Zoom shares fall 14% following revenue miss and gloomy forecast
Summary
Weighted sales, the strong U.S. dollar and performance in the companys online business negatively impacted revenue, CFO Kelly Steckelberg said in a statement. The company lowered its projections for the full 2023 fiscal year, primarily blaming economic conditions that caused executives to revise their view. "While Q2 surfaced many of our concerns that drove our recent downgrade, including SMB/Online pressure+margin risk, we underestimated the severity," they wrote in a Tuesday note to investors adding that the company outlook is "much worse than we feared." "We have implemented initiatives focused on driving new online subscriptions, which have shown early promise but were not enough to overcome the macro dynamics in the quarter," Steckelberg said on a Zoom call with analysts. Zooms online video services helped businesses and schools operate remotely during the Covid-19 pandemic, but its growth has slowed as stay at home orders subsided.