• Home
  • Apps
  • Apps News
  • Zoom Posts Slow Q3 Revenue Growth Due to Ease in Demand for Video Conferencing Tools

Zoom Posts Slow Q3 Revenue Growth Due to Ease in Demand for Video-Conferencing Tools

Stiff competition posed by Webex and Teams has made it challenging for Zoom to win over enterprise customers.

Zoom Posts Slow Q3 Revenue Growth Due to Ease in Demand for Video-Conferencing Tools

Zoom said revenue was at $1.05 billion (roughly Rs. 7,830 crore) in the quarter ended October 31

Highlights
  • Zoom launched a variety of new offerings such as Events platform
  • Investment bankers and analysts warned that Zoom faces several hurdles
  • Zoom reported an adjusted profit of $1.11 (roughly Rs. 82) per share
Advertisement

Zoom Video Communications Inc's third-quarter revenue growth rate slowed to 35 percent as demand for its video-conferencing tools eased from the pandemic-fuelled heights last year, sending its shares down about 6 percent on Monday.

Revenue was at $1.05 billion (roughly Rs. 7,830 crore) in the quarter ended October 31, Zoom said, after rising 54 percent in the previous quarter and surging 360 percent a year earlier.

The stock, a pandemic winner, fell to $227.5 (roughly Rs. 17,000) in extended trading, after having lost about 28 percent this year.

Moreover, stiff competition posed by Cisco's conferencing tool Webex and Microsoft's Teams has made it challenging for Zoom to win over enterprise customers.

To retain its users, the company launched a variety of new offerings such as Events platform, where businesses can host large-scale conferences, cloud-calling service Zoom Phone and in-office meetings feature Zoom Rooms.

"Their Rooms and Phone businesses are 5 percent penetrated or below and that seems to imply plenty of remaining runway for growth even within their existing capabilities only," said Joe McCormack, senior analyst at Third Bridge said.

Investment bankers and analysts have warned that Zoom faces several hurdles in sustaining growth after its $14.7 billion (roughly Rs. 1,09,560 crore) bid to buy call centre software firm Five9 fell through.

Still, Zoom reported an adjusted profit of $1.11 (roughly Rs. 82) per share, beating Wall Street's estimates $1.09 (roughly Rs. 81) per share, according to Refinitiv data.

The company also forecast current-quarter revenue and earnings above expectations, and raised its full-year revenue estimate to around $4.08 billion (roughly Rs. 30,420 crore) from about $4.01 billion (roughly Rs. 29,900 crore) earlier.


Can PUBG: New State rival BGMI and PUBG Mobile in the battle royale space? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Zoom, Q3 2021
The Matrix Resurrections New Posters Introduce Priyanka Chopra, Plus More of Keanu Reeves and Other Characters
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »