Zoom Video Communications Inc’s results showed that its transition from an essential Covid-era tool to an enterprise business platform is going to take longer than expected.
Zoom’s breakneck growth during the pandemic has cooled considerably as offices reopen and competition intensifies from Microsoft Corp’s Teams video communications platform. 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.
Chief executive officer Eric Yuan also expressed confidence in the company’s new products. “Our recently launched Zoom Contact Center and Zoom IQ for Sales products saw some great early wins while Zoom Phone delivered milestone results, hitting a record number of licenses sold in the quarter,” he said in the statement.
The shares declined to a low of $87 in extended trading after closing at $97.44 in New York. The stock has dropped 47% this year, missing out on the big rally in technology stocks since mid-June.