Zoom Video stock sinks 17% after earnings reveal back-to-work trend is slowing customer growth
- Shares of
Zoomtumbled as much as 17% Tuesday.
- The video communications company saw sales growth slow significantly as many workers return to the office.
Shares of Zoom Video plunged as much as 17% Tuesday after the digital communications company reported better-than-expected third quarter earnings but projected a revenue slowdown as the
Shares of the company were trading at $200.93 as of 10:36 a.m. ET on Tuesday.
Zoom reported $1.11
Revenue jumped 35% year over year, though it slowed from 54% growth in the prior quarter.
The communications company closed out October with 512,100 customers with more than 10 employees, an increase of 18%, but significantly less than the 36% of the second quarter. The figures suggest the company's user growth trajectory is slowing as more people trickle back to the office.
In weighing the company's long-term prospects, experts are eyeing its use among larger customers and whether it will be able to compete with giants like Alphabet and Microsoft, which both offer similar services that are integrated into broader workflow suites.
For the fiscal fourth quarter, Zoom Video expects adjusted earnings of $1.06 to $1.07 per share, with analysts estimating $1.05.
- 479 leaked photos purporting to show Putin's secret palace, with an ice rink and pole-dancing room, published by Navalny foundation
- SEBI is hiring young graduate professionals for a monthly stipend of ₹60,000, last date is January 25
- The first pig-heart transplant patient was denied a human heart after failing to follow doctors' orders
- This Indian couple plans to get married in a Hogwarts-themed metaverse to beat the pandemic's restrictions
- Here are some of Netaji’s inspirational quotes as India remembers its valiant fighter
- Lifecycle of cryptocurrencies – From creation to trade and destruction
- Reliance Industries net profit more than triples in the last eight quarters to $2.8 billion
- Reliance Retail earns $1.3 billion more than its best-ever quarter