Global economy taking a turn for worse, caution ahead: Zoho's Sridhar Vembu
Sridhar Vembu, cofounder and CEO of software-as-a-service (SaaS) company Zoho, warned on Monday that the global economy is likely taking a turn for the worse, urging companies to exercise caution.
In a post on X (formerly Twitter), Vembu said that Zoho has seen a slowdown in growth across geographies in September.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Digital Marketing and AnalyticsVisitNorthwestern UniversityKellogg Post Graduate Certificate in Digital MarketingVisitNorthwestern UniversityKellogg Post Graduate Certificate in Product ManagementVisitIndian School of BusinessISB Product ManagementVisit«We saw a fairly pronounced slow down in growth in September across countries and across products,» he posted.
Vembu said that given the geographically and product-wise diversified nature of our revenue streams, «I suspect the global economy is taking a turn for the worse».
«Caution ahead,» he added.
As IT companies gear up for the July-September period earnings, brokerage firm Nomura has predicted continued weakness in demand, saying sustained macro uncertainty will adversely impact their financials.
«We believe the void created by the lower number of small-sized and discretionary projects along with delays in client decision-making and ramp-up of won projects in certain cases will lead to both revenue and margin disappointments in the near term, given the 'sticky' nature of costs,» the firm said in its latest report.
Last month, Zoho surpassed 100 million users across its more than 55 business applications. The growth came on the heels of the company reaching $1 billion in annual revenue last year.
Zoho said it has increased its traction
