Video conferencing company Zoom (NASDAQ:ZM) reported better-than-expected quarterly earnings even as it warned of a revenue slowdown as the global pandemic comes to an end.
For its fiscal fourth quarter, Zoom forecast adjusted earnings of $1.06 U.S. to $1.07 U.S. per share on $1.051 billion U.S. to $1.053 billion U.S. in revenue, which implies 19% growth.
Analysts polled by Refinitiv had expected $1.05 U.S. in earnings per share and $1.02 billion U.S. in revenues.
Zoom stock skyrocketed last year as the company expanded from a contender in a narrow category of business software to a necessary tool as people worked and learned from home.
Revenue growth was above 300% as recently as the quarter that ended in January. Now Zoom has reported its slowest growth since before its 2019 initial public offering (IPO).
While Zoom is reckoning with decelerating growth because so many businesses made their purchases last year, the company is expanding its usage within big organizations.
Zoom said that over 2,500 customers are spending more than $100,000 U.S. a year, up 94% from the same period a year earlier.
During the quarter, Zoom said it had called off its plan to acquire cloud contact center software provider Five9 for $14.7 billion U.S. In announcing the news, Zoom said its own cloud contact center software would launch in early 2022.
Zoom shares are down 28% in 2021, while the S&P 500 index is up 25% over the same period.
