Zoom App Downloads Experience 89% Decline Since 2020 Peak

The mobile app of video communication platform Zoom, once a ubiquitous symbol of the pandemic era, has seen a dramatic decline in downloads in recent quarters. According to Stocklytics.com, Zoom mobile app downloads have plunged by 89% between Q2 2020 and Q4 2023.

Data reveals a particularly stark drop in the Asia-Pacific region, one of Zoom’s key markets.  The number of downloads in the region significantly dropped from 113.45 million in Q2 2020 to approximately 18.3 million in the last quarter of 2023.

Stocklytics Financial analyst Edith Reads commented on the data:

In 2020, Zoom was the most downloaded app on Apple devices. It reported $2.6 billion in revenue for the fiscal year ending in January 2021, a 326% rise from the prior year. The need for video conferencing tools like Zoom has waned as the world gradually adjusts to a post-pandemic reality. This is reflected in the app’s declining download numbers. While Zoom remains a significant player in the video communication landscape, its dominance appears to fade as life returns to normalcy and people return to in-person interactions.

Stocklytics Financial analyst, Edith Reads

Pandemic Star

Zoom’s ascent began in early 2020 as the global COVID-19 pandemic necessitated lockdowns and social distancing measures. With restricted physical interactions, the app became an indispensable tool for work, education, and social gatherings. 

The downloads of the Zoom mobile app skyrocketed between the first and second quarters of 2020, reflecting the widespread adoption of alternative communication channels.

The surge was particularly pronounced in North and Latin America, where downloads grew by over 1,000% in the same period. This mirrored a global trend, with Zoom and Microsoft Teams experiencing download spikes. However, Teams consistently lagged behind Zoom in terms of mobile app downloads across all regions.

End of the Zoom Boom

Zoom laid off 1,300 employees, or 15% of the workforce, at the beginning of 2023. That came after Zoom had tripled its headcount in two years.

Zoom CEO Eric Yuan stated in a statement announcing the layoffs, “We didn’t take as much time as we should have to thoroughly analyze our teams or assess if we were growing sustainably, towards the highest priorities.”

Yuan said he was “accountable for these mistakes” and vowed to reduce his salary by 98% and forgo a 2023 bonus, dropping his compensation to about $10,000, according to a US Securities and Exchange Commission filing. 

It’s important to note that while downloads have declined, the video conferencing platform still boasts a large user base built during its peak. However, the future of the app hinges on its ability to adapt to evolving user needs and compete effectively in a market increasingly saturated with video conferencing options. Whether Zoom can recapture its pandemic-era popularity or carve out a new niche in the post-pandemic world remains to be seen.