Growth at Zoom slows further
After the boom at the beginning of the Corona pandemic, the video conferencing service Zoom is now experiencing slower growth. In the past quarter, there was only an eight percent year-on-year increase in revenue to just under $1.1 billion.
This was announced by Zoom after the close of the U.S. stock market on Monday. Bottom line profit for the second fiscal quarter ended July fell to $45.7 million from $316.9 million a year ago. One of the reasons was a significant increase in marketing expenses.
Zoom, originally developed for use in companies, suddenly became a mass product during the Corona pandemic. Not only did companies turn to the software to keep their business running in the home office, but consumers also used it for things like family reunions and yoga classes. This explosive growth already flattened out with the removal of the Corona restrictions.
Focus on large companies
Zoom is now focusing on large corporate customers and, among other things, the call center business to lay the foundation for new growth. The strategy also includes using its strong position in video conferencing to also offer voice telephony to corporate customers. In this area - Zoom Phone - the past quarter was the best so far.
In the online business, which Zoom does primarily with consumers and small businesses, a decline of seven to eight percent is now expected for the current fiscal year. Previously, Zoom expected stagnating revenues in this area. Zoom lowered its revenue forecast for the fiscal year from previously just over $4.5 billion to just under $4.4 billion.
Investors sent the stock down about eight percent in after-hours U.S. trading. (SDA)
