Zoom Video Communications Inc Ups Revenue and Profit Forecasts for Full Year, Overcoming Slower Growth Amidst Pandemic Slowdown and Challenging Economic Climate.
Following an almost 5% advance earlier, the company's shares pared gains to end the day 0.7% higher.
During lockdowns, Zoom became well-known, but since then, as offices reopen and rivalry from well-funded rivals such as Microsoft Corp.'s Teams, Cisco's Webex, and Salesforce's Slack heats up, growth has slowed.
Based in San Jose, California, Zoom increased its expected yearly revenue to between $4.47 billion and $4.49 billion, an increase of only about 2% from the previous year. It had previously predicted a range of $4.44 billion to $4.46 billion.
Zoom's Online Revenue Drops 8% to $473.4 Million in Q2, April 30th. Anticipates Near $480 Million in Q2 and Stabilization Throughout Fiscal 2024.
The enterprise division's quarterly sales increased 13%, up to $632 million.
Online users of Zoom include both individuals and small- and medium-sized organizations, while enterprise users are larger companies.
In contrast to a previous forecast of $4.11 to $4.18, the business now anticipates an annual adjusted profit per share of between $4.25 and $4.31.
Although first-quarter sales exceeded Wall Street forecasts, it grew at the slowest rate ever for a quarter (3%).
According to Refinitiv IBES, the company earned $1.16 per share on an adjusted basis in the first quarter, beating predictions of 99 cents.