Zoom cuts annual revenue forecast due to economy and rivalry

Zoom has reduced its annual revenue forecast because the video-conferencing platform expects a hit from declining online business and competitions from rival video conferencing platforms.

According to Visible Alpha’s average analyst estimate, Zoom will report adjusted earnings of 83 cents per share after the market close for the third quarter of its fiscal year 2023, down from $1.11 a year ago. The expected 4 per cent year-over-year revenue increase would extend the company’s annual growth rate’s precipitous decline after it more than tripled in late 2020 (the company’s fiscal 2021).

Zoom now anticipates annual revenue of $4.37 billion to $4.38 billion, up from $4.39 billion to $4.40 billion previously.

However, the company increased its annual adjusted profit per share forecast to between $3.91 and $3.94, up from $3.66 to $3.69 previously.

Revenue for the third quarter ended Oct. 31 increased 5 per cent to $1.1 billion, thanks to a 20 per cent increase from high-paying enterprise customers, according to the company.

The sources for this piece include an article in Reuters.

IT World Canada Staff
IT World Canada Staff
The online resource for Canadian Information Technology professionals.

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