In this article, we will dig deep into the 10 most popular video calling software companies in the world. If you want to see more publishing companies in this section, click 5 Most Popular Video Calling Software Companies in the World.
In the modern era, waves of digitization have influenced almost every sector and industry. Most importantly, the communication sector has transitioned with the wider availability of the internet and tech devices. Online collaboration has become an important tool for businesses and workplaces to increase efficiency.
The global market for video calling software companies grew massively amid the global pandemic. According to Fortune Business Insights, the global market size for video calling software stands at around $6.87 billion in 2022. With a compound annual growth rate (CAGR) of 11.3%, the market size is expected to touch $14.58 billion by 2029. Another report by Grand View Research suggests that the market size will be $19.73 billion by 2030 with a CAGR of 12.5%.
One of the most significant reasons for the rise of the video calling sector is the growing scope and usability of modern technologies. In the coming years, Artificial Intelligence (AI) and the Internet of Things (IoT) will propel the growth of the industry. Moreover, businesses are enhancing their operations through video conferencing services to improve communication within the organization.
There was an exponential rise in the demand for video calling software during the pandemic. Many organizations and companies were forced to follow the work-from-home or hybrid policy. Thus, institutions had to incorporate such software to maintain work efficiency.
By 2020, the educational sector noted a massive increase in the demand for video calling software. They used it to increase the use of web and live conferencing, live streaming, and note delivery. The smart education and learning market size is expected to have a CAGR of 17.9% by 2027. With an expected market size of over $680 billion in 2027, smart education will positively influence the usage of video calling software.
On the other hand, the healthcare sector is also incorporating the use of video calling to enhance its operative model. The global healthcare video conferencing solutions market size will reach $114.46 million by 2028. It will note a CAGR of 4.9% during 2021-2028. Telemedicine solutions and urbanization will play a vital role in expanding the industry during this tenure.
According to the 2021 Global Workplace Report, about 74.8% of organizations and employers expect their hybrid employees to work from the office for about half a week. It will increase the need for video calling software and tools in such organizations. Be it remote collaboration, virtual workspace, or social interaction, video calling software continues to be in high demand in the business sector.
Photo by Gabriel Benois on Unsplash
Here are the 10 most popular video calling software companies in the world. We have ranked these articles according to their market cap and revenues. We used the market cap of public companies and the annual revenue of private companies to structure the ranking.
10. Zoho
Global Revenue for 2021: $697 million
Zoho Corporation is an India-based technological company that excels in offering web-based business tools. Zoho’s video calling software offers seamless audio and video calling features for business meetings and webinars. The company is in business since 1996. The company has observed commendable financial growth since the start of 2020. During the fiscal year of 2020, Zoho’s operating revenue saw a boost of 29%. Its total profit surged by over 55%. Even though the company is in its early years, it has fared very well among top video calling software-providing companies.
In 2021, the revenue from operations jumped a further 22.3%, touching $697 million. The company observed a 10.3% decrease in total expenses. Therefore, its profit rose by around 140%. Zoho made around $310 million in cash from operations. Mostly, Zoho generated revenue from the sale of its cloud software licenses and subscription fees.
The United States continues to be Zoho’s largest market, followed by Europe. Both regions account for 42.7% and 15.12% of their sales, respectively. With a sharp increase in the company’s headcount, Zoho’s employee benefit expenditure counts for 57% of its annual expenses. The company has cut back on its advertising and promotions to increase profit margins. However, Zoho has built an effective business model that can fetch high revenues in the coming years.
9. RingCentral, Inc. (NYSE:RNG)
Market Cap: $3.215 billion as of October 28
RingCentral, Inc. (NYSE:RNG) offers a communication solution to businesses and enterprises by integrating messaging, voice, and video features. Users can connect with up to 500 people from any device. They are also allowed to create rooms, host meetings, and enjoy HD audio and video features. Throughout the first two quarters of 2022, RingCentral, Inc. (NYSE:RNG) has progressed with fine financial results.
At the end of the second quarter of 2022, RingCentral, Inc. (NYSE:RNG) saw a rise of 28% in its revenue year over year. The revenue for the time period touched $487 million. Moreover, the revenue from subscriptions surged to $463 million. Net cash from operating activities was $51 million in the quarter.
Furthermore, the total assets of RingCentral, Inc. (NYSE:RNG) after the second quarter report are over $2.51 billion. Its gross profit stands at $328.70 million. RingCentral, Inc. (NYSE:RNG) expects annual revenue growth of 25% to 26% in the fiscal year 2022.
8. Logitech International S.A. (NASDAQ:LOGI)
Market Cap: $8.915 billion as of October 28
Logitech International S.A. (NASDAQ:LOGI) is a globally renowned communication service provider. The Swiss company offers various designs and market products to connect people and enhance their cloud experiences. According to the company’s first-quarter report for the fiscal year 2023, tough macroeconomic circumstances had a toll on its performance. Logitech video conferencing service suits mid-size and large group meetings.
7. Citrix Systems, Inc. (NASDAQ:CTXS)
Market Cap: $13.413 billion as of October 28
Citrix Systems, Inc. (NASDAQ:CTXS) is an American cloud computing company that excels in offering virtual technology and software for businesses. The company allows more innovation in businesses with IT solutions. Its video software program runs within the Citrix Virtual Apps and Desktops session. Users can opt for HDX RealTime Webcam Video Compression or for HDX Generic USB Redirection technology. It helps consumers in staying connected to any type of device.
Citrix Systems, Inc. (NASDAQ:CTXS) posted total net revenues of over $825 million in the first quarter of 2022. Its diluted EPS fell to $0.47 in the quarter. Its second-quarter total revenue was over $859 million, and operating expenses stood at over $530 million. Both SaaS and Non-SaaS subscriptions brought revenue for the firm. The software company had a diluted EPS of $0.90.
Citrix Systems, Inc. (NASDAQ:CTXS) aims to expand its virtual service offering in its future prospects. It will continue to build as a virtual desktop for remote staff and users. Citrix Systems, Inc. (NASDAQ:CTXS) has gained traction from businesses but it is competing to increase its profit margins in the coming quarters of 2022.
6. Zoom Video Communications, Inc. (NASDAQ:ZM)
Market Cap: $24.588 billion as of October 28
Zoom Video Communications, Inc. (NASDAQ:ZM) is one of the most renowned communication technology companies. The American firm is perceived as a reliable video calling platform for meetings, webinars, and online events. Since the COVID outbreak, Zoom Video Communications, Inc. (NASDAQ:ZM) has become one of the most used platforms for remote employees all around the globe.
The company posted total revenue of $4.10 billion in the fiscal year 2022 which ended on January 31, 2022. The revenue grew by around 55% year over year. Moreover, the first quarter’s total revenue for Zoom Video Communications, Inc. (NASDAQ:ZM) saw a rise of 12% year over year to reach $1.07 billion. The GAAP operating margin for this quarter was 17.4% and the non-GAAP operating margin was 37.2%.
The company expects the total revenue of the full fiscal year 2023 to be between $4.53 billion and $4.55 billion. Zoom Video Communications, Inc. (NASDAQ:ZM) is anticipating full fiscal year non-GAAP diluted EPS to be between $3.70 and $3.77.
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Disclosure: None. 10 Most Popular Video Calling Software Companies in the World is originally published on Insider Monkey.