Zoom's sales growth slows even as enterprise business stays steady - BNN Bloomberg

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Zoom declined about five per cent in extended trading after reporting its slowest quarterly sales growth on record and slightly reduced its full-year revenue forecast.

Zoom Video Communications Inc. declined about 5 per cent in extended trading after reporting its slowest quarterly sales growth on record and slightly reduced its full-year revenue forecast.

Zoom, which burst into public consciousness during the height of the pandemic, is fighting to reverse a slowdown in growth for its video communications service by expanding its tools for business. At its annual user conference earlier this month, it unveiled email and calendar services, which it hopes will keep more workers on the platform.

Zoom shares, which have been hovering close to pre-pandemic prices, declined to a low of US$74.73 in extended trading after closing at US$80.26 in New York. The stock has dropped 56 per cent this year. The company said churn among consumers and small businesses has begun to stabilize. Average monthly churn among online customers was 3.1 per cent in the fiscal third quarter, down from 3.7 per cent in the same period last year.

 

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Zoom...doom and gloom

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