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What Does Zoom's Customer Breakdown Look Like?

By Brian Withers – Oct 7, 2021 at 3:15PM

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And how has it trended?

Getting a sense of a company's customer set, both now and into the future, gives you insight into its strategy. Zoom (ZM -0.28%) is pretty ubiquitous today, both for consumers and in the business world.

In this Backstage Pass video, which aired Sept. 28, 2021, Motley Fool contributor Brian Withers breaks down where Zoom makes most of its money.

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Brian Withers: This is interesting. As you can see, this Q4 pre-COVID number, 80 percent of their revenue came from customers with more than 10 employees, and then 20 percent came from this 1-10, really small.

You can see during the coronavirus, this is the part that considerably got larger and has trickled down a bit. They have some retention numbers which I'll show, and they think the worst is behind them from this perspective.

But I also see this is going to get bigger over time to this large company revenue piece.

When they look at this is just another cut at the customer set, 17 percent with personal emails, things like Gmail or is paying for the contract. They're estimating around 80 percent of their customers are business customers, and then they range from this is 11-250.

This is more than 250 employees and this is small, so they have a well-rounded size mix from their customers. They approach their go-to-market two ways. They have an online. This is just the try-and-buy from a SaaS model, where you go on, you download it yourself, the business doesn't have to be involved.

Then they talk about this direct channel on ISV, independent service vendor.

These are ways that it's going to market for larger companies. 

Brian Withers owns shares of Zoom Video Communications. The Motley Fool owns shares of and recommends Zoom Video Communications. The Motley Fool has a disclosure policy.

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