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Zoom Is Soaring – But For How Long?

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Zoom

As social distancing becomes the order of the day as part of efforts to minimize the spread of coronavirus pandemic, people are seeking ways to keep their businesses, friendship and family life intact. Online tools have offered platforms of interactions that guarantee wide distances between people and yet fulfilling meetings, bonding and association.

Among all the apps offering teleconference related services, Zoom has become a popular choice. As more people seek virtual alternatives to their deprived freedom to meet and interact, Zoom has become a darling option because it gives users better choices than other apps offering virtual conferencing services.

Though Apple’s Facetime is popular, Zoom is currently ranking above it in the iOS store, according to the data from analytic company App Annie. It has been gaining more users at the wake of the outbreak of coronavirus and that has shot its market value up. The stock sells for 58 times revenue, compared to a price-to-sales ratio of 8 for Microsoft, and has been gaining since February while other stocks are plummeting.

In 2020, Zoom Video Communication has soared over 85%, and has become a top choice for investors who are looking for a safe haven from the coronavirus storm. In February, the teleconference company’s stock upped 45% to maintain stable growth while other stocks plunged. On Thursday last week, the ZM stock went up another 7% to close regular trading at $125.00 a share.

The company’s Q4 revenue jumped 78% with 2019 sales up 88% to $622.7 million. According to data published by Nasdaq, Zoom’s adjusted quarterly earnings of $0.15 a share trampled the $0.08 estimated by the market, and has now blown away Nasdaq projection by an average of 340% in the trailing four quarters.

Also, its full fiscal year operating cash flow skyrocketed close to 200% to $151.9 million, as its client base expands. Zoom ended the year 2019, with about 82,000 clients and with more than 10 employees, a 61% increase from 2018. The company said 641 customers contributed more than $100,000 in trailing 12 months revenue which marked an 86% surge.

The unprecedented growth has come as a result of many using Zoom for weddings, bar mitzvahs and mediation sessions. As schools closed, teachers and students turned to Zoom for classes and so did many others who needed to stay in business. Many others use it to make parties and virtually stay in touch with family and friends.

But Zoom won people’s hearts for some peculiar reasons that many other players in the teleconference business can’t give.

“The usability and the reliability of Zoom is what has led to this incredible adoption, combined with honesty, the generosity of Eric and his willingness to open it up especially to schools,” Zoom CFO Kelly Steckelberg told CNBC.

Zoom founder and CEO Eric Yuan received a lot of applause for altering the original design that gives free service only to 100 participants for 40 minutes. Schools and organizations have cashed in on the adjustment that has allowed thousands of people to hook into conferences running far beyond 40 minutes free of charge. The gesture was seen as part of efforts by the company to help people in the face of COVID-19, pandemic, and has spurred thousands of users to download the app. Over 90% downloads between February and March.

Moreover, Zoom is available for Android and laptops, unlike its rival, Facetime that is exclusive to iOS and available only to iPhone users. Zoom has other features that include the ability to upload pictures or videos to create a virtual background. That feature has been notably fun and enticing that other companies like Microsoft said they are going to copy it in its Teams service.

However, as Zoom keeps soaring even in the face of fierce competition with popular names like GoToMeeting and Skype as well as Google Hangouts and Microsoft Teams, many are still worried that its pace may be forced to slow down at the end of the coronavirus pandemic.

But Nasdaq estimated that Zoom’s 2021 full-year fiscal revenue will hit between $905 million to $915.o million, which overrides the pre-earning estimate of $854.6 million. The high-end would represent 47% growth from 2020.

Zoom’s video is also expected to crush the current estimate of $0.27 per share to hit between $0.42 and $0.45 per share, and would mark a 29% jump from 2020, on the high side.

Stifel analysts told clients: “The global coronavirus epidemic will undoubtedly drive awareness and adoption of the company’s video conferencing platform, and we expect this environment to further enable the company to post industry-leading growth rates.”

Before now, climate advocates and those who see automobile emission as an environmental threat and have tried to cut their movement by holding meetings and conferences online, have been instrumental to Zoom’s market performance, as the company has established an edge over others and manages to keep all those who get on board. It is believed that post-coronavirus will yield the same result; Zoom is likely going to introduce more enticements to help its lovers to stay in love.

Covid-19 – An Interview with Abideen Olasupo, Team Lead, KnowCovid-19 Nigeria

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Editor’s Notes: The thoughts in this piece emerged from the interview conducted with Abideen Olasupo, Co-Founder and Team Lead, KnowCovid-19 Nigeria. KnowCovid-19 is researching and analysing issues and needs on the virus and disseminate the outcomes to Nigerians and other nationals throughout the world using digital content distribution.

Tekedia: Covid-19 is not new to people and businesses since December 2019. Various efforts have been taken and still being initiated to contain the spread of the virus. What is your view on the efforts thus far?

Abideen Olasupo: While I commend all governments for fighting the demons that has been keeping us all at home. I must emphasise that some leaders started very late. If they had taken proactive steps earlier and face the virus like a war; maybe the casualties would have been lesser. We can do better by making testing kits readily available for a whole lot of people to get tested. Maintaining social distancing and locking down states alone won’t solve the problem.

As a social entrepreneur, how would you describe the social measures of the Nigerian government at federal and state level?

Sincerely, it may be too early to comment on this. While almost all states announcing lock down (full and partial) already announced palliatives, the implementation of such palliatives will really go a long way in achieving the goals. Will it get to the grassroots, where it is mostly needed? Will People with Disability get them? Will it not be politicized? Will an individual not take more than what he or she should take. While the pandemic requires serious attention, one would have expected the government to kickstart palliatives since last week before declaring total lockdown.

For the past few weeks, you and other groups of Nigerians have been researching and disseminating data driven information on the virus. What prompts this? What do you intend to gain?

The fight against COVID-19 isn’t just a fight against the pandemic, but also a war against what has been described as an ‘infodemic’, that is, the spread of fake news and disinformation about the virus. There are several anxiety-triggering, fear-inducing and scary information being circulated on and off social media platforms. Despite over 80,000 recoveries being recorded globally, there is more focus on the deaths, and the patients health practitioners are unable to save. There is little information about medical testing and successes recorded so far, some of which are China closing its last COVID-19 hospitals, and global recoveries. Knowcovid19.ng(soon to be launched officially later today) is solving the problem of fake information and misinformation around Covid19, inaccessibility of information by people at the grassroots, and ensuring timely conveyance of information, awareness and safety precaution, test centre and clinic location, reportage of case, matrix mapping and contact tracing using data, technology and infographics.

Would you say global leaders and other concerned stakeholders need big data to fight the spread of the virus amidst spread of misinformation about the virus?

Capital YES. We need to fight this global war with every available tool. Big data, machine learning, and artificial intelligence must be deployed in the global effort against this virus. Researchers around the world are using machine learning to develop models that simulate and predict the spread of the virus in an attempt to identify patterns that might reveal the weaknesses and dangers of this pandemic. Vaccine development is now the hottest and most critical task worldwide. Bioinformatic tools are boosting the efficiency of what may well be the fastest vaccine development process in history. Without collaborative tools and big data, this would be an impossible task. Epidemiologists in South Korea, China, and Singapore are using real-time tracking tools to better understand the virus and slow the spread of disease. We are also mapping, tracking, reporting cases in Nigeria through Knowcovid19.

Redesigning and producing impactful contents require funds, how are you getting funds for daily operations?

Sincerely, I have been self-funding since last week. We were lucky to get committed volunteers who are passionate to join the initiative and commit their time, money, research skills and knowledge, Internet and alternative power supply to get things done. Our website is still pending owing to funding. We have not started work on our Mobile App. We need funding to give relief materials and as well support our volunteers research work. We are calling on individuals and corporate organisations to support us.

Lagos Temporary Food Market: Equal Distribution Equates Inclusiveness

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As Lagos State Government continues execution of its strategies and programmes for the effective containment of COVID-19, Nigerians have called on the state governor, Mr Sanwo-Olu Babajide and other government officials in charge of the temporary food market distribution to ensure equal distribution of the market in the state.

This was gleaned from the analysis of 25 people’s views expressed on the programme by Knowcovid-19 Nigeria, a group of volunteers working on analysis and presentation of issues and needs on the virus using a data-driven approach. 

It would be recalled that Governor Babajide Sanwo-Olu directed that some school grounds in the state should be used as temporary markets as part of measures to curb the spread of Coronavirus (COVID-19). According to Prince Gbolahan Lawal, the Commissioner for Agriculture, “the markets were set up to provide Lagosians access to food supplies during this restriction period in order to prevent panic buying after the directive that all markets and stores trading in non-essential commodities be closed.” 

Lawal outlined the Local Governments where the food and agricultural markets would be set up; Mushin, Alimosho, Surulere, Ikeja, Apapa, Lagos Mainland, Eti-Osa, Surulere and Ifako-Ijaiye Local Governments.

According to him, the schools identified for food and agricultural markets are – Bishop Aggrey Primary School, Ilasamaja; Ajenifuja Primary School, Ilupeju, Mushin; Papa Ajao Primary School, Ladipo Street, Mushin; Akin Ogun Primary School, Mosan; Meiran Community Primary School, Meiran; and Animashaun Primary School, Ijeshatedo off Omilani Street, Surulere.

Others are Ikeja Primary School, Ikeja; Opebi Primary School, Opebi, Ikeja; Anglican Primary School, Marine Beach, Apapa; St. Jude’s Primary School, Ebute- Metta; St. George’s Boys Primary School, Falomo; Community Grammar School, Adelabu, Surulere; Obele Secondary School, Adelabu, Surulere; Fagba Junior Grammar School, Ifako-Ijaiye; and Stadium High School, Ifako.

Reacting to the programme, one of the people who commented on the state government’s official Facebook page notes that “densely populated areas like Ejigbo, Ikotun, Ijegun, Igando, Idimu and Egbeda should be a priority.” Another follower asked What happens to Egbe Idimu if you can’t cover all the areas you don’t need to announce the Market.” He notes further that the market should be located in two schools in  each Local Council Development Authority. 

In a speech after President Muhammadu Buhari’s national broadcast, Governor Babajide Sanwo-Olu stresses his government’s commitment to address “the hitches noticed in the distribution of the food package so as to make the exercise healthier and more dignifying.”

The Capitalist, A Talented Magician

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He was a magician – he made tons of money for investors through dividends and share buyback. His total yearly compensation was excess of $20 million. This man believed that some of his staff could just be fine with minimum wage, but he deserved all the tonnage of digital benjamins that were hitting his bank account. 

Then Coronavirus hit, unfortunately, and suddenly, this magician is asking for a bailout from the government. Yes, the man who had expected working mothers of three to support their lives on minimum wage, now thinks that the American people should save the company he leads! Interestingly, his wish is on track; the $2 trillion stimulus package makes it a near-certainty.

You see the irony?The company is on its own minimum now, but instead of him dealing with it the way minimum wage workers have been struggling-out over ages, this capitalist believes that the government must come and help the company.

Covid-19 is bad – no debate on that. But our world must not forget in a hurry what is happening with these overpaid human magicians who think they are special, and must be paid with all the cash truckloads in the company, even when their workers are on government food stamps.

It is painful that a man who is paid excess of $22 million does not have the talent to save his company, rain or sunshine. I get it – getting the government involved is part of his magical leverageable capabilities! Yet, that was a bailout – and I am hoping he bails out his minimum wage workers when sunshine returns, post Covid-19.

Just imagine if he had gone with $7 million, on peacetime, giving his comrades opportunities to rise further at better pay. But no way, the capitalist magicians cannot be traded below market value!

Why do we privatize success but quickly socialize (nationalize) problems when bad things happen? Of course, this is not to say that Covid-19 is not very unfortunate; I support bailouts to companies. Yet, the world needs to use this vehicle to bring common sense on compensations and the disparities between CEOs and low-level workers.

Nigeria: Karma is here now. All facilitated by Covid-19.

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I believe in God, I believe there is God and I equally believe that despite all our knowledge and capacity for great inventions, there is a whole lot more about the universe that we don’t know and will never know.

So why do men carry the aura of God when we have so many limitations in a universe that existed before we were even aware of its existence?

Why is there so much evil and injustice in the world perpetrated by men and nations with superior advantage?

And so Coronavirus came to give us a little wake-up call.

A check at the Christian bible, in the book of Genesis 6 verse 5 and 6….it said something very interesting about the human nature:

5 – The Lord observed the extent of human wickedness on the earth, and he saw that everything they thought or imagined was consistently and totally evil. 6 – So the Lord was sorry he had ever made them and put them on the earth. It broke his heart.

Imagine that the Creator of the universe himself was heartbroken at the sight of the terrible acts of men.

Coronavirus code named Covid-19 is currently ravaging the world. It is so bad that in a few weeks of spreading fast around the world, the International Monetary Fund (IMF) has declared that the world is now in recession.

Economic activities around the world have come to a grinding halt, businesses have shut down completely, hundreds of thousands of jobs are being lost all around the world and there are countries currently witnessing a complete lock-down.

Can you imagine that? A little jog around town is now a crime in some countries. It is now a complete stay-at-home galore.

But there is something honorable and admirable about the nature of Covid-19. The kind of nature that would have delighted God to find in us, the kind of nature that would have made the planet Earth a great place to dwell for every living being.

It is the egalitarian nature of the virus.

The virus has displayed perfect fairness in its modus operandi.

It has no respect for gender, no respect for title or class, no respect for religious beliefs, no respect for colour of skin, no respect for class or hierarchy, the virus is not concerned with whether a country is classified as developed, developing or underdeveloped – it just deals with everyone and every country that come its way.

Suddenly, the might and power of the United States of America has been demystified by an invisible micro-organism. Within a period of 3 weeks, the number of infected has risen to more than 130,000 and more than 2,000 Americans have died from the virus. The excellent economic achievements of the ever boastful Donald Trump for more than 3 years were completely wiped out in a matter of days.

Now I see a slump on Trump’s shoulders whenever he is addressing the American people. Covid19 really trumped him.

Italy, having one of the best healthcare systems in the world has been especially beaten hard by the virus. More than 10,000 people have now died from the disease and are still counting.

Developed countries like Germany and the United Kingdom with excellent healthcare systems and role models for many countries of the world are currently in disarray over the unrelenting Covid-19 attacks. Thousands of Germans and Britons have contacted the virus and the figures keep rising every day.

The Prime Minister of the UK, Boris Johnson, has contacted the virus and Germany’s Minister for Finance of over 10 years, Mr Thomas Schaefer, has committed suicide due to worry over how to cope with the economic fallout from the coronavirus.

Coronavirus is causing pains across the world

This Covid-19 has no respect at all.

My country, Nigeria, is currently under the siege of the coronavirus like most countries of the world. Here too, the virus has been consistent with its egalitarian nature.

The Chief of Staff to the President, Abba Kyari, and some staff within the Presidency have tested positive to the virus. Nigerian state Governors are testing positive to the virus, top legislative figures have tested positive to the virus. Influential, wealthy and powerful figures are testing positive to the virus.

Even the Nigerian medical Doctors that the infected look up to for treatment in this pandemic are testing positive to the virus as unfolding at University College Hospital, Ibadan.

But the Nigerian case is much more peculiar.

The healthcare system is so horrible that Doctors went on strike in the middle of a pandemic. Billions of dollars that could have worked miracles in the healthcare sector were lavished and diverted to private pockets.

Now the people responsible for the rot in the healthcare sector look up to that sector for salvation.

Education has been grossly underfunded for decades and has led to the emergence of poorly educated and uneducated millions of Nigerians. That lack of informed education is the reason youths in Katsina burnt down a police station all because the police were trying to protect them from contacting the virus through religious congregations.

People are being asked to stay put at home till further notice amidst impending lock-down but there is no power supply to make staying at home tolerable. Billions of dollars invested in the power sector for decades were recklessly siphoned by greedy and evil minded people in positions of power.

Crude oil now sells like palm oil in the international market and it leaves much to wonder how the vultures in the Nigerian government used to feeding on sumptuous oil money will cope with the new unfavorable economic and financial reality.

Karma is here now. All facilitated by Covid-19.

The rich, powerful and unconcerned citizens of Nigeria will in one way or the other reap the harvest of what they have sown for decades. Even the innocent will partake somehow, unfortunately.

The number of infected people worldwide is now more than 700,000 while the number of deaths is over 33,000 from the coronavirus.

Hopefully, the world will discover a vaccine or a cure for the virus soon enough. That appears like the only way the world will get some respite from the coronavirus siege.

But for now, the lessons are ringing loud – that no matter how big or small we are, no matter how powerful or insignificant we are, no matter the stockpile of sophisticated weapons and scientific/technological knowledge accumulation, we are nothing compared to the force of nature.

In crisis like this, the seed of love we have sown through good governance and charity to one another is what can give us hope – nothing else will.

The world will learn that lesson well. Nigeria, especially, will learn that lesson forcefully.