Zoom Video Communications CEO Eric Yuan told CNBC his phone was off the hook on Monday as the company's stock popped double digits.
Shares of the cloud-based video conferencing and collaboration provider surged nearly 15% during the trading day as the coronavirus outbreak continued to impact U.S. business operations in and travel to China, forcing affected employees to work remotely. It was the biggest one-day gain for the stock since June, according to FactSet.
Many American businesses have shutdown their offices in China, where the pneumonia-like disease originated, as officials try to contain it from spreading. More than 17,000 cases have been found in that country and more than 360 there have reportedly died since it was first discovered in the city of Wuhan in December. The outbreak has spread across the globe and 11 people have been diagnosed in the U.S.
Alphabet's Google, Facebook, Apple, Microsoft and Ford Motor are a handful of companies that have instructed its China workforce to work remote, which helped spark more demand for Zoom Video stock. The company offers videoconferencing, online meetings, chat and mobile collaboration services.
"If you cannot travel ... you need to have a very reliable secure tool like Zoom," Yuan said. "That's why our usage is very, very high since the last of the month, last week. Almost everyday, that's a record usage."
Yuan, however, suggested that the increased demand is just a boost in a wave that was already in motion.
Zoom's stock was also buoyed by news of a multi-hour outage of Microsoft Teams, the software giant's competing collaboration platform. Microsoft blamed the service disruption on an expired authentication certificate in the morning and said it had fixed the problem almost 30 minutes after the stock market closed.
"The trend is more and more people are willing to work at home and also almost every business has this [type of] workforce," the founder said. "You need to have a tool like Zoom, very reliable secure service, to have a very deeper engagement across your company's employees, customers and partners."
Zoom Video, which came public last April, has a $24.2 billion market value as of Monday's close. Yuan is bullish of the company's growth prospects beyond the impact of the coronavirus on work forces.
He is expecting that video conferencing will become a $43 billion total addressable market in the coming years.
"Ultimately, almost every company, they need to have a tool like this. I think that based on IDC estimates by 2023 that's a $43 billion market," the chief executive said. "Look at our revenue last quarter. I think we're just starting."
Disclosure: Cramer's charitable trust owns shares of Alphabet, Facebook, Apple and Microsoft.