ZOOM road show presentation and prospectus

Thought this might be useful for you guys following ZM:



Hi yodude05,

When I click the link, the page says “access denied”.

Is this a private presentation? If so, maybe you could provide the board with some highlights without violating any copyrights…


Hi Matt,

Sorry, didn’t know it was a broken link. It’s not a private presentation; I found it on RetailRoadshow’s twitter account. Here’s the link to the tweet: https://twitter.com/RetailRoadshow/status/111527339668477132…

Try this again and let me know if it works.


It’s the wrong link… Try this…

… then, “I Agree”


Thanks yodude05,

That worked fine. It’s a 26 minute video presentation and I highly recommend it to anybody interested in Zoom. It’s presented in a very easy to understand format, and even Jeff Lawson, CEO and founder of Twilio makes an appearance. I was hoping it would be a video that would not make me like this company more, but no such luck! :slight_smile:



Just got the notice from Fidelity that it is being put to market 4/17 after market close.


I REALLY hope this puts a damper on Zoom demand as it has absolutely nothing to do with the business… but it probably won’t.

I do admire how the CEO and CFO are handling this. Speaks to the quality/transparency of management.


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8.7b at initial ipo price.
Means this is probably a 10b mkt cap on ttm revenues of 330m in a space crowded w competition.

About a 30 p/s outof the gate.

Not sure it makes sense over ttd ayx and others.

I am ok w missing out on this one.


I find it interesting ZOOM was valued at $1 billion in 2017. That’s a 9 fold increase in 2 years.

It appears that the rally in public SaaS stocks is influencing the valuation of private companies.

WebEx was running at $380 million in revenue in 2006 when Cisco acquired them, which is slightly more than what Zoom is doing now, yet WebEx was bought out at $3.2 billion. However they were growing revenues at 23% or so which if you look at it by year, WebEx had seen major revenue deceleration over the past few years before they were acquired.

Here is WebEx’s statistics before they were acquired. Note the major slowdown in revenue between 2000-2003.




revenue growth of 100%+ over the next year, then 75% plus for the next 5 years will make a 30 p/s look like a true value.

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That is a nice video. I viewed it hoping to glean its moat. As Jeff Lawson states in the video, the key seems to be that the video conferencing simply works. I have tried webex, and gotomeeting at our company for webinars and conference calls. We have not required video. But if video is key and if what Jeff says is true then that appears to be the moat. CEO Yuan says legacy systems have expensive complicated hardware. He is likely referring to things like polycom systems which we do use.

Zoom has a 10% marketshare in web conferencing. webex and logmein are 3x larger

This suggests a $3B market for web-conferencing. Also, the chart at the bottom of the above links shows that the number of websites using zoom has gone by 3x (2k to 6.4k) for zoom while webex and gotomeeting have stayed flat. The growth clearly suggests a product advantage. Perhaps better video?

But the S1 states the following:

Within this market, we address the Hosted / Cloud Voice and Unified Communications, Collaborative Applications and IP Telephony Lines segments. IDC estimated that these segments combined represent a $43.1 billion opportunity in 2022

$3B market for web conferencing now vs $43B TAM by 2022 seems quite a stretch. I think this is key to understand to determine the investment thesis.


Well worth the effort to watch this video on Zoom (ZM). Hard to tamp down the enthusiasm for this one given the testimonials and strong facts:

TAM $43+billion
Glassdoor Ratings: #2 company, #1 CEO
Gartner highly rated quadrant for last 3 years
NPS Score greater than 70
130%+ net dollar expansion rate
80%+ gross margins
Customer growth 116% over past 3 years
Cash flow positive
Video first architecture
Core Values: Caring, Happiness

Lots of things we look for in the companies we follow and invest in on this board.



Right you are John.

One small correction or maybe a clarification.

They grew customers at 116% CAGR.



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Our consulting firm uses Zoom. It does work really well. It is way ahead of Gotomeeting in simplicity. We use it for calls of up to 200 people with probably 100 on video and it very rarely even hiccups.


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Thanks Darth and good job! Someone was paying attention:)

I looked back and right you are! That CAGR is 116% for customer growth of companies with greater than ten employees.


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revenue growth of 100%+ over the next year, then 75% plus for the next 5 years will make a 30 p/s look like a true value.

100% over the next year, sure, I can believe that.

75%+ for the next 5 years? I think that’s a little overly optimistic…maybe over 75% for 2-3 years, but I can’t think of any company that has maintained 75%+ growth for 5 years once it’s no longer off of the small base.

Not saying Zoom won’t be a great investment, I haven’t decided yet whether I’ll take a position or not with it, just that we’ve seen some great companies with triple digit growth off of the small bases, but once they start scaling up, just can’t maintain that kind of growth rate for that long of a period.


My wife is a life coach. The coaches she knows are all using Zoom for coaching sessions, previously Skype.

She will be using it for webinars that last longer than the free membership allows. So we are now paying Zoom $14.99/month (for the foreseeable future). Life coaches are a drop in the bucket for the TAM. But it seems to me, that this is what the cool kids are using (because it works), and I expect the network effect to continue.


What are the big differences between Webex in the 1st decade and now? I recall we only started to use Webex sporadically at the end of the 1st decade and we were using more GoToMeeting in the early days but in 2013 or 2014 we started to use ZOOM and we still are.

OK, that all seems pretty impressive. They really tout “it just works”.

So, I looked in the Microsoft Store for Windows 10 to see what Zoom products were available. My wife has been video conferencing with her family with Skype up until recently, but for some unknown reason that connection now fails. She is currently using Weixin (We Chat) which works, but is restricted to a mobile platform. So now she uses a small screen phone rather than her laptop, less than ideal.

But here’s what I found in the MS Store. First, two Zoom products are available, Zoom Rooms and Zoom for Microsoft Edge. Hmmm, OK, not sure which of those might be appropriate. We use the Chrome browser, so the Edge product is probably not right. I looked at Zoom Rooms.

Two stars with 27 user ratings. That’s not too promising.
25% @ 5 stars,
0% @ 4 stars,
3% @ 3 stars,
7% @ 2 stars,
62% @ 1 star. Primary complaints, “doesn’t work”, “Won’t open”

That’s not too promising. The description (small print) states: "This is Zoom Rooms Controller app for your Windows tablet, it must be paired with a Mac or PC running Zoom Rooms application. For the Zoom Meeting client please visit zoom.us/download." Uh-oh, I suspect most (if not all) of those 1 star ratings were from people who did not read the description.

BTW, I checked Zoom For MS Edge, it appears to be an unrelated product which provides simplified magnification for almost any web app and claims to be compatible with Chrome, Safari, Firefox, Opera and Yandex.

Next, I looked at zoom.us/download. Ah-ha! Several downloads available (actually, somewhat confusing). But, scrolling down the list I find Zoom Extension for Browsers. Is that the right app? Who knows, the download screen doesn’t say much, “The Zoom Extension for Browsers allows you to start or schedule your Zoom meeting with a single click from your browser or within Google calendar.” I guess that’s it. Click on it and it takes you to the Chrome Store (I didn’t even know there was one). I won’t quote all the text, but there’s this, “Free unlimited minutes for 1-to-1 meetings and 40 minutes for group meetings.” This seems to be the right app.

4 stars with 289 user ratings. Unfortunately, Google doesn’t provide percentages of the ratings. But I read a few, I was particularly interested in what the 1 star raters had to say. From a quick review of random comments, it appears that the people who provided low ratings don’t understand what it is supposed to do, or don’t understand how to use it, or don’t trust Google and think the app is all about stealing their information (why did they download in the first place?).

In any case, until I am able to get the app installed on at least two machines I can’t say much more about it other than the download itself is not so simple as the CEO would have you believe. Here’s a quote from one of the complaints found in the support section, “I just registered for zoom, received a code, now how do I sign into the extension to start a meeting? what on earth is a SSO??? Please make this process easier, we’re not all programmers.” Good questions I think. And even though the section is labeled “support” there are a lot of questions and only one answer provided by another user rather than Zoom support.

Maybe Zoom is not as simple and intuitive as they would have you believe. That may not be all bad, it still might be easier to use than the competition. It still may be more reliable with a greater scope of functionality than the competition. I’m not in a position to know.