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The 3 Secrets Behind Zoom’s Triple-Digit Growth

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If you work in the tech world, chances are you’ve heard of — or more likely, you’ve used — the video conferencing application Zoom.

At Drift, Zoom has become our go-to tool for running company meetings and hosting webinars.

And based on Zoom’s 700,000 business customers, which include half of the companies in the Fortune 50, it’s clear that a lot of other teams are seeing its value, too.
But it’s not just businesses using Zoom.

Zoom’s customer base also boasts 6,900 educational institutions, which includes 90 percent of the top 200 U.S. universities.

All customers considered, Zoom’s revenue grew nearly 300% in 2016, which marked the company’s fourth consecutive year of triple-digit growth.

To support that growth, Zoom has built offices in San Jose, Santa Barbara, Denver, Kansas City, Sydney, and London. Overall, the company now employs 600+ people.

By all measures, Zoom has become a hypergrowth company, joining the likes of Slack and MailChimp.

And following a $100 million series D led by Sequoia, Zoom has also become a “unicorn,” as their valuation has now stretched beyond $1 billion. (Although here’s a fun fact: Zoom’s founder and CEO Eric Yuan hates the term “unicorn,” and tells Zoom employees not to use it.)

After reviewing all of these stats, and remembering the ridiculous timeframe in which all of this happened, it begs the question:

How the heck did Zoom do it?

Published in: Marketing
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The 3 Secrets Behind Zoom’s Triple-Digit Growth

  1. 1. The 3 Secrets Behind Zoom’s Triple-Digit Growth
  2. 2. As someone who uses Zoom every single day to meet with my teammates, it’s easy for me to see the value. me
  3. 3. But here’s what doesn’t make sense: Video conferencing software isn’t new. And when Zoom officially entered the market back in 2013, it was absolutely crowded.
  4. 4. There were competitors in every direction, including big established players as well as a host of startups.
  5. 5. Flash forward to today, and Zoom has grown its customer base to 700,000+ businesses.
  6. 6. 100,000 200,000 300,000 400,000 500,000 600,000 700,000 2013 2014 2015 2016 2017 4,500 30,000 170,000 450,000 700,000 Zoom’s Customer Growth #ofbusinesscustomers blog.drift.com/how-zoom-grew
  7. 7. Last year, revenue grew 300%, marking their fourth consecutive year of triple-digit growth.
  8. 8. Oh, right, and since raising $100 million in funding back in January, Zoom’s valuation has grown to $1 billion. 🦄
  9. 9. Series A (Jan 2013) Series B (Sep 2013) Series C (Feb 2015) Series D (Jan 2017) $0 $25,000,000 $50,000,000 $75,000,000 $100,000,000 Total amount raised: $145.5 million valuation = $24 million valuation = $48.5 million valuation = n/a valuation = $1 billion Zoom’s Funding blog.drift.com/how-zoom-grew $6 million $6.5 million $30 million $100 million
  10. 10. By all measures, Zoom has become a hypergrowth company, joining the likes of Slack and MailChimp. But how the heck did they do it? I’ve uncovered 3 secrets behind Zoom’s growth strategy…
  11. 11. 1) Being customer-driven is ingrained in Zoom’s company DNA.
  12. 12. Eric Yuan Founder & CEO, Zoom (founding engineer, WebEx) From the moment we founded Zoom, our main focus has been to provide a cloud video communications solution that would make customers happy. “
  13. 13. 2) Zoom is building a product that can sell itself.
  14. 14. 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 2013 2014 2015 Zoom’s Meeting Participant Growth #ofannualmeetingparticipants 3 million 30 million 100 million blog.drift.com/how-zoom-grew
  15. 15. -Sequoia Capital spokesperson We had been watching the video conferencing space for many years because we were convinced that it was a huge market primed for innovation. But we couldn’t find a product that customers loved to use. That changed when our portfolio companies started raving to us about Zoom. “
  16. 16. 3) Zoom isn’t afraid to splurge when it comes to building their brand.
  17. 17. Want to learn more about how Zoom grew? Click here to read our in-depth post.
  18. 18. See why thousands of businesses are using Drift to generate leads and close deals faster.

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