Zoom cuts earnings forecasts for the year in the march back to the office
Zoom has cut its earnings forecasts for this year, having recorded its lowest quarterly revenue growth yet.
The pandemic communications darling had revenue rise eight per cent to a little over $1bn (£851m) in the second quarter, Zoom’s “fifth straight quarter with revenue of over one billion dollars”, chief financial officer Kelly Steckelberg said in a statement.
However, the company has dialled back its total revenue expectations for this year from $4.5bn (£3.8bn) to $4.3bn (£3.6bn) on the top end of the scale.
While bosses have also revised down forecasts for average earnings per share to between $3.66 and $3.69, from $3.70 and $3.77 in the first quarter.
“A mixed set of results which reflects the ongoing challenges in this uncertain world. One of the stellar performers during the pandemic. Now struggling to lure subscribers as they’re now spoilt for choice,” Paolo Pescatore, media and technology analyst at PP Foresight told City PM
However, Pescatore said it is “not all doom and gloom as the enterprise segment remains robust which is encouraging but that it is “unclear how the return to an office for workers will impact the business moving forward.”