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Zoom: The Transition To Large Enterprise
Khaveen Investments · 2026-05-05 · via All Articles on Seeking Alpha

Summary

  • Zoom is transitioning its business model from Online Customers to Large Enterprises, projected to become the largest revenue segment by 2028.
  • Zoom's upselling strategy and robust feature development support sustained ARPC and customer growth in Large Enterprise, despite high pricing pressures.
  • While Zoom’s market share is expected to decline due to competition and pricing, its focus on R&D ensures leadership in non-AI and AI features.
Woman Planning Strategy With Colleagues in Meeting

Morsa Images/DigitalVision via Getty Images

By Nicholas Tan, Investment Research Analyst @ Khaveen Investments

In this analysis, we initiate our coverage on Zoom Communications, Inc. (ZM), an application software company that focuses on offering software for its customers

8.34K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of ZM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Khaveen Investments is registered as an investment adviser with the U.S. Securities and Exchange Commission (SEC). Registration with the U.S. SEC does not imply a certain level of skill or training. No information in this publication is intended as investment, tax, accounting, or legal advice, or as an offer/solicitation to sell or buy. Material provided in this publication is for educational purposes only and was prepared from sources and data believed to be reliable, but we do not guarantee its accuracy or completeness.

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