Zoom's large R&D presence in China, which is likely made easier by CEO Eric Yuan's Chinese background, is turning out to be a major cost saver for the video-conference software maker.
Unlike most tech companies preparing to go public, video-conferencing startup Zoom is profitable. One key driver of Zoom's profitability: a large engineering team in China, where average tech salary is relatively lower than in the U.S.
"Our product development team is largely based in China, where personnel costs are less expensive than in many other jurisdictions," Zoom wrote in its filing."If we had to relocate our product development team from China to another jurisdiction, we could experience, among other things, higher operating expenses, which would adversely impact our operating margins and harm our business.
"One key driver of profitability is labor-market arbitrage," Tunguz wrote in a blog post about Zoom's financials.Tunguz told CNBC in an email that labor arbitrage, or moving jobs to inexpensive regions, is a growing trend among tech companies. Many of his portfolio companies are now looking for talent everywhere and are more willing to hire remote engineers outside of Silicon Valley because of the cost advantage.
इंडिया ताज़ा खबर, इंडिया मुख्य बातें
Similar News:आप इससे मिलती-जुलती खबरें भी पढ़ सकते हैं जिन्हें हमने अन्य समाचार स्रोतों से एकत्र किया है।
Samsung Elec sees green shoots in China smartphone business: co-CEOSamsung Electronics Co Ltd said on Wednesday its new Galaxy flagship smartphones...
और पढो »
Global growth is 'unlikely' if China trade and Brexit are not resolved, FedEx CEO saysJim Cramer chats with FedEx CEO Fred Smith about the company's reduction in growth expectations as U.S.-China trade and Brexit linger.
और पढो »
Standard Chartered CEO says fears of China growth slowdown, trade war are recedingStandard Chartered PLC Chief Executive Bill Winters said fears over a slowdown i...
और पढो »
China birth rates fall in several regions in 2018: China DailyChina's birth rate in several regions, including the capital Beijing, fell ...
और पढो »
Hot video meeting startup Zoom filed to go public, and it's profitableThe $1 billion video conferencing startup Zoom has publicly filed its S-1.
और पढो »
Billion-dollar startup Zoom filed to go public — and shares of a totally unrelated company also called called Zoom shot up 1,100%It's someone's lucky day at the delisted $150,000 Zoom Technologies.
और पढो »
Private equity chief says he's bullish on A.I. in ChinaChinese 'consumers are digitally equipped and very open to consume digitally,' said John Zhao, the CEO of Chinese private equity firm Hony Capital, at the China Development Forum in Beijing.
और पढो »
In China, Apple's Cook says he's bullish on global economy
और पढो »
China rescuers pull survivor from blast rubble as death toll risesRescuers pulled a survivor from rubble early on Saturday in the wake of a massiv...
और पढो »