Zoom Communications forecasts downbeat annual revenue (updated)

Zoom Communications

24/02/2025 21:12

(Adds shares and background in paragraphs 2-4)
       Feb 24 (Reuters) - Zoom Communications  ZM.O  forecast
annual revenue below Wall Street estimates on Monday, in a sign
of weak demand for its wide range of conferencing tools as
employers gradually move away from hybrid work models.
    The company's shares were down 4% in extended trading. 
    Zoom had seen rapid growth in users and subscribers during
the pandemic-induced lockdowns, but concerns are being raised
over the sustainability of the current demand for video
conferencing.
    The company also faces stiff competition from Microsoft's
 MSFT.O  collaboration software Teams.
    Zoom expects fiscal 2026 revenue between $4.79 billion and
$4.80 billion, compared with the average analyst estimate of
$4.81 billion, according to data compiled by LSEG.

 (Reporting by Juby Babu in Mexico City; Editing by Shounak
Dasgupta)
 ((Juby.Babu@thomsonreuters.com))