Zoom Video Communications’ latest financial results show that its transition from an essential pandemic-era tool to an enterprise business platform is going to take longer than expected.
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 businesses faster than anticipated.
The results, said Citigroup analyst Tyler Radke, were "even worse than we expected.” The shares slid more than 8% in extended trading.