The company also cut its annual revenue forecast, saying it’s losing sales from consumers and small businesses faster than anticipated.
Online sales to consumers and small businesses are expected to decline 7% to 8% this year, chief financial officer Kelly Steckelberg said on a conference call after the earnings were announced. Analysts are generally positive on these secondary offerings, particularly Zoom Phone, but believe they will take time to pay off. Sales to enterprise customers are expected to grow by more than 20% this year, Steckelberg said.“Our recently launched Zoom Contact Centre and Zoom IQ for Sales products saw some great early wins, while Zoom Phone delivered milestone results, hitting a record number of licences sold in the quarter,” he said.
Profit, excluding some items, will be 82 US cents to 83 US cents a share, compared with analysts’ average estimate of 91 US cents . Zoom’s fiscal second-quarter sales increased 7.6% to US$1.1bil , Zoom’s slowest year-over-year growth on record.