customers but if found they have 4636 broadband consumer customers. In this regards it doesn’t like that there would affect Zoom’s numbers having reported 370k total customers. Also, their total revenue from businesses last Q (Intl.+Enterprise+SMB) was $2,929M.
Zoom, on the other side, reported $ 440M of enterprise revenue and 988 Customers in that realm.
Considering ZM rev. last Q & assuming even a small % of Lumen’s revenue would eventually find it’s way to ZM top line it seems it could be meaningful.
To sum up, the release itself sounds intracendental though in terms of numbers it could potentially help grow ZM’s business accounts in a meaningful way or at least something that would tip the scale a bit in their revenues.
Again, this is my opinion and i consider myself pretty much a rookie. But i’m sharing this in hopes to improve myself and maybe help others in the same process.
Link to ZM PR: https://investors.zoom.us/news-releases/news-release-details…
Lumen’s latest Q results presentation: https://s24.q4cdn.com/287068338/files/doc_financials/2020/q2…