The quarterly loss was last 104.1 million dollars.
The growth of the video conferencing service Zoom continues to level off following the boom at the beginning of the pandemic. In the fourth quarter, revenue rose four percent year-on-year to $1.1 billion, the company announced on Monday following the US market closed. Overall, 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 stock initially reacted following the trading session with a jump in price of more than six percent. Zoom significantly beat market expectations with its earnings guidance for the current quarter. After Zoom was one of the winners in the corona crisis and benefited greatly from the trend towards working from home, 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 climate. About 15 percent of the workforce – around 1,300 employees – should therefore be terminated. During the pandemic, Zoom launched a hiring offensive that later turned out to be oversized. In order to save money, top management’s salaries are cut and bonuses are cancelled. CEO Eric Yuan plans to cut his salary by 98 percent this fiscal year.