Zoom’s surging free user base dents margins as cloud costs rise

(Reuters) — Zoom warned on Monday that 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 for video conferencing for work, school, and socializing due to the COVID-19 pandemic, fell 5% after the bell, despite upbeat fourth-quarter forecasts.

Zoom operates some of its own datacenters, but it also relies on cloud computing services from outside vendors such as Amazon and Oracle, 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 Zoom’s gross profit margins down to 66.7%, below analysts’

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Xiaomi zooms past Apple in global smartphone sales in third quarter; Samsung holds pole position



a statue in front of a building: Xiaomi had a market share of 12.1 per cent, near to 4 per cent rise from last year.


© Provided by The Financial Express
Xiaomi had a market share of 12.1 per cent, near to 4 per cent rise from last year.

Xiaomi has overtaken Apple. According to Gartner, Xiaomi, the Chinese multinational electronic giant zoomed past Apple in smartphone sales in the third quarter of 2020. Xiaomi sold 44.4 million handsets this summer, a more than 11 million jump in the sale as compared to a year earlier. While Xiaomi had a market share of 12.1 per cent, near to 4 per cent rise from last year, its US counterpart too gained market share but suffered a slight dip in sales with 40.6 million units in the same period.

Among the top competitors, Samsung held the first spot with 80.8 million sales and 22 per cent market share. Huawei sales were most affected by the US-China trade wars as sales dipped from 65.8 million in 2019 to

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Zoom’s Revenue Forecast Tops Estimates Amid 2021 Concerns

Zoom’s projected slowing revenue expansion in the current period highlights investors’ concerns that 2021 won’t be as favorable for the software maker as this year, when the company gained customers forced to work and go to school remotely. Zoom’s stock has jumped sevenfold thus far in 2020, heightening questions about whether the company is overvalued. Wall Street has fawned over the company for its accelerating sales growth, but analysts have raised questions about how long it might last.

In the fiscal third quarter, Zoom said sales increased 367% to $777.2 million from a year earlier. Profit, excluding some items, was 99 cents a share. Analysts projected revenue of $693.4 million and adjusted profit of 75 cents.

Zoom’s stock has become a barometer of the pandemic economy, rising when Covid-19 lockdowns emerge and falling on good news about vaccines. Chief Executive Officer Eric Yuan has tried to diversify Zoom’s capabilities for

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Zoom’s new security feature should limit virtual meeting disruptions

  • Zoom revealed a new security feature that enables users to remove disruptive individuals from meetings.
  • We think the feature’s unveiling will help solidify Zoom’s position as an innovator in the video conferencing space.
  • Insider Intelligence publishes hundreds of insights, charts, and forecasts on the Connectivity & Tech industry with the Connectivity & Tech Briefing. You can learn more about subscribing here.

The video conferencing provider announced the launch of a new security enhancement in a recent blog post, which permits Zoom users to temporarily halt meetings to block the sharing of improper content and remove disruptive individuals from calls, per The Verge. For context, “Zoombombing” refers to the practice of bad actors infiltrating Zoom calls to display distressing or otherwise inappropriate content to meeting participants.

enterprise use of collaboration tools

Zoom revealed a new security feature that enables users to remove disruptive individuals from meetings

Insider Intelligence


With Zoom usage surging amid the pandemic,

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