Zoom Projects Sales That Miss Estimates on Slowing Growth
- Company says changing customer metrics to focus on enterprises
- Board authorizes share buyback plan of as much as $1 billion
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Zoom Video Communications Inc. projected sales for the current quarter that fell short of Wall Street’s estimates, ramping up pressure on the software vendor to show it can continue to grow beyond the pandemic boom. Shares were little changed in extended trading, after earlier dropping as much as 15%.
Sales will be about $1.07 billion in the period ending in April, the San Jose, California-based company said Monday in a statement. Analysts, on average, estimated $1.1 billion, or growth of about 15% from the quarter a year earlier, according to data compiled by Bloomberg. For the full year, Zoom anticipates revenue as high as $4.55 billion, which was also lower than Wall Street’s estimate of $4.75 billion.