Beautiful Virgin Islands

Tuesday, Jun 03, 2025

Zoom Video Communications stock tanks on growth concerns

Zoom Video Communications stock tanks on growth concerns

Zoom Video Communications Inc. was on track for its worst day in almost 10 months after the video-conferencing provider warned demand for its service will slow.

Shares of the San Jose, California-based company plunged by as much as 17% to $288.30 apiece before paring their losses. At session lows, the stock was 49% below its all-time high of $568.34 set on Oct. 19.


"We had expected that [a slowdown] towards the end of the year, but it's just happened a little bit more quickly than we expected," Zoom CFO Kelly Steckelberg said on the company’s second-quarter earnings call.

Customer churn is beginning to pick up at businesses with less than 10 employees. At the same time, annual growth in customers with more than 10 employees slowed to 36.4% year over year from 87.3% the prior quarter.

Current quarter and full-year guidance imply a "sharp slowdown in growth," wrote Oppenheimer analyst Rick Schafer.

Zoom reported quarterly revenue surged 54% year over year to a record of $1.02 billion. However, that was well below the 191% growth in the previous quarter and the 355% growth experienced during the height of the pandemic.

Profit in the three months through July 31 was up 70% year over year to $317 million.

Both numbers were ahead of Wall Street estimates.

Looking ahead, Zoom sees annual revenue of $4.01 billion to $4.02 billion, up slightly from the previous estimate of $3.98 billion to $3.99 billion. Adjusted profit is forecast to be between $4.75 and $4.79 a share, compared with its previous range of $4.56 to $4.61 a share.

Zoom shares were up 3.02% this year through Monday compared with the S&P 500’s 21% gain.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
×