Zoom Communications Inc ZM

An Expanding Portfolio Supports Switching Costs for Zoom’s Narrow Moat

Zoom Video Communications’ mission is "to make video communications frictionless," which it accomplishes with a unified, video-first communications platform that incorporates video, voice, chat, and content sharing. Zoom more recently introduced both a phone system and a contact center solution. The firm offers a differentiated peer-to-peer technology, complete with proprietary routing technology. Zoom is a recognized market leader in meeting software and is disrupting and expanding the $100 billion market for collaboration software with its ease of use and superior user experience. We think the pandemic lockdowns demonstrated the strength of the solutions, which, combined with an expanding portfolio and strong returns, help establish a narrow moat.