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Zoom’s Enterprise Bet Is Delayed as Company Cuts Sales Forecast

  • Software maker’s revenue projection falls short of estimates
  • Shares drop most in a year to lowest close since January 2020
Bloomberg business news
Zoom Cuts Sales Forecast on Slower Enterprise Growth
Updated on

Zoom Video Communications Inc.’s results showed that its transition from an essential Covid-era tool to an enterprise business platform is going to take longer than expected. The shares plunged to a closing price last seen in January 2020 before the company began its meteoric rise.

While Zoom said it’s generating a growing percentage of revenue from enterprise customers, the software maker didn’t add as many in the fiscal second quarter as analysts expected. The company also cut its annual revenue forecast, saying it’s losing sales from consumers and small business faster than anticipated.