As global work-from-home bookings roll back, Zoom’s revenue forecast is not hitting its previous highs.
Video conferencing platform Zoom has posted a disappointing outlook as part of its fourth quarter 2022 financial results as some workers begin to return to the office and customers slow down their investment in video technology.
Zoom shifts focus to businesses
When global changes took effect in March 2020, the number of Zoom customers skyrocketed as employers turned to virtual conferencing software to smooth the transition to working from home. The company’s market capitalization peaked in October 2020, but the company has since lost more than three-quarters of its value.
Zoom’s customer base has also shrunk. At the end of January 2022, the company said it had 509,800 small customers with more than 10 employees, down from 512,100 in October.
However, it plans to stop reporting that number from this quarter as Zoom CFO Kelly Steckelberg said in a conversation with analysts that Zoom does not believe it is an appropriate metric to use going forward.
Instead, Zoom will disclose the number of enterprise customers and the net dollar growth rate among those customers. In terms of those numbers, Zoom said it now has 191,000 enterprise customers, up 35% from a year earlier. The net growth rate of the dollar is 130%.
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