Footnotes / references Financials as of January 31, 2025[update].[1]
Zoom Communications, Inc. (formerlyZoom Video Communications, Inc., commonly shortened toZoom, and stylized aszoom) is an American communications technology company primarily known for the videoconferencing applicationZoom. The company is headquartered inSan Jose, California, United States. The company was founded in 2011 byEric Yuan, a formerCisco engineer and executive. It launched its software in 2013.[2] Its software products have faced public and media scrutiny related tosecurity andprivacy issues, though the company has taken measures to address these issues.[3][4][5]
Zoom was founded byEric Yuan, a former corporate vice president forCisco Webex.[6] He left Cisco in April 2011 with 40 engineers to start a new company,[2] originally named Saasbee, Inc.[7] The company had trouble finding investors because many people thought the videotelephony market was already saturated.[7] In June 2011, the company raised $3million ofseed money from WebEx founderSubrah Iyar, formerCisco SVP and General Counsel Dan Scheinman, andventure capitalists Matt Ocko,TSVC, and Bill Tai.[7]
In May 2012, the company changed its name to Zoom, influenced byThacher Hurd's children's bookZoom City.[7] In September 2012, Zoom launched a beta version that could host conferences with up to 15 video participants.[8] In November 2012, the company signedStanford University as its first customer.[7] The service was launched in January 2013 after the company raised a $6millionSeries A round fromQualcomm Ventures,Yahoo! founderJerry Yang, WebEx founderSubrah Iyar, and formerCisco SVP and General Counsel Dan Scheinman.[9] Zoom launched version 1.0 of the program allowing the maximum number of participants per conference to be 25.[10] By the end of its first month, Zoom had 400,000 users and by May 2013 it had 1million users.[11][12]
In July 2013, Zoom established partnerships withB2B collaboration software providers, such as Redbooth (then Teambox),[13] and also created a program named Works with Zoom, which established partnerships withLogitech, Vaddio,[14] andInFocus.[15][16][17] In September 2013, the company raised $6.5million in a Series B round from Horizon Ventures, and existing investors. At that time, it had 3million daily meeting participants.[11]
In January 2017, the company raised US$100million in Series D funding fromSequoia Capital at a US$1billion valuation,[27] making it aunicorn.[28][29] In April 2017, Zoom launched a scalabletelehealth product allowing doctors to host remote consultations with patients.[30][31] In May, Zoom announced integration withPolycom's conferencing systems, enabling features such as multiple screen and device meetings, HD and wireless screen sharing, and calendar integration withMicrosoft Outlook,Google Calendar, andiCal.[32] From September 25–27, 2017, Zoom hosted Zoomtopia 2017, its first annual user conference. At this conference, Zoom announced a partnership withMeta Platforms to integrate Zoom withaugmented reality, integration with Slack andWorkplace by Facebook, and first steps towards anartificial intelligence (AI)speech recognition program.[33][34]
On April 18, 2019, the company became apublic company via aninitial public offering; since then, it has been listed onNasdaq under the ticker symbol ZM. After pricing at US$36 per share, the share price increased over 72% on the first day of trading.[35][36] Prior to the IPO,Dropbox invested $5million in Zoom.[37] The company first became profitable in 2019.[38][39][36]
In 2019, the company ranked second inGlassdoor's "Best Places to Work" survey.[40][41]
The company offered its services free toK–12 schools in many countries.[43][44]
The company joined theNasdaq-100 stock index on April 30, 2020.[45]
In May 2020, Zoom acquiredKeybase, a company specializing in end-to-end encryption.[46] In June 2020, the company hired its firstchief diversity officer, Damien Hooper-Campbell.[47]
Also in May 2020, Zoom announced plans to open new research and development centers inPittsburgh andPhoenix, with plans to hire up to 500 engineers between the two cities over the next few years.[48]
In July 2020, Zoom announced the opening of a technology center inBangalore, India, to host engineering, IT, and business operations roles.[49]
Also in July 2020, Zoom announced its firsthardware as a service products, bundling its videoconferencing software with third-party hardware by DTEN, Neat,Poly, andYealink, and running on theServiceNow platform. It began with Zoom Rooms and Zoom Phone offerings, with those services available to US customers, who can acquire hardware from Zoom for a fixed monthly cost.[50][51] On July 15, 2020, the company announced Zoom for Home, a line of products for home use, designed forremote workers. The first product, Zoom for Home - DTEN ME, includes software by Zoom and hardware by DTEN. It consists of a 27-inch screen with three wide-angle cameras and eight microphones, with Zoom software preloaded on the device. It became available in August 2020.[52][53]
In August 2020, Zoom opened a data center inSingapore.[54]
In September 2021, Zoom's attempt to acquire contact center company Five9 for $14.7billion was turned down by Five9's shareholders.[56][57]
In February 2023, Zoom announced that it would cut its workforce by 15 percent, or about 1,300 employees, citing the unsustainable growth following the rapid scaling to manage the demand of the pandemic.[58] In December that year, Zoom dropped out of the Nasdaq-100.[59]
In April 2023, Zoom acquiredWorkvivo to extend the Zoom platform.[60]
In November 2024, Zoom Video Communications, Inc. rebranded as Zoom Communications, Inc., dropping 'Video' from its name, to reflect its shift in focus from video conferencing to an "AI-first work platform".[61]
In November 2025, it was announced Zoom had acquired the AI-powered hiring platform, BrightHire for an undisclosed amount.[62]
Zoom has been criticized for "security lapses and poor design choices" that have resulted in heightened scrutiny of its software.[63][5] The company has also been criticized for its privacy and corporate data sharing policies.[64][65][66] Security researchers and reporters have criticized the company for its lack of transparency and poorencryption practices. Zoom initially claimed to use "end-to-end encryption" in its marketing materials,[67] but later clarified it meant "from Zoom end point to Zoom end point" (meaning effectively between Zoom servers and Zoom clients), whichThe Intercept described as misleading and "dishonest".[68]
In March 2020,New York State Attorney GeneralLetitia James launched an inquiry into Zoom's privacy and security practices;[69] the inquiry was closed on May 7, 2020, with Zoom not admitting wrongdoing, but agreeing to take added security measures.[70] In the same month, a class-action lawsuit against Zoom was filed in theUnited States District Court for the Northern District of California. According to the lawsuit, Zoom violated the privacy of its users by sharing personal data withFacebook,Google, andLinkedIn, did not prevent hackers from disrupting Zoom sessions, and erroneously claimed to offer end-to-end encryption on Zoom sessions. Zoom settled this lawsuit for $86 million.[71]
On April 1, 2020, Zoom announced a 90-day freeze on releasing new features, to focus on fixing privacy and security issues on Zoom. On July 1, 2020, Yuan wrote a blog post detailing efforts taken by the company to address security and privacy concerns, stating that they released 100 new safety features over the 90-day period. Those efforts include end-to-end encryption for all users, turning on meeting passwords by default, giving users the ability to choose which data centers calls are routed from, consulting with security experts, forming a CISO council, an improved bug bounty program, and working with third parties to help test security. Yuan also stated that Zoom would be releasing a transparency report later in 2020.[72][73]
In May 2020, theFederal Trade Commission (FTC) announced that it was looking into Zoom's privacy practices.[74] The FTC alleged that since at least 2016, "Zoom maintained the cryptographic keys that could allow Zoom to access the content of its customers' meetings, and secured its Zoom Meetings, in part, with a lower level of encryption than promised."[75] On November 9, 2020, a settlement was reached, requiring the company to implement additional security measures.[76]
On December 19, 2020, a former Zoom executive was charged by theU.S. Department of Justice with conspiracy to commit interstate harassment and unlawful conspiracy to transfer a means of identification. The charges are related to the alleged disruptions to video meetings commemorating the1989 Tiananmen Square protests and massacre.[78] Federal prosecutors inBrooklyn, New York, said that Xinjiang "Julien" Jin, then 39, was aSan Jose, California–based company's main liaison with intelligence and law enforcement agencies of China. Zoom later acknowledged it was the company in question. It said in a statement that it had terminated Jin's employment for violating company policies and was cooperating with the prosecutors. Jin is not in custody because he is based in China.[79][80]
In February 2021, Zoom announced a new feature called Kiosk Mode, which will allow people visiting offices to check in with a receptionist virtually on a kiosk, without any physical contact.[81]
In March 2021, Zoom announced that from August 23, 2021, Zoom will stop selling new and upgraded products directly to customers in mainland China.[82][83]
In 2021, Zoom agreed to pay $85 million to settle a class action lawsuit over the company's alleged sharing of data with Facebook, Linkedin, and Google.[84]
In April 2020,Citizen Lab warned that having much of Zoom's research and development in China could "open up Zoom to pressure from Chinese authorities."[85] In June 2020, Zoom was criticized for closing multiple accounts of U.S. and Hong Kong–based groups, including that ofZhou Fengsuo and two other human rights activists, who were commemorating the1989 Tiananmen Square protests and massacre. The accounts were later re-opened, with the company stating that in the future it "will have a new process for handling similar situations."[47] Zoom responded that it has to "comply with local laws," even "the laws of governments opposed to free speech."[86][87][88] Zoom subsequently admitted to shutting down activist accounts at the request of the Chinese government.[89] In response, a bi-partisan group of U.S. senators requested clarification of the incident from the company.[90] Partially in response to criticisms of its blocking of the activists accounts as well as expressions of concern by the United States Justice Department, Zoom moved to cease direct sale of its product in mainland China in late August 2020.[91]
In September 2020, following protests and legal concerns raised by the Jewish coalition group #EndJewHatred, Zoom preventedSan Francisco State University from using its video conferencing software to host former Palestinian militant and hijackerLeila Khaled, a member of thePopular Front for the Liberation of Palestine (PFLP). In justifying its decision, Zoom cited the PFLP's designation as a terrorist organization by the United States Government and its efforts to comply with U.S. export control, sanctions, and anti-terrorism laws.Facebook andYouTube also joined Zoom in denying their platforms to the conference organizers. ProfessorRabab Ibrahim Abdulhadi, one of the conference organizers, criticized Zoom, Google's YouTube and Facebook for censoring Palestinian voices.[92][93][94][95]
^O'Flaherty, Kate (March 25, 2020)."Zoom's A Lifeline During COVID-19: This Is Why It's Also A Privacy Risk".Forbes.Archived from the original on March 26, 2020. RetrievedMarch 27, 2020.collects and stores personal data and shares it with third parties such as advertisers. But Zoom's policy also covers what it labels "customer content," or "the content contained in cloud recordings, and instant messages, files, whiteboards ... shared while using the service." This includes videos, transcripts that can be generated automatically, documents shared on screen, and the names of everyone on a call.
^Lee, Micah; Grauer, Yael (March 31, 2020)."Zoom Meetings Aren't End-to-End Encrypted, Despite Misleading Marketing".The Intercept.Archived from the original on April 2, 2020. RetrievedMarch 31, 2020.Currently, it is not possible to enable E2E encryption for Zoom video meetings. (...) When we use the phrase 'End to End' in our other literature, it is in reference to the connection being encrypted from Zoom end point to Zoom end point.
^Xiao, Eva (June 11, 2020)."Zoom Catches Heat for Shutting Down China-Focused Rights Group's Account".The Wall Street Journal.Archived from the original on June 12, 2020. RetrievedJune 11, 2020.Zoom Communications Inc. ZM 7.59% drew fresh questions over its relationship with the Chinese government when it shut down a U.S. human-rights organization's account shortly after its videoconference on the 1989 Tiananmen Square massacre [...] Zoom defended the closure, saying that it had to comply with local laws
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