Video chat apps (Zoom and Houseparty) are having a moment

No more hiding behind a screen. Video chat apps are having a moment. Houseparty, a start-up, targets teens. Zoom, which is poised to list on public markets this year, is aimed at office workers. Zoom is easy to use and useful for multinational companies that want to stay in touch with employees scattered throughout the world… What makes the San Jose-based video conferencing company stand out is the fact that it is one of the few start-ups in this year’s initial public offering stampede that reports a profit… The global video conferencing market is estimated to reach $20 billion by 2024… Zoom has only a teeny slice of the market for now. But revenues have increased from $61 million in the year to January 2017 to $330 million last financial year. More impressively, it has managed to double revenue in the last year while earning net income of $8 million… Zoom is already used by companies such as Uber. Backers include Sequoia and a vehicle of Chinese billionaire Li Ka-shing. If things go to plan and the company issues shares priced between $28 and $32 it will achieve a valuation of $8.7 billion — more than eight times the size of its last private valuation. Its simple business plan, subscription model and roster of business customers could be a winning combination.
 
Lex.

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