Zoom Video Reportedly Developing Email, Calendars - Barron's

Zoom, the videoconferencing firm, is supposedly working on web-based applications for email and calendars in... — Zoom, the videoconferencing firm, is supposedly working on web-based applications for email and calendars in the latest expansion of its offerings.
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Zoom Video Communications in recent months has been making a steady push to expand its product roster, adding conference room software (Zoom Rooms), cloud-based telephony (Zoom Phone) and an events marketplace (OnZoom).

And now Zoom (ticker: ZM) is reportedly planning to enter the market for email and calendaring software.

According to The Information, Zoom has begun developing a web-based email service, “and might offer a very early version of the product to some customers next year.” The story is attributed to “two people with direct knowledge of the matter.” The report also says that Zoom is “looking into” building a calendar application, and is considering developing corporate directory software.

The story asserts that Zoom CEO Eric Yuan has been considering expanding the company’s core offering to include a full set of communications tools, including email, messaging, and productivity tools—a move that would put the company in head-to-head competition with both Microsoft (MSFT) and Alphabet’s (GOOGL) Google.

Zoom declined to comment on the report.

The Covid-19 pandemic drove an explosion in the use of videoconferencing in 2020, and Zoom has been a major beneficiary of the trend—revenue in the company’s most recent quarter was up 367%. But investors are beginning to ask tough questions about how the company will fare in 2021, with competition picking up and many students and knowledge workers likely to return to classrooms and offices at some point next year.

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The cloud-based communications market is getting crowded. Microsoft has been aggressively pushing Teams, a unified communications suite that includes messaging, video and other tools that it ships with its Office 365 productivity suite. And Google has a large base of Gmail, Google Docs and Google Hangouts users. (That’s what Barron’s users, along with Slack Technologies (WORK).)

Meanwhile, RingCentral (RNG) recently unveiled a new combined video and collaboration tool called Glip, offering the service free for up to 100 users. Cisco Systems (CSCO) has overhauled WebEx, adding new collaboration features. And of course, Salesforce.com (CRM) recently agreed to pay $27.7 billion in cash and stock for Slack.

Zoom stock on Wednesday is down 5.9%, to $384.91. While the stock is still up more than 460% for the year to date, Zoom shares have retreated about $200 from their October peak, losing about 35% of their value.

Write to Eric J. Savitz at eric.savitz@barrons.com

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