They have 1702 employees and $7.6m profit (net income) on $331m revenues for 2019. Their financial statement shows that of their $263m in 2019 operating expense

They have 1702 employees and $7.6m profit (net income) on $331m revenues for 2019. Their financial statement shows that of their $263m in 2019 operating expense, $186m is in sales and marketing. $33m in R&D. And nearly $2m of that $7.5m in net income comes from interest income and other income. The gross margin figures (82% for 2019) are defined as "revenue - cost of revenue". And cost of revenue is: > Cost of revenue primarily consists of costs related to hosting our video-first communications platform and providing general operating support services to our customers. These costs are comprised of co-located data center costs, third-party cloud hosting costs, integrated third-party public switched telephone network (PSTN) services, personnel-related expenses, amortization of capitalized software development costs and allocated overhead costs. Indirect overhead associated with corporate facilities and related depreciation is allocated to cost of revenue and operating expenses based on applicable headcount. While I do like that they are profitable and have a plan for profit, unlike the other glitzier tech IPOs, it does seem like the return on capital is low. They have received $146m in funding to date (https://www.crunchbase.com/organization/zoom-video-communications https://www.crunchbase.com/organization/zoom-video-communica...) after all, and in the end, $7.6m/year is not much to show for it. This is really a bet that in the long term, the costs in sales, marketing, R&D, and General Administration can be cut severely so that the revenue can be realized as mostly profit. Hard to know if that day will actually come.