At the height of the COVID-19 pandemic, Skype hit 40 million daily active users. This is because organizations started transitioning to hybrid work, forcing them to become dependent on virtual meeting tools in a bid to prevent the further spread of the virus.
However, the communication tool seems to be on a downward spiral. According to a report by L’Informé, a french publication, Skype’s annual revenue is at an all-time low. In retrospect, the company’s annual revenue in 2013 was $722 million.
With a difference of almost 10 years, Skype’s annual revenue has dropped by 74.5% with last year’s annual revenue coming in at $184.3 million. Last year, Microsoft released a preview version of Skype that allowed them to make phone calls to and from Ukraine for free.
The company’s financial information indicates that this move caused it to incur a $7.5 million loss. The financial report further highlights that the demand for Skype credit has significantly dropped, an indication that users are not making calls as much using the platform.
What’s more, the platform’s annual profit has also been affected having dropped from 90.8 million to $6.35 million. This translates to a 93% drop in almost 10 years. Perhaps, these margins can be traced back to when Microsoft removed some key features from the platform, a move that was not well-received by users.
Besides, Microsoft championing Teams to become its default messaging app, having exceeded 270 million monthly active users last year doesn’t help Skype’s case. Share your thoughts with us in the comment section.