Had difficulty understanding I’m afraid, but did I hear right when Cramer asked Eric if the free customers would becoming paying customers and he said that was not his focus(or something) at present?
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Here’s a link.
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Yep that’s what he said, he’s not focused on any of the free users. Oh boy. Isn’t that exactly what we are all excited about and the reason the stock price shot up?
Not only that, this is a company founded by a guy from China. Hmmmmm…
No one trusts Chinese companies but we are supposed to trust this guy with doing the right thing with data?
Yes probably not the next Reed Hastings. Selling half my shares tomorrow.
TMB
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The thing that concerned me was when Cramer pointed out a lot of enterprises never ever want their data going through Chinese servers and he asked if there could be a box to check or something to block that from happening. Yuan completely blew the answer when he said that’s something that is extremely rare and not typical by failing to understand that there are a lot of companies who never want that to happen under any circumstance. Being told it’s a very rare event is not reassuring at all.
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I think what he was getting at was that he is focused on getting the word out rather than focusing on monetizing all of the free users.
Which makes sense. Once people have a good experience with the platform people will use it more (personal and enterprise).
In terms of the CEO itself seems like he knows his stuff but is a little hard to understand at times. Pretty evident English isn’t his first language - not that it really matters (as seen by the growth) but some people may have a bias.
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I thought the interview went pretty good. Yes, he should have had a different answer for the routing through China question, but he was honest about a world wide infrastructure. I also think the image was perfect. He is not focused on converting free users, likely because he doesn’t need to be. Instead, he is focused on helping the world cope with the new reality, and he is making it possible for many, many people-who were not trained at all-be able to still communicate and keep the world running. I like him.
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I am long ZM, but must say that this interview did not inspire confidence. I don’t want to criticize the man for his less than perfect English (although in all honesty I was not able to understand most of his answers), but I would like to criticize him for having a terrible sound system. I’m guessing that was not a function of the ZM application, but of his computer set-up. Sounded like he was in a cave somewhere.
How could the CEO of a company that provides a communication system not be absolutely sure that the technical aspects of his talk with Cramer were outstanding in every way? OK, could be factors beyond his control. I’m certainly not selling based on this. Probably a minor quibble in grand scheme of things. But just found it exceedingly odd.
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