Zoom, a video communications startup, is seeing slower growth following the initial boom created by the coronavirus epidemic, with an 8% annual increase to just under $1. 1 billion in the most recent quarter.
After the US stock exchange closed on Monday, the corporation released the most recent numbers for the second fiscal quarter through the end of July.
Profits plummeted to $45. 7 million from $316.
9 million the year before, with one of the reasons cited being a significant increase in marketing expenses.
Zoom was intended for corporate use, but as stay-at-home orders spread over the world during the coronavirus outbreak, it soon grew in popularity.
Businesses have utilised the programme to carry on working from home, while consumers have used it for a variety of things, including family networking and yoga classes. As the coronavirus restrictions are relaxed, the company’s exponential growth has started to decelerate.
By focusing on significant enterprise clients and contact centre operations, Zoom is currently aiming to achieve fresh growth. It also uses its strong position in video conferencing to provide telephone services to its customers.
The company claims that the Zoom Phone had its best-ever quarter in the most recent quarter.
The revenue for Zoom’s web business, which primarily caters to individuals and small enterprises, is expected to remain stable but would likely decline by 7 to 8% this fiscal year.
Zoom decreased their fiscal year revenue estimate from just over $4. 5 billion to slightly less than $4. 4 billion.
The stock was down almost 8% in US after-hours trade.
The second quarter of Zoom’s growth is the worst.
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