Zoom, the category-king video conferencing system, had its moments last year at the peak of the pandemic. It saved businesses and markets. The company just  reported a quarterly revenue in excess of 1 billion. That number is a milestone for the company as that was the first time it broke the billion mark. Call it a mark for a great celebration!

But if you look deeper, that revenue is coming from double plays, which though fine, does not explain the challenge on the one oasis which has powered the evolution of Zoom. And that is a problem for the company going forward.

The problem is evident here: Zoom’s Alexa ranking has dropped from 15 to 17 and that means it has lost millions of traffic. That is indirectly revenue lost by the company: “while the 54% increase in revenue does not match the company’s growth from a year-earlier, when its “services … made it ubiquitous during the pandemic,” Zoom said it’s seeing signs of demand easing as smaller companies start to meet back in person, rather than over screens”. That is why Zoom has lost more than 16% of its value in the last five days.

“Zoom Video Communications Inc.’s quarterly revenue surpassed $1 billion for the first time in the company’s history, though the strong demand for its videoconferencing services that made it ubiquitous during the pandemic is showing signs of easing as regular activities resume.

“The roughly 54% increase in revenue, while slightly better than Wall Street expected, couldn’t match the huge growth that Zoom had in the year-earlier period, when revenue surged fourfold compared with the prior year as companies leaned more heavily into remote working.

“While the company forecast revenue of more than $1 billion again in the current quarter, its adjusted earnings guidance came in lower than expected. And company officials said small businesses and consumers were starting to spend less as opportunities for in-person meetings and gatherings expand. Zoom officials said some metrics supercharged by the pandemic had begun to normalize as customers returned to “more thoughtful, measured buying-patterns.”

“Zoom shares fell 12% in after-hours trading, after closing up 2% on Monday.

“Research firm International Data Corp. projects that collaboration applications will become a roughly $51 billion market by 2025, nearly double 2020 levels.”

President Muhammadu Buhari has approved a reshuffle in the cabinet formed on August 21, 2019; the press statements show. Yet, the changes are largely unrelated to the insecurity paralysis. You would have expected changes in the ministries of interior, defense, and related ones. Maybe, this is Act 1, Scene 1. Act 2 may be coming soon. But in six months, most ministers will start resigning as they test the waters for possible gubernatorial elections in their states.

The press statements

In the same vein, Dr. Mohammad Mahmood Abubakar, Minister of Environment, was redeployed to assume office as the Minister of Agriculture & Rural Development, while Engr. Abubakar D. Aliyu, Minister of State, Works & Housing will now be the Minister of Power.

The President said the changes were sequel to the “tradition of subjecting our projects and programs implementation to independent and critical self-review” through sector reporting during Cabinet meetings and at retreats.

He added that “these significant review steps have helped to identify and strengthen weak areas, close gaps, build cohesion and synergy in governance, manage the economy and improve the delivery of public good to Nigerians.”

Femi Adesina

Special Adviser to the President

(Media & Publicity)

September 01, 2021

The full text of the statement is reproduced below:

On Wednesday 21st August, 2019 the current Federal Executive Council was sworn-in after a rigorous retreat to bring returning and new members up to speed on the accomplishments, challenges and lessons drawn from my first term in Office and to emphasise the 9 priority areas of government for the second term.

1. Two years and some months into the second term, the tradition of subjecting our projects and programs implementation to independent and critical self-review has taken firm roots through sector Reporting during Cabinet meetings and at Retreats.

2. These significant review steps have helped to identify and strengthen weak areas, close gaps, build cohesion and synergy in governance, manage the economy and improve the delivery of public good to Nigerians.

3. I must commend this cabinet for demonstrating unparalleled resilience that helped the government to navigate the disruption to global systems and governance occasioned by the emergence of COVID-19 shortly after inauguration. The weekly Federal Executive Council meetings was not spared because the traditional mode was altered.

4. As we are all aware, change is the only factor that is constant in every human endeavour and as this administration approaches its critical phase in the second term, I have found it essential to reinvigorate this cabinet in a manner that will deepen its capacity to consolidate legacy achievements.

5. Accordingly, a few cabinet changes, marking the beginning of a continuous process, have been approved. They are as follows:

Ministers Leaving the Cabinet:

I. Mohammed Sabo Nanono, Minister of Agriculture and Rural Development, and

II. Engr. Sale Mamman, Minister of Power.

I. Dr. Mohammad Mahmood Abubakar, Minister of Environment, to assume office as the Minister of Agriculture & Rural Development;

II. Engr. Abubakar D. Aliyu, Minister of State, Works & Housing assume office as the Minister of Power.

1. In due course, substantive nominations will be made to fill the consequential vacancies in accordance with the requirements of the constitution.

2. I have personally met with the departing members to thank them for their contributions to discussions in cabinet and the invaluable services rendered to the nation. Today, effectively marks their last participation in the Federal Executive Council deliberations and I wish them the best in all future endeavours.

3. Finally, I wish to reiterate once more, that this process shall be continuous.

4. I thank you all and May God bless the Federal Republic of Nigeria.

Today began really well: a really brilliant startup in Tekedia Capital raised $millions today. I will allow the team to work on their moments. But I want to congratulate the team for the tenacity, excellence and can-do-attitude they have demonstrated.

I am a teacher and typically teachers get good gifts: I want a gift to go to that special market where they ring bells. I have got a good bell waiting and ready. Kpam kpam, bell rings. Glory!

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