Zoom plunges 14% on revenue miss

Zoom shares fell 14% after the video communications company’s second-quarter results missed analyst’s revenue estimates.

Zoom saw $1.10 billion in revenue for the quarter. Analysts had expected $1.12 billion.

CFO Kelly Steckelberg said in a statement that poor sales, a strong U.S dollar, and Zoom’s revenue being negatively impacted by its online business affected the company.

The company lowered its projections for the full 2023 fiscal year.

Citi analysts also downgraded the stock and said Zoom’s outlook was worse than they anticipated.

Analysts from BTIG also downgraded shares of Zoom, citing the company’s reduced near-term expectations.

Zoom was a Covid-19 pandemic darling, but its growth has slowed as stay at home orders subsided.

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