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August 8, 2023
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ZOOM SHARES DROP 16% AS WORK-FROM-HOME DARLING REPORTS SLOWER SALES

By
Reuters


Thanks for contacting us. We've received your submission.

Back to Reading
November 23, 2021 1:02pm
Updated
November 23, 2021 3:14pm
0:01 / 0:38


Bud Light distributors no longer expect sales to recover from Dylan Mulvaney
disaster




MORE ON: ZOOM


 * NYC OFFICIALS EXPECT ‘THOUSANDS’ OF MIGRANT STUDENTS TO ARRIVE IN NEXT COUPLE
   WEEKS: SOURCE


 * END OF AN ERA: ZOOM TELLS EMPLOYEES TO RETURN TO OFFICE FOR WORK


 * I ENDED AN AFFAIR WITH MY BOSS, NOW HE’S BEING MEAN — WHAT CAN I DO?


 * JEFFREY TOOBIN ADDRESSES ZOOM CALL MASTURBATION SCANDAL: ‘I’LL REGRET IT FOR
   THE REST OF MY LIFE’

Zoom shares plummeted by nearly 15 percent Tuesday after the work-from-home
darling said its sales were slowing when compared to the go-go days of the
pandemic.

The company’s stock dropped to its lowest level in 17 months after the video
conferencing platform posted its slowest quarterly revenue growth amid stiff
competition from deep-pocketed rivals Cisco, Microsoft and Salesforce.

The company on Tuesday posted a better than expected third-quarter revenue of
$1.05 billion, but that came at a 35 percent jump compared with an astronomical
360 percent in the pandemic-hit year earlier period.

“With topline growth still weighed down by weakening trends in the micro segment
from pull-forward and temporary pandemic business, we look for a clear line of
sight to the growth trough,” said brokerage Needham.

Zoom’s addition of new customers with more than 10 employees also grew at its
slowest pace at 18 percent, below pre-pandemic levels when the company was not
yet a household name.

The company’s growth at small and medium businesses might be saturating, while
it has barely penetrated the large enterprise market, Third Bridge analyst Joe
McCormack said.

However, developing it into a contact center product will take longer after its
$14.7 billion deal to buy call-center software provider Five9 fell through last
month. 

Shares of Zoom — helmed by CEO Eric Yuan — were trading down 18 percent to
$197.94 in early afternoon trading. The stock has nearly halved in value since
hitting a peak of $114 billion last year as the pandemic raged.

“For now, investors will need some patience as we do not see any upcoming
catalysts that would change the sentiment on the stock,” Evercore analysts wrote
in a note.




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Filed under
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 * Zoom
 * 11/23/21

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