Zoom has posted its first billion-dollar quarter, but forecasts have usage of the video communication platform decreasing in the coming months, Reuters reported.
Analysts have said that the estimate for the company’s third quarter revenue is likely to be around $1.013 billion, below Zoom’s own forecast of between $1.015 billion and $1.02 billion, according to the report.
Shares of Zoom fell 11 percent because of the news, the report stated. The company has seen pressures this year as COVID-19 vaccines have had more schools planning to reopen and workplaces planning to take workers back in-person. It has also faced competition from rivals like Microsoft and Webex from Cisco. Zoom has admitted that it plans to see a decline in revenue with companies with 10 or fewer employees, which means mostly small- to medium-sized businesses (SMBs) that pay monthly bills.
Meanwhile, Zoom’s revenues have risen around 31.2 percent in the past year, according to the report. That’s lower than expected compared to the multiple-fold growth rates from earlier in the pandemic when Zoom rapidly became a household name as COVID-19 swept the world and businesses had to shut down as fast as they could, moving online in many cases.
“We had expected that [slowdown] towards the end of the year, but it’s just happened a little bit more quickly than we expected,” Chief Financial Officer Kelly Steckelberg said on an earnings call, per the report.
In July, Zoom rolled out new features called Zoom Apps and Zoom Events.
Read more: Zoom Releases Apps, Events Features
The Zoom Apps feature allows for integrating third-party apps into online meetings, while Zoom Events lets users manage and host events, including offering ticketing and registration and creating multi-session events like conferences, in which attendees can network in a virtual lobby.
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