Zoom reports record low quarterly revenue growth
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Zoom Video Communications completed the second quarter of the year with the worst revenue growth for itself – only 8% year on year. As a result, the company was forced to lower its revenue and earnings guidance for fiscal year 2023. The company now expects its annual revenue to be $4.39-4.40 billion compared to the previous forecast of $4.53-4.55 billion. The company cut its earnings forecast from $3.70-3.77 per share to $3. 66–3.69.
Zoom’s revenue growth is declining as end-users have become noticeably less likely to use video conferencing services, which became extremely popular during the COVID-19 pandemic in 2020. In addition, the company is facing increasing competition in the market.
Zoom’s quarterly revenue was $1.1 billion. The company’s net profit decreased by almost seven times compared to last year, from $316.9 million to $45.7 million.
After the publication of financial statements, the company’s shares sank in over-the-counter trading by more than 9%.
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