Zoom: The sound of web chat biz's annual profits nosediving

Zoom, poster child of pandemic web comms, is experiencing the same readjustment as other online tech providers whose businesses ballooned in recent years, but is still managing to pick up more paying customers. For its Q4 of fiscal 2023 ended January 31, Zoom reported revenue of $1.1178 billion, up 4 percent year-on-year. For …

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Taxation profits?

It might be worth looking at the history of Donald Trump who, many years ago ( and voting democratic in those days) described reporting taxation responses to "losses" as a way to make under the table profits. A few methods that worked very well for him back then.

[cornetman]

I still find it a bit weird for a company to say they had $1.1178 billion turnover yet feel the need to cut 15% of its staff, even while also admitting that they are increasing their user base. There's something really wrong there unless I have misunderstood the situation.

[VoiceOfTruth]

Turnover means bugger all. Profit is what counts. A cup cake shop with a turnover of $100,000 a year making $50 profit is financially better off than Zoom:

-> For its Q4, Zoom posted a net loss of $104 million versus a profit of $490.5 million a year earlier.

[cornetman]

Point well made. I wonder what on earth they could be doing wrong to be making a loss on such an enormous turnover?

[gerryg]

Randomly

This reminds me of a small company making omelette pans. Following a recommendation by Delia Smith they had to decide to forego the opportunity of a ramp in demand or expand production. Having chose the latter route once the Waitrose caravanserai moved on, they had an unsupportable cost base and they went out of business.

I thought that Zoom responded admirably to COVID but now have the curse of too much capacity. In so far as they care, I hope they survive

[DougMac]

Re: Randomly

Zoom used to be king of the hill, but Teams being bundled into O365 subscriptions is eating their lunch.

Just like Zoom beat up Webex. Zoom will soon be in Webex's spot.

Its too bad, because I have way more issues on Teams than on Zoom.