Zoom Faces Lower Profit Forecast as Competition Tightens

Zoom’s most recent earnings report suggests the company may fall short of analyst expectations for this quarter. The stock slipped almost 3 % after hours, reflecting investor concern about its future growth.

Key Highlights

• Big‑Business Segment: Remains solid.
• Consumer & Small‑Biz Division: Still under pressure, with revenue at $489.7 million and a slight uptick in customer churn compared to the same period last year.
• AI Investment: Heavy spending on AI tools could trim operating margins as the wider software market faces uncertainty.

Forward Guidance

• First‑Quarter Revenue: Projected between $1.22 billion and $1.23 billion, just below the average analyst forecast of $1.22 billion.
• Adjusted EPS: Expected to fall between $1.40 and $1.42, missing the consensus estimate of $1.45.

Fourth‑Quarter Performance

• Revenue: Beat expectations with $1.25 billion versus a consensus of $1.23 billion.
• Adjusted EPS: Came in at $1.44, below the estimate of $1.49.