Zoom Will Need to Start Phoning It In

In the space of just a few months,

Zoom Video Communications

has become a household name—even a verb. But is that all the company is?

That question hangs over what has been the tech industry’s most remarkable success story in recent years. Born of a desire to improve on clunky workplace collaboration tools like WebEx, Zoom found its business upended by the pandemic in the best possible way. For millions confined to their homes, Zoom was suddenly the only way to have face-to-face conversations with people not sharing the same dwelling.

That has resulted in astounding business growth. Zoom was generating a little over $600 million in annual revenue before the pandemic struck. For the trailing 12-month period ended in July, that had more than doubled to $1.3 billion. For Zoom’s fiscal year ending in January, Wall Street projects revenue of nearly $2.4 billion.

But the stock’s sky-high multiple of

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