ZM added more users in 2 months than in 2019

The company added 2.22 million monthly active users so far in 2020, while in 2019 it added 1.99 million, according to Bernstein’s estimates.

https://www.cnbc.com/2020/02/26/zoom-has-added-more-users-so…

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Zoom had 12.92 million monthly active users, up 21% since the end of 2019, Chrane and Isaacs wrote, citing data from privately held Apptopia. Many of the new users are taking advantage of Zoom’s services without paying for them, but Zoom could end up with customers paying for premium tiers of service as well, the analysts wrote.

If we assume Zoom continues to add users at the same rate throughout 2020, they will end the year having added 13.32 million MAUS. Going by the numbers above, Zoom started the year with 10.68 million MAUS.

That’s 124% growth in users. The article says that lots of users are using the free service. Indeed, Zoom has added more features to the free service, lifting the 40 minute limit on group discussions in China. If these users are disproportionately using the free service, this won’t provide the revenue growth investors are anticipating. So the big question is, how does this growth in MAUs translate to revenue growth? We’re not talking about customers, so DBNER is already factored into the MAU growth numbers.

Will the conversion to paid customers be more, less, or equal to last year?
What about revenue from value add services such as Zoom Phone and Zoom Rooms? How is that to be factored in?
Will Zoom continue to add users at the same rate throughout 2020?

These are the big questions that will determine whether or not the current valuation is justified. There’s just a whole lot of unknowns.

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Thanks- I suspect growth is also very rapid but really wonder what data sources or assumptions they used to make this estimate. Is the report publicly accessible?

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