Zoom Video Communications had a strong second quarter, but will have a hard time comparing the growth of company a year ago.
It's kind of comical that Zoom's latest quarterly numbers didn't excite many analysts, especially when you consider that its quarterly sales platforms surpassed $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 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 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's no surprise that Zoom's stock price is down 15% after a solid quarter. THE Wall Street tries to understand what normalization means for Zoom while weighing the promise of the platform and its sales with corresponding big companies.
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… ..