Zoom issued a disappointing revenue forecast as growth continues to slow

Eric Yuan (Zoom)

Eric Yuan (Zoom)

Credits: Zoom

Video conferencing platform Zoom released a disappointing forecast for next financial year as it announced 2022 financial results in the fourth quarter, as some workers began to return to the office and customers slowed their investment. in video technology.

While quarterly revenue rose 21 percent year-on-year to US $ 1.07 billion, this represents a reduction from 35 percent growth in the previous quarter.

The company reported full-year revenues of $ 4.1 billion in 2022, up 55 percent annually, before predicting total revenue to grow between $ 4.53 billion and $ 4.55 billion in the next fiscal year, which less than analyst expectations of $ 4.71 billion. Shares dropped as much as 13 percent as a result.

Zoom has shifted its focus to enterprise

When the global lockouts took effect in March 2020, Zoom saw its customer numbers explode as employers turned to virtual conference software to smooth the transition to working at home. The company’s market cap rose in October 2020 to approximately $ 159 billion, but the company lost more than three-quarters of its value.

Zoom’s customer base has also dropped. By the end of January 2022, the company said it had 509,800 smaller customers with more than 10 employees, a figure down from 512,100 in October.


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