Zoom raises full-year forecasts despite slowing growth

Zoom has raised its full-year revenue and profit forecasts, defying a slowdown in growth following the pandemic boom and facing tough economic conditions, according to Reuters. Despite an initial rally, the company's shares pared gains to a 0.7 percent increase after-market hours.

Moneycontrol News

May 23, 2023 / 12:56 IST

The videoconferencing company now predicts full-year revenue between $4.465 billion and $4.485 billion.

Zoom Video Communications Inc. has raised its full-year revenue and profit forecasts, despite a slowdown in growth following the pandemic boom and a challenging economic environment, as per a Reuters report. Although shares of the company initially rallied nearly 5 percent before trading, they pared gains to a 0.7 percent increase after-market hours.

Zoom, which gained widespread recognition during the COVID-19 lockdowns, has faced cooling growth as offices reopen and faces stiff competition from well-established rivals like Microsoft Corp's Teams, Cisco's Webex, and Salesforce's Slack.

Also Read | Zoom focuses on products for business to boost growth

The San Jose-based company revised its annual revenue forecast to a range of $4.47 billion to $4.49 billion, reflecting a growth rate of approximately 2 percent compared to last year. This adjustment comes after its previous forecast of $4.44 billion to $4.46 billion.

For the quarter ending April 30, online revenue declined by 8 percent to $473.4 million. Zoom anticipates that it will reach nearly $480 million in the second quarter and remain relatively stable throughout fiscal 2024.

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