The growth of the video conferencing service Zoom continues to level off after the boom at the start of the pandemic. In the fourth quarter, revenue increased 4 percent year-over-year to $1.1 billion, the company announced Monday after closing the US market.
In short, Zoom posted a quarterly loss of $104.1 million, down from a profit of $490.5 million a year ago. The annual report was nevertheless well received by investors. The share initially reacted after the trading session with a price jump of more than six percent. Zoom significantly beat market expectations with its earnings estimates for the current quarter.
After Zoom was one of the winners in the Corona crisis and benefited enormously from the home office trend, the signs have been pointing to a downturn for some time now. In February, the company announced major job cuts in light of the uncertain economic situation. About 15 percent of the workforce – about 1,300 employees – should therefore be laid off.
During the pandemic, Zoom launched a hiring offensive that later proved to be too big. To save money, top management salaries are cut and bonuses are withdrawn. CEO Eric Yuan plans to cut his salary by 98 percent this fiscal year. (sda/dpa)
Soource :Watson
I am Amelia James, a passionate journalist with a deep-rooted interest in current affairs. I have more than five years of experience in the media industry, working both as an author and editor for 24 Instant News. My main focus lies in international news, particularly regional conflicts and political issues around the world.
