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<\/a><\/p>\nRevenue will be about $1.1 billion in the period ending in October, the San Jose, California-based company said Monday in a statement. Analysts, on average, expected $1.16 billion, or growth of about 10% from a year earlier, according to data compiled by Bloomberg. Profit, excluding some items, will be 82 cents to 83 cents a share, compared with analysts\u2019 average estimate of 91 cents.<\/p>\n
The company also reduced its annual sales forecast to about $4.4 billion from its May projection of as much as $4.55 billion. About $115 million of the cut is due to the \u201cbroader economic environment\u201d and $35 million is due to the stronger US dollar, Steckelberg said during the call.<\/p>\n
The shares declined to a low of $87 in extended trading after closing at $97.44 in New York. The stock has dropped 47% this year, missing out on the big rally in technology stocks since mid-June.<\/p>\n
Fiscal second-quarter sales increased 7.6% to $1.1 billion, Zoom\u2019s slowest year-over-year growth on record. Analysts, on average, projected $1.12 billion – making it the first quarter that the company has missed revenue estimates. Profit, excluding some items, was $1.05 a share, compared with the average estimate of 92 cents.<\/p>\n
Revenue from the region including Europe declined 8% in the quarter due to the Russia-Ukraine war, the strength of the US dollar and weakness in the consumer segment, the company said.<\/p>\n
\u201cWe recognize that the revenue results are disappointing and below our expectations as we navigate the current environment,\u201d Steckelberg said.<\/p>\n
In the period ended July 31, the company said it had 204,100 enterprise customers, an increase of 18% from a year earlier. The growth was lower than a 24% increase in the previous quarter. Analysts, on average, projected Zoom would report 205,854 enterprise customers.<\/p>\n
While the enterprise segment saw steady growth in the quarter, customer additions were \u201cquite weak,\u201d which may be a leading indicator of future headwinds, Citigroup\u2019s Radke wrote in a note after the results.<\/p>\n
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