For Zoom (ZM -1.74%), big companies spending big money is a serious opportunity.
In this Backstage Pass video, which aired Sept. 28, 2021, Motley Fool contributor Brian Withers explains.
Brian Withers: But there's room for opportunity.
This is probably my favorite slide from Zoom, is this right here is 10,000 annual recurring revenue, and looking at Q2 two years ago, Q2 last year, and Q2 this year, they're looking at the percent penetration of Global 2000.
They have 36 percent of the Global 2000 as customers, and that 36 percent is spending greater than $10,000 a year. The whole idea of this chart is the Global 2000. You think of these largest 2,000 companies in the world, they should all be very large Zoom customers, is certainly the way Zoom is looking at it.
When you move up to who is spending $100,000 a year, it goes from 36-16 percent. They only have 16 percent penetrated in the Global 2,000 for 100,000 a year, and look at this, for a million, only five percent penetrated.
There's actually a number of companies that are spending a million dollars that are outside of the Global 2000. That even further reinforces that this five percent can get much bigger over time.
Asia-Pacific and EMEA international is a huge growth area for the company. You can look at the revenue growth year-over-year, and you can see that Asia and Europe are growing faster than the Americas. You can look at some of the top countries by revenue. Certainly, an opportunity internationally there.
This is a great introduction into the next sections. Five percent penetration for Zoom Rooms, and we'll talk about what Zoom Rooms are later. Of all of their accounts, five percent also have the Zoom Rooms setup, and only four percent have Zoom Phones.
If you're looking for ways to grow just with their current accounts, this is a tremendous growth opportunity.
