One quick thing: India's video streaming market neared 100 million subscriptions in 2022

In today’s newsletter:

• Cognizant says revenues will decline, to lay off 3,500
• Zoho builds own browser Ulaa to rival Chrome
• After Ola, Ather to refund charger cost

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The pain in the IT services industry has been underscored by the results of most companies, and Cognizant, the latest addition to the list, has also highlighted it.

Why?

• The company is planning to lay off 3,500 employees, representing 1% of its workforce, who are in non-billable or corporate roles
  
  
• It is giving up 11 million square feet of office space — or 80k seats — primarily in India. The company expects to save $100 million in real estate costs by 2025
  
  
• Cognizant’s margins are among the lowest in the IT industry

The US-headquartered company competes with Indian peers such as TCS and Infosys. More than two-thirds of the company's workforce is based in India.

• 3% increase in net profit year-on-year at $580 million
  
  
• Revenue at $4.81 billion, a decline of 0.3% YoY
  
  
• Bookings for the quarter stood at $25.6 billion on a trailing twelve-month basis

Despite the company's talk of growth and a strong deal pipeline, the devil is in the details of its guidance.

• The company anticipates a decline in revenues for the next quarter and expects them to either remain flat or decline for the entire year

In his first quarter as CEO, Ravi Kumar oversaw the company reporting revenues above its guidance, despite the unfavourable macroeconomic climate. 

While the company secured some large deals, it is also experiencing the effects of softer discretionary spending and delays in decision-making by both existing and potential clients.

Kumar's uphill climb is evident as he takes on the company's top role at a time when it has underperformed and ceded key market share, not to mention the challenges posed by the larger economic environment.

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You'd think the web browser market is pretty much saturated, with incumbents like Google Chrome, Apple's Safari, and Mozilla Firefox dominating. Today, however, we saw a new entrant to the market from an unexpected quarter: a bootstrapped cloud software giant.

Zoho Corporation today launched a new web browser called Ulaa, which takes its name from the Tamil word for Journey or Voyage. Ulaa is built to prioritize the security of personal data, featuring pre-built capabilities that universally block tracking and website surveillance.

“Not many browsers on the market today are built to protect user privacy. They were created to protect respective company's ad-based business models and surveillance companies that complement them, which runs counter to protecting users. This conflict between user's preferences and browser's business models means end users lose,"  said Sridhar Vembu, CEO and Co-Founder of Zoho Corporation.

Ulaa is currently available as a free download on desktop and mobile platforms, including iOS and Android.

Zoho, however, has its work cut out in a highly competitive web browser market. As of April 2023, Google Chrome remains the leader in the web browser market with a 63.45% market share, followed by Apple's Safari (20.48%), Microsoft Edge (4.97%), and Mozilla Firefox (2.76%), according to the latest data from web analytics firm Statcounter. 

However, Zoho's brand-new browser offers some distinct features.

• Unlike most browsers that use time trackers and idle monitors to provide user data to software providers and their partners, Ulaa doesn't track or share any data with third parties

• Ulaa also has a Dynamic Mode Switching feature, allowing users to switch between five isolated user profile modes

The launch of Ulaa reminds us of when Zoho, back in 2021, surprised users with a new offering called Arattai (meaning "chat" in Tamil), which was a direct competitor to WhatsApp and other messaging apps.

• However, despite receiving around 20,000 downloads in just a few days after its launch, the app appears to have failed to gain significant market traction

Users who have tried the Ulaa browser have praised its speed and the ability to easily switch between different modes. However, it remains to be seen if Ulaa can withstand the test of time.

If you happen to be an Ather customer, it might be a good idea to keep an eye on your bank statement, as you could be eligible for a refund! 

Ather has recently joined a growing list of companies that are offering refunds to customers who bought electric vehicle (EV) chargers separately. 

• Ola Electric had previously announced that it would reimburse customers who are eligible for the cost of the charger

The Union Ministry of Heavy Industries (MHI) had earlier initiated a probe against EV makers for overcharging customers, following anonymous complaints.

• The ministry found that many original equipment manufacturers (OEMs) violated the FAME-II EV subsidy guidelines by making customers pay for the charging devices

In compliance with the ministry's order, other OEMs have also chosen to refund the cost of the charger to all eligible customers.

Yesterday, TVS Motor Company announced that it will refund approximately Rs 20 crore to customers.

• Hero MotoCorp is also likely to follow suit

Go deeper

Yesterday, Freshworks announced its Q1 results, which were received positively by the market. The company reported an operating profit (non-GAAP) of $3.9 million, which is a significant milestone since it was listed on the Nasdaq. 

• But, upon closer inspection, it was observed that there was a decrease in its net dollar retention rate, which measures changes in recurring revenue generated by existing customers. 

In an exclusive interview, Founder and CEO Girish Mathrubootham dismissed this decline as a red flag and said that it is normal in the current macroeconomic condition. 

He further discussed his path to achieving net profitability, the company's acquisitions, buybacks, and the exit of its early-backer Tiger Global.

Read the full interview

The Election Commission (EC) is keeping its fingers crossed as it prepares for the upcoming Karnataka elections. 

Despite making efforts such as scheduling the election on a mid-week day (May 10, Wednesday) and enlisting the help of Resident Welfare Associations/tech parks, the question remains: will Bangaloreans actually come out of their houses and vote?

Reasons for low voter turnout

• Urban apathy
• Errors in the voter list
• Residents who may have moved elsewhere
• Presence of a sizeable floating population

The EC has set a goal of achieving a 65% voter turnout in Bengaluru for the upcoming assembly election.

Go deeper

On May 4, 2000, a computer virus called Love Letter, also known as the "ILOVEYOU" bug, infected millions of personal computers running Windows globally. 

It spread via email, luring victims into opening the message with the subject "ILOVEYOU." Approximately 2.5 to 3 million computers were impacted by the virus, resulting in an estimated cost of $8.7 billion due to system downtime.

• Coinbase announced that it will stop issuing new loans through its Borrow feature, which allowed customers in the US to post their cryptocurrency as collateral in exchange for a cash loan.
  
  
• FTX is looking to claw back around $4 billion from bankrupt crypto lender Genesis and British Virgin Islands-based GGC International as part of its efforts to recover value for creditors.

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