How Zoom's Mission Could Help It Lower Its Biggest Expense
During its fiscal 2023 (which ended in January), Zoom Video Communications (NASDAQ: ZM) generated record revenue of about $4.4 billion. Profitability, however, was down. And for this reason, investors would like the company to lower expenses to help bring profits back up.
Zoom's largest operating expense is sales and marketing, which makes it the biggest opportunity for cost-cutting. And there's a simple reason to believe that the company might be able to achieve savings on that score in its fiscal 2024.
At this point, Zoom is primarily an enterprise-software company. In the fourth quarter of its fiscal 2023, 57% of the company's revenue came from enterprise clients, up from 50% in the prior-year period. And declines in the consumer-level side of the business masked enterprise revenue growth of 18% in the quarter.
Source Fool.com
