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Zoom Video Communications Inc on Monday slashed its annual revenue forecast amid a slump in demand for video conferencing platforms as pandemic restrictions ease and competition increases.
After posting explosive growth during the pandemic, Zoom, which competes with WeChat Work, Microsoft Teams, Cisco WebEx and Slack, is facing a slump as red-hot inflation is eroding customers’ spending power. Is.
Zoom now expects annual revenue to be between $4.37 billion and $4.38 billion, compared to an earlier outlook of $4.39 billion and $4.40 billion.
However, the company raised its annual adjusted profit per share to between $3.91 and $3.94, compared to the previously forecast of $3.66 to $3.69.
Revenue rose 5% to $1.1 billion for the third quarter ended October 31.
“In the third quarter, we drove revenue above guidance with continued momentum across the enterprise,” said Eric Yuan, Chief Executive Officer.
On an adjusted basis, the company earned $1.07 per share during the quarter, compared with estimates of 84 cents per share, according to Refinitiv data.