Zoom forecasts quarterly profit below estimates
On Tuesday, Zoom Communications downgraded its third-quarter profit expectations below Wall Street's forecasts, indicating that competition is putting pressure on the video-conferencing firm despite its expansion of AI capabilities. The company's shares slipped 3.8% in after-hours trading. Zoom has been introducing AI-powered tools like an AI Companion assistant, a meeting receptionist assistant, and enterprise-focused AI services under the Zoom AI Services banner to lure more users.
However, the firm is contending with fierce competition from rivals such as Microsoft Teams and Google Meet's Alphabet offering. For the third quarter, Zoom had projected revenue between $1.275 billion and $1.28 billion, which fell short of analysts' collective estimate of $1.28 billion, as per data from LSEG. The company also anticipated adjusted profit per share in the range of $1.46 to $1.48, trailing analysts' aggregate projection of $1.50 per share.
Zoom reported revenue of $1.28 billion for the second quarter, exceeding Wall Street's predicted $1.27 billion, based on LSEG data. Adjusted profit per share for the period stood at $1.55, surpassing analysts' typical estimate of $1.48.
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Also reported by 2 other outlets
- Zoom forecasts quarterly profit below estimates investing.com
- Zoom forecasts quarterly profit below estimates channelnewsasia.com