Investors Dumping Zoom As Growth Slows

Investors Dumping Zoom As Growth Slows

The developer of online service for video communication Zoom Video Communications reported for the third quarter of 2022 financial year. Results were slightly better than expected, although the rate of revenue growth has slowed down significantly. On the postmarket, the company's shares fell by 6%, to 227 $.

What changed

Compared to last year, Zoom's revenue grew by 35%, up to a billion dollars. This is the slowest growth rate since 2018. For comparison: at the end of last year and the beginning of this year, revenue increased by 350-370%.

Most of the growth in revenues from large companies. Zoom now has 2,500 clients, each of which brings more than 100 thousand dollars a year. It's on 94% more, than a year ago. But the number of small customers grew by only 18%, up to 512 thousand.

Compared to last year, net profit increased by 72%, up to 340 million, adjusted net profit — on 14%, up to 338 million dollars.

Zoom sales began to grow rapidly in the midst of a pandemic in the spring of 2020. Then the companies, schools and institutes sent employees and students to a distance, and for communication began to use Zoom. Now, as quarantine restrictions are lifted, revenue growth has begun to slow down.. As predicted by Zoom, in the next quarter, sales will increase even less - by 19%.

To find another point of growth, Zoom за 15 млрд долларов хотел купить Five9 — разработчика ПО для колцентров. Later found out: сделка не состоится, а Zoom в 2022 году разработает собственное ПО.

Инвесторы давно закладывают замедление роста выручки в цену акций компании. С октября 2020 года, когда бумаги на максимуме стоили 580 $, акции подешевели уже на 60%, to 227 $. Index S&P 500 за аналогичный период прибавил около 35%.

Investors Dumping Zoom As Growth Slows

Выручка Zoom и прогноз на четвертый квартал, million dollars

1к2020122 (+103%)
2к2020146 (+95%)
3к2020167 (+86%)
4к2020188 (+77%)
1к2021328 (+169%)
2к2021664 (+355%)
3к2021777 (+365%)
4к2021882 (+369%)
1к2022956 (+191%)
2к20221021 (+54%)
3к20221051 (+35%)
4к20221052 (+19%)

122 (+103%)

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