Zoom Video Communications Inc forecast fiscal 2023 revenue below Wall Street estimates on Monday, signaling a hit from tough competition and lower sign ups for its core Meetings platform, and sending its shares down 12per cent in extended trading.
Competition from Cisco’s conferencing tool Webex, Microsoft’s Teams and Salesforce’s Slack, which already have high penetration in the enterprise space, has made it difficult for Zoom to win over customers in the space.
That coupled with tapering pandemic-led growth as schools and workplaces open has hit Zoom, which derives a large portion of its revenue from smaller organizations.
The video conferencing platform forecast annual revenue between $4.53 billion and $4.55 billion, compared with estimates of $4.71 billion, according to IBES data from Refinitiv.
Revenue in the fourth quarter rose 21per cent to $1.07 billion, Zoom’s slowest-ever growth since it went public in 2019.
(Reporting by Chavi Mehta in Bengaluru; Editing by Amy Caren Daniel)