Zoom zaps sales estimates but Cloud costs weigh on shares

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By Stephen Nellis and Uday Sampath Kumar
(Reuters) - Zoom Video Communications Inc forecast fourth-quarter revenue above expectations on Monday but its gross margins fell and some growth metrics slowed, sending shares down 5.2% despite booming sales powered by working and learning from home.
Zoom's user figures have spiked as a pandemic-induced switch to work from home encouraged more users of its video conferencing service to sign up for paid subscriptions.
But that growth has come at a cost.
While Zoom operates some of its own data centers, it also relies on cloud computing services from outside vendors such as Amazon.com, Microsoft Corp and Oracle Corp to keep up with rising demand. Those bills, combined with large numbers of free users, helped push down Zoom's gross profit to 66.7% ...


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