Zoom the Covid-19 platform in the normalization stage

Zoom Video Communications had a strong second quarter, but will have a hard time comparing the growth of company a year ago.

Είναι κάπως κωμικό το γεγονός ότι τα τελευταία τριμηνιαία στοιχεία που κυκλοφόρησε η Zoom δεν ενθουσίασαν πολλούς αναλυτές, ειδικά αν σκεφτεί κανείς ότι οι τριμηνιαίες πωλήσεις της platformς ξεπέρασαν το 1 δισεκατομμύριο δολάρια για πρώτη φορά.

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 transitioning as a platform play aimed at large companies. CEO Eric Yuan said Zoom saw multiple upsells in the second quarter as companies add services like Zoom Phone and the company grows its developer ecosystem. THE acquisition of 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 start of the pandemic COVID-19".

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.