Friday, 24 March, 2023

Free user base, cloud costs dents Zoom's margins

<p>Free users bills, pushed down Zoom Video Communication&#39;s gross profit margins to 66.7%, below analysts&#39; estimates of 72.1%, much below then the pre-pandemic average of around 80%. Zoom&#39;s margins would remain under pressure into 2021 as free users will continue to spike the cost. Shares of the company, which have risen about 7X this year fuelled by the meteoric rise in demand in VC for work, school or socialising due to the pandemic, fell 5% on Monday.</p>