Video communication giant Zoom (ZM) reported its fiscal profit for the second quarter of 2022 after the bell on Monday, beating analyst expectations on the high and lows. But business growth has slowed as businesses and schools reopen.
These are key figures from the report compared to what Wall Street expected from the company, as compiled by Bloomberg.
The company’s shares fell more than 3% after the announcement.
Zoom is the epitome of coronavirus growth stocks. The company’s video communications software served as a lifeline for distance learning students and businesses trying to stay in touch with customers and employees during a global pandemic. It also provided ordinary people around the world with the means to see family and friends, earning it the accolade of Yahoo Finance’s Business of the Year in 2020.
User growth exploded for Zoom during the pandemic, with the number of customers with 10 or more employees growing 458% from 66,300 in the fiscal second quarter of 2020 to 370,200 in the fiscal second quarter of 2021. However, that growth slowed in the second quarter of 2017. 2022 to 36%, with the company reporting 504,900 such customers.
However, customers who pay more than $100,000 in the past 12 months continue to grow. The number of such customers shot up 112% from 466 in fiscal Q2 2020 to 988 in fiscal Q2 2021. In fiscal Q2 2022, the company saw 131% growth in the category, peaking at 2,278 customers.
But the company is entering a time of tough comparisons to last year’s performance, when so many companies were looking for ways to quickly expand their video chat capabilities.
To compensate, Zoom has invested heavily in expanding its communications offering. In July, the company bought Five9, a cloud customer contact center that allows Zoom to provide video customer service to its customers and customers.
The company has also recently announced Zoom app integrations that lets you access third-party apps from Zoom, including Dropbox Spaces, Dot Collector, SurveyMonkey Enterprise, and Wellness That Works from WW.
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