Zoom Video Communications had a strong second quarter, but it will be difficult if one compares the growth of the company a year ago.
It's somewhat comical that the latest quarterly data released by Zoom did not excite many analysts, especially considering that the platform's quarterly sales exceeded $ 1 billion for the first time.
Zoom's outlook for third-quarter revenue of $ 1,015 billion to $ 1,02 billion, up 31 percent from last year, was stable and showing signs of normalization. In other words, Zoom growth will slow throughout the 2022 fiscal year compared to a year ago.
Zoom is clearly going to be a platform game for large companies. CEO Eric Yuan said Zoom saw multiple upsell offerings in the second quarter as companies added services such as Zoom Phone and the company was developing its developer ecosystem. Acquiring Five9 will also help the cause of the platform.
Oppenheimer analyst Ittai Kidron said: "There are now signs of normalization after a period of astronomical growth since the onset of the COVID-19 pandemic."
Kelly Steckelberg CFO of Zoom said that normalizing demand will be an ongoing issue.
It is important to note that as soon as we completed our first quarterly comparison on an annual basis since the beginning of the pandemic, we saw customers return to more thoughtful, measured buying patterns. While revenue, profits and cash flows were strong in the second quarter and first half, other measurements began to normalize, especially compared to unprecedented annual rates.
So it is no surprise that the price of Zoom shares fell by 15% after a steady quarter. Wall Street is trying to figure out what normalization means for Zoom while weighing in on the platform and its sales promise with similar big companies.
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These economists / stockbrokers will drive us crazy….
That is why with greed and hollow-headedness and they take us from one crisis to another…
1 billion profits and they tell you you are not doing well… you have no future… because you will just continue to make profits only 1 billion !!!!!
And then we ordinary people wonder what is wrong… ..