Zoom’s Pandemic-fueled Growth is the Start, Not the End

The Video-communications Company’s Revenue Growth is Slowing, but it has Diversified its Offerings, Creating a Long and Wide Runway

Zoom Video Communications Inc. delivered “meager” growth of 191% in revenue during the most recently reported quarter and provided an outlook that suggests a slowdown to about 50% in the current period.

Zoom’s ZM, 1.51% results, released after the stock market closed Tuesday, comes after the ubiquitous video-communications company posted staggering revenue growth of 369% in the three months through January, which coincided with the worst period for the global pandemic. So growth of 191% in the three months through April has to be viewed in perspective.

Even before the report was issued, investors already started to tire of the rocket-fueled collaboration platform last fall when it began to sell off from its $589 intraday high.

In reality, the San Jose, Calif.-based company delivered an outstanding quarter. Most noteworthy is that the results reflect the first full year-over-year reporting of two periods in which the pandemic was driving rapid global adoption of the platform.

Growth like that will become more complicated, perhaps unachievable. However, that doesn’t mean Zoom doesn’t have a wide runway.

It’s time for investors to shift expectations and look for Zoom to grow like a cloud company and concurrently acknowledge that 50% growth is very good.

I believe as we exit the pandemic, there are several reasons to be encouraged by Zoom based on its growth in the right places and secular trends that won’t go away.

Where Zoom is Going

Here are key indicators of Zoom’s adoption, trajectory and upside.

First, the company has been wildly successful in growing its large enterprise customers. Zoom considers customers that have spent more than $100,000 over the trailing 12 months (TTM) as large customers. That number spiked 160% to 1,999 in the most recent period.

This result is marginally better than the previous quarter’s 156% growth, but more importantly, the company is consistently adding large companies that are spending significantly on the platform.

Zoom is also highly effective at turning free users into paid customers. As a result, the company saw a 130% net sales expansion rate for companies over 10 employees and has now been at or above that rate for 12 straight quarters.

The other misnomer with Zoom is that some believe it is just a mobile or desktop video-conferencing tool.

While video conferencing may be a predominant use, the company is aggressively diversifying the business:

  1. Zoom Phone has grown from 1 million to 1.5 million sets in just the first four months of the calendar year.
  2. The Zoom SDK (software development kit) is driving a budding ecosystem of development around Zoom.
  3. Zoom Rooms, which are hardware-enabled conference spaces, will integrate remote workforces to on-prem.
  4. Zoom has an event platform that will enable large-scale digital and hybrid events to be held live.

Zoom’s elegance has been in its simplicity. However, the company sees the need to go from utility to platform, and it is executing. To sum up, the company has materially improved and diversified its product, addressed significant security concerns and has grown revenue and earnings per share (EPS) not just annually but sequentially. It is a trifecta of success indicators.

Remote is Here to Stay

The last factor worth noting is that virtual and remote aren’t going away. Sure, returning to the office will happen, and it will happen very soon. And this will pare the exponential rate of growth Zoom has experienced.

However, the market won’t ignore the unprecedented productivity that remote work has yielded. Many companies will maintain flexible or remote work. Some even plan to do so indefinitely.

Universities and schools will also continue to embrace video for educational purposes, with many building the material infrastructure to support remote learning.

And events will come back but will likely look different with event planners engaging large audiences with remote tools to lower travel expenses and make the massive slate of events across industries more accessible to all.

It would be a big mistake to think the end of the pandemic means the end of video conferencing.

In short, 300%-plus growth may be a thing of the past, but growth on par with the likes of a cloud or SaaS company such as Microsoft’s MSFT, 0.59% Azure (about 50%), Salesforce CRM, 0.39% (23%) and Service Now NOW, 2.05% (30%) is not only probable but likely. And, building on its roughly $4 billion guidance for fiscal 2022, a range of 23%-50% growth provides tremendous upside. There’s plenty of room for investor upside.

Zoom’s meteoric rise amid a pandemic fueled a storm of remote work, and online meetings may have been a catalyst in helping it reach new heights. But its future still has promise now that the product is cemented in enterprises and organizations around the world.

Disclosure: Futurum Research is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article. 

The original version of this article was first published on MarketWatch.

Author Information

Daniel is the CEO of The Futurum Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise.

From the leading edge of AI to global technology policy, Daniel makes the connections between business, people and tech that are required for companies to benefit most from their technology investments. Daniel is a top 5 globally ranked industry analyst and his ideas are regularly cited or shared in television appearances by CNBC, Bloomberg, Wall Street Journal and hundreds of other sites around the world.

A 7x Best-Selling Author including his most recent book “Human/Machine.” Daniel is also a Forbes and MarketWatch (Dow Jones) contributor.

An MBA and Former Graduate Adjunct Faculty, Daniel is an Austin Texas transplant after 40 years in Chicago. His speaking takes him around the world each year as he shares his vision of the role technology will play in our future.

Related Insights
Conduent's $447M Refinancing Clears the Path for AI-Led Growth
October 24, 2026

Conduent's $447M Refinancing Clears the Path for AI-Led Growth

Conduent closed a $447 million refinancing deal, extending credit facilities and reducing financial risk while enabling execution of its ASCEND 2026–28 strategic plan to become a premier AI-led business process...
IBM Q3 FY 2026 Software Growth and Deal Recovery Lift Execution
October 23, 2026

IBM Q3 FY 2026: Software Growth and Deal Recovery Lift Execution

Futurum Research examines IBM’s Q3 FY 2026 earnings, including software execution, infrastructure deal recovery, sovereign AI demand, and consulting delivery efficiency....
SAP Q3 FY 2026 AI and Data Integration Expand Cloud Adoption
October 23, 2026

SAP Q3 FY 2026: AI and Data Integration Expand Cloud Adoption

Futurum Research analyzes SAP’s Q3 FY 2026 earnings, examining AI-led cloud migration, enterprise data integration, and the shift toward adoption-based economics....
Sword Group's 17% Organic Growth Validates AI Transformation Bet
October 23, 2026

Sword Group's 17% Organic Growth Validates AI Transformation Bet

Sword Group achieved 17.1% organic growth in Q3 2026 with €100.2M revenue, driven by major EU and enterprise contract wins that validate its AI transformation strategy and position it for...
SCSK Security Targets the Zero Trust Advisory Gap
October 23, 2026

SCSK Security Targets the Zero Trust Advisory Gap

SCSK Security launched a vendor-neutral Zero Trust Architecture Design Service using MITRE ATT&CK and NIST standards to help enterprises justify investments and optimize multi-cloud security over 3-6 months....
UK Finance Leaders Bet on AI but Can't Prove It's Working
October 23, 2026

UK Finance Leaders Bet on AI but Can't Prove It's Working

New FIS research exposes a critical paradox: 90% of UK finance leaders have clear AI business cases for cash management, yet 29% cannot measure the value delivered. Fragmented data infrastructure,...

Book a Demo

Welcome

The vision behind everything in Futurum’s Custom Research practice is this: research should show you what is happening, what comes next, and what to do about it. It should be personal to each audience, easy for people to grasp, and structured so LLMs can reason over it accurately. And it should be fast and turnkey; you want answers now, not another project to carry for quarters.

Whether you are defining business, channel, or go-to-market strategy; evaluating vendors or justifying ROI; or commissioning research to fill an emerging market need, we have your back, with a program that answers your questions with the objectivity and credibility to drive real decisions.

To do it, we bring unmatched data to bear: Futurum research, surveys, and market projections; validated market feeds; ETR’s 15 years of insight from 10,000 technology decision-makers; G2’s buyer and user data; and what our analysts hear every day. Add leading primary collection, from AI-moderated voice interviews to surveys and analyst-led interviews, all turnkey, and every project comes out credible, nuanced, and actionable.

And we don’t just drop the results in your lap. For internal work, we provide analyst-led sessions, interactive dashboards, and a range of formats. For market-facing work, Futurum delivers turnkey activation and amplification that actually gets seen, by people and by LLMs, through our media and share of voice. This is research that moves decisions and markets.

We will meet you wherever you are, from a fast-turn brief to a multi-year program, and shape the work to your goals, timeline, and budget. The right program for your moment.

If any of this is useful, I would love to talk.

Benjamin Brown, VP Custom Research, Futurum Research

Benjamin Brown

VP, Custom Research · The Futurum Group

Newsletter Sign-up Form

Get important insights straight to your inbox, receive first looks at eBooks, exclusive event invitations, custom content, and more. We promise not to spam you or sell your name to anyone. You can always unsubscribe at any time.

All fields are required






Thank you, we received your request, a member of our team will be in contact with you.