Zoom posts $104 million loss in Q4, but outlook exceeds expectations

Video conferencing service Zoom continues to see increasing difficulties following the boost it experienced during the coronavirus pandemic, with profit in the red in the fourth quarter, according to results released on Monday.

Total revenue for the fourth quarter that ended on January 31, 2023, increased by 4% to $1.1 billion compared to the same period the year prior, Zoom said.

However, the company was a far cry from the $490.5 million in profits posted in the last quarter a year ago, recording a net loss of $104.1 million for the fourth quarter.

But Zoom still exceeded market expectations with its profit outlook for the current fiscal quarter, causing shares to jump by more than 6% after trading hours.

The video conferencing platform was among the companies benefiting from the coronavirus pandemic. Zoom was originally developed for corporate use but suddenly became a mass market product during the coronavirus pandemic as stay-at-home orders came into force across the globe.

Companies turned to the software to keep home offices running and private consumers used it for a variety of purposes as well including family video calls and yoga classes. The explosive growth the firm saw began levelling off as coronavirus restrictions were wound down.

Earlier this month, Zoom announced it would slash staff by 15% - or some 1,300 of its workers - in light of the uncertain economic situation.

In order to cut costs, the company also announced it would reduce salaries and axe bonuses for top executives.

Kaynak: DPA