The news: Zoom, the video-conferencing company, said it remains optimistic about its future despite a drop in online sign-ups from the pandemic. Its growth has cooled as offices reopen and it faces more competition from Microsoft's Teams, Salesforce's Slack, and others. By the numbers: In the three months through April 30, Zoom posted a 3% increase in total revenue compared to the year-ago quarter, a deceleration from its growth during lockdowns. Despite the slowdown, Zoom has still raised its full-year revenue and profit forecasts. It reported better-than-expected results for its fiscal first quarter, which CEO Eric Yuan attributed to stabilizing online revenue, improved business efficiencies, and growth in its enterprise side. Why it matters: Zoom is betting on achieved stability in its online segment and popularity among enterprise customers, which account for 57% of total revenue that was up 13% year-over-year. Even so, concerns remain about the limits of Zoom's growth as large companies reduce spending and the company deals with a disruption in sales after recently laying off 1,300 employees.
|
