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A bet of $ 100 million can seem pretty huge. That’s what Zoom (NASDAQ: ZM) invests in the activation of applications on its eponymous platform.
In this Backstage Pass video, which was broadcast September 28, 2021, Motley Fool contributors Jon Quast and Brian Withers explain why it’s not such a big bet. And why could it pay off handsomely.
Jon Quest: I’ll take Dwight Schrute’s. I don’t think he’s the real Dwight Schrute, [laughs] but I will answer this question about Zoom apps if they are or can monetize them. I don’t think they are one of them. They sure can. He says, “Why make such a huge bet when there is so much to do.”
I don’t think it’s such a big bet personally.
Here is why … I think they allocated 100 million [dollars] to fund the application development program. If you look, it’s less than two percent of their money. It’s very little that they actually put there. They just throw out the seeds and see where it grows. Now over time maybe they’ll make some gold in app development, a new use case that they never even anticipated will start to bloom and then they can step in, fund it. more and then monetize it as well. I think it’s more, just throw in some seeds and see what grows.
Brian Withers: Yes, I’m excited about what the app can become as more companies look to integrate Zoom or take elements of Zoom meetings. Asana was a great example. You can create Asana action items right after the meeting ends, link back to the Zoom webinar where you got the idea in the first place. How many times have you been on a project to get to where you are nearing the end and going through old action items and no one knows what the action item means? It would be really cool to go back to that reunion and find the place we were talking about and go, I get it. Either we tackle it or we haven’t. It’s a good little bit of history there.
Jon Quest: Another one that I mentioned was DocuSign launches an application. I was just thinking, how many times are you in a meeting where you have to sign something? Yes, what a great integration there.
Brian Withers: Yes, and I know DocuSign wanted to do video notary services so that they could complete the process virtually.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.
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