- Zoho CEO, Sridhar Vembu, explains why the company chooses to remain private in a recent post.
- Vembu emphasizes the freedom from quarterly pressures, enabling long-term investments in R&D and infrastructure.
- He highlights the potential for employee burnout and attrition under the relentless pressure of managing stock prices in public companies.
In a recent statement, Zoho Corporation’s CEO, Sridhar Vembu, shed light on the company’s decision to remain private, citing the challenges of managing a public company. Vembu highlighted the freedom enjoyed by private entities to invest in long-term research and development (R&D) and infrastructure without being burdened by quarterly performance expectations. He expressed concerns about the intense pressure to manage stock prices in public companies, which often leads to employee burnout and attrition.
Vembu emphasized his personal preference for staying private, enabling him to focus on critical projects while maintaining a balanced lifestyle. He noted that as a public company CEO, the pressure to manage stock prices would be overwhelming, potentially compromising his ability to engage in deep tech projects and community endeavors. The post garnered significant attention, with many users appreciating Zoho’s approach while acknowledging the regulatory challenges associated with going public.
Additionally, Zoho’s financial results for FY23 showcased steady growth, with a 30% increase in revenue compared to the previous year. Despite macroeconomic uncertainties impacting the demand for IT services, Zoho reported a 37% growth in revenue from its enterprise IT management division, Manage Engine. These results underscore Zoho’s resilience and strategic focus on sustainable growth in the ever-evolving tech landscape.
