Videotelephony software program Zoom declined about 6% in extended trading after reporting its slowest quarterly sales growth on record and slightly reduced its full-year revenue forecast.
Revenue increased 5% to $1.1 billion, in line with analysts' average estimate. For the full year, the software company reduced its sales forecast to as much as $4.38 billion from its August projection of as much as $4.4 billion.
Chief Financial Officer Kelly Steckelberg revealed on a conference call with analysts that the full-year sales guidance, which was issued Monday, assumes that Zoom’s enterprise business will grow more than 20% while revenue from online consumer and small business customers will decline about 8%.
Zoom which witnessed a massive boom during the pandemic is fighting to reverse a slowdown in growth for its video communications service by expanding its tools for business.
At its annual user conference earlier this month, the company launched email and calendar services, in hopes to keep more workers on the platform.