Welcome to Episode 35 of the Cloud Wars Horizon Minute — featuring news and commentary hosted by Acceleration Economy analyst Tom Smith. Each episode provides insights into one or more Innovation Accelerators on the Cloud Wars Horizon. This episode touches on the financial results recently reported by Zoom.
Highlights
00:55 — Zoom Video Communications missed second quarter fiscal 2023 revenue forecasts and lowered its fiscal 2023 outlook, attributing the disappointing results to macroeconomic factors.
01:20 — This was driven by the strong U.S. dollar, weaker than expected online sales, and longer enterprise sales cycles
01:30 — Enterprise sales were 54% of total revenue, up from 46% one year ago. CFO Kelly Steckelberg said: “Cloud migration and digital transformation continue to be a priority even when – and perhaps especially when – the economy slows”
02:20 — The company also said, for the second consecutive quarter, that gross margins improved, and it attributed those gains mainly to optimizing its usage of the public cloud and increasing its co-located data centers. Overall, the results provide a mixed picture.
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