Zoom Video Communications Inc warned on Monday its gross margins would remain under pressure going into 2021 as the surging number of free users of its video conferencing service makes it hard to offset a spike in costs to maintain its growth.
Shares of the company, which have risen about sevenfold this year fueled by the meteoric rise in demand in video conferencing for work, school or socializing due to the COVID-19 pandemic, fell 5% after the bell, despite upbeat fourth-quarter forecasts.
Zoom operates some of its own data centers, but it also relies on cloud computing services from outside vendors such as Amazon.com and Oracle Corp, meaning it must bear costs for free users.
Those bills, driven in part by a jump in free users in the third quarter as millions of students and teachers started new school semesters, pushed down Zoom’s gross profit margins to 66.7%, below analysts’ estimates of 72.1%, and its pre-pandemic average of around 80%.
“We expect gross margins to be consistent with Q3 into the next fiscal year before starting to improve towards our long-term target margin,” Chief Financial Officer Kelly Steckelberg said.
Zoom said it had 433,700 customers with more than 10 employees, a 485% increase from the year before but only a 17% increase from the fiscal second quarter, compared to the 40% growth rate between the company’s first and second quarters. Slower sales to corporate customers could mean Zoom is losing out to established tech giants, said Ryan Koontz, analyst at Rosenblatt Securities.
“Cisco and Microsoft are very entrenched in the larger enterprise segment, so Zoom has a much harder job selling against them than they do in the small business space which is largely unpenetrated,” he said.
It forecast adjusted earnings of 77 cents to 79 cents per share, compared to estimates of 66 cents.
Revenue for the third-quarter ended Oct. 31 surged 367% to $777.2 million, beating analysts’ average estimate of about $694 million.
By Hindustan Times
Pingback: spytostyle.com
Pingback: future university
Pingback: جامعة المستقبل
Pingback: fue
Pingback: جامعة المستقبل
Pingback: fue
Pingback: future university
Pingback: Arie Baisch
Pingback: future university
Pingback: 5 Best and Cheap WordPress Hosting for your Website
Pingback: future university
Pingback: Natraj Pencil Packing Job Work From Home
Pingback: fue
Pingback: future university
Pingback: future university
Pingback: leg extension machine
Pingback: acr3
Pingback: leg curl prone
Pingback: chat-ave
Pingback: reputation defenders
Pingback: future university
Pingback: future university egypt
Pingback: future university egypt
Pingback: fue
Pingback: Lila Lovely Thanksgiving
Pingback: premium-domain-names
Pingback: Click Here
Pingback: Click Here
Pingback: Click Here
Pingback: Click Here
Pingback: Click Here
Pingback: Click Here
Pingback: Click Here
Pingback: Reputation Defenders
Pingback: Click Here
Pingback: Click Here
Pingback: Click Here
Pingback: Click Here
Pingback: Click Here
Pingback: Click Here
Pingback: Click Here
Pingback: grand rapids dentist
Pingback: Click Here
Pingback: https://gquery.org/
Pingback: Click Here
Pingback: Click Here
Pingback: Click Here
Pingback: earn karo
Pingback: Click Here
Pingback: Click Here
Pingback: Click Here
Pingback: Click Here
Pingback: Click Here
Pingback: Click Here
Pingback: Click Here
Pingback: Click Here
Pingback: Click Here
Pingback: Click Here
Pingback: 하이 롤러 카지노
Pingback: domain
Pingback: domain-names
Pingback: how to get vc funding
Pingback: Google reviews
Pingback: reputation defenders
Pingback: 2023 Books
Pingback: IRA Empire
Pingback: best site for football betting
Pingback: Chirurgiens esthétique Tunisie
Pingback: Chirurgie Tunisie
Pingback: Chirurgie esthétique Tunisie
Pingback: National Chi Nan University
Pingback: Dr Hanan Khalifa
Pingback: Scimago Institutions Rankings
Pingback: دورات ادارة الاعمال بمصر
Pingback: Academic Year
Pingback: وسائل الإعلام السياسية
Pingback: Distinguished graduate
Pingback: كلمة عميد كلية الصيدلة بجامعة المستقبل
Pingback: Dental Courses
Pingback: Teeth whitening
Pingback: كليات هندسة في التجمع الخامس
Pingback: registration procedures
Pingback: Computer Science Programs
Pingback: Course Add/Drop Policy
Pingback: Cloud Computing
Pingback: High-Demand Computer Science Jobs
Pingback: best university in egypt
Pingback: smart university
Pingback: educational services
Pingback: charity
Pingback: regional centers for software
Pingback: دورات زراعة الأسنان
Pingback: علم الأحياء الدقيقة والمناعة
Pingback: MBA curriculum in Egypt
Pingback: Pharmaceutics and Pharmaceutical Technology
Pingback: best university egypt
Pingback: Graduate programs at future university
Pingback: International student admissions to future university
Pingback: Graduate programs at future university
Pingback: دورات تدريبية في طب الأسنان
Pingback: Pharmacy's Diploma
Pingback: https://www.kooky.domains/post/how-do-i-create-a-web3-website
Pingback: Values and ethics
Pingback: Faculty of economics & political science
Pingback: Faculty of Economics
Pingback: Interdisciplinary program
Pingback: اقتصاد
Pingback: Healthcare products
Pingback: معايير الرعاية الصحية
Pingback: Faculty Regulations
Pingback: Faculty of Oral and Dental Medicine Contact
Pingback: the strategy of the College of Engineering in all areas of academic work
Pingback: Location Faculty of Engineering and tecnology
Pingback: best university in egypt
Pingback: Biochemistry
Pingback: Medicinal Chemistry
Pingback: Maillot de football
Pingback: Maillot de football
Pingback: Maillot de football
Pingback: Maillot de football
Pingback: Maillot de football
Pingback: Maillot de football
Pingback: Maillot de football
Pingback: Maillot de football
Pingback: SEOSolutionVIP Fiverr
Pingback: SEOSolutionVIP Fiverr
Pingback: SEOSolutionVIP Fiverr
Pingback: pannelli luminosi led
Pingback: binario luci led
Pingback: squat avec barre
Pingback: cortexi
Pingback: Fiverr Earn
Pingback: Fiverr Earn
Pingback: Fiverr Earn
Pingback: Fiverr Earn
Pingback: Fiverr Earn
Pingback: Introduzione al profilo led cartongesso
Pingback: cara daftar sdn bhd murah online ssm
Pingback: Freight Broker
Pingback: hair loss treatment
Pingback: cortexi
Pingback: fiverrearn.com
Pingback: clima para mañana
Pingback: fiverrearn.com
Pingback: puppies french bulldog
Pingback: fiverrearn.com
Pingback: french bulldog california
Pingback: isla mujeres
Pingback: Experienced Piano Movers
Pingback: Specialized Piano Handling
Pingback: Private universities in Egypt
Pingback: Best university in Egypt
Pingback: Best university in Egypt
Pingback: isla mujeres golf cart rental
Pingback: yacht rental cancun
Pingback: micro frenchie for sale
Pingback: french bulldog puppies
Pingback: french bulldog size
Pingback: isabella merle french bulldog
Pingback: vietnam restaurants
Pingback: frenchie puppies for sale in texas
Pingback: Custom made bracelet
Pingback: smartphones
Pingback: future university
Pingback: future university
Pingback: future university
Pingback: future university
Pingback: french bulldogs in houston texas
Pingback: cancun golf cart rental
Pingback: fue
Pingback: Piano tuning services
Pingback: Furniture assembly
Pingback: Coach
Pingback: Pupuk Organik terpercaya dan terbaik hanya melalui pupukanorganik.com
Pingback: partners
Pingback: live sex cams
Pingback: french bulldog texas
Pingback: Private University Yemen
Pingback: Scientific Research
Pingback: Kuliah Termurah
Pingback: FiverrEarn
Pingback: cheap sex cams
Pingback: live sex cams
Pingback: OnOverseas.Com
Pingback: 늑대닷컴
Pingback: Slot online terpercaya
Pingback: freelance web designer Singapore
Pingback: 918kiss
Pingback: หวย24
Pingback: Korean beauty
Pingback: pg slot
Pingback: aplikasi admin slot pragmatic
Pingback: 44-40 ammo
Pingback: pinkcollar jobs
Pingback: expertini
Pingback: dallas jobs