Zoom tempers annual profit, revenue outlook as demand falters
2022.08.22 23:38
FILE PHOTO: Small toy figures are seen in front of the Zoom logo in this illustration picture taken March 15, 2021. REUTERS/Dado Ruvic/Illustration
(Reuters) -Zoom Video Communications Inc on Monday cut its annual profit and revenue forecast, as the video-conferencing platform invests in its products to sustain demand while grappling with intensifying competition.
Analysts have raised concerns about Zoom’s prospects as the pandemic recedes and competitors such as Microsoft (NASDAQ:MSFT)’s Teams, Cisco (NASDAQ:CSCO)’s WebEx and Google (NASDAQ:GOOGL)’s Meet fight for video-conferencing market share.
Moreover, Zoom has the uphill task of onboarding large clients, which contribute more than $100,000 in revenue, to sustain its pandemic-levels of growth at a time when companies are grappling with decades-high inflation.
Zoom now expects annual adjusted profit per share between $3.66 and $3.69, compared with $3.70 to $3.77 forecast earlier.
It forecast revenue between $4.39 billion and $4.40 billion, compared with its earlier outlook of $4.53 billion to $4.55 billion.
Zoom, which saw demand spike for its tools during the height of the pandemic, also reported its slowest revenue growth on record at 8% to $1.1 billion in the second quarter ended July 31.
