Zoom Video Communications Inc (NASDAQ:ZM)’s pandemic honeymoon period is seemingly over after the company announced a weaker than expected revenue forecast for the first quarter and full year.
Sales are expected to be between US$1.07bn and US$1.075bn in the first quarter, down on the US$1.1bn forecasted by analysts polled by Refintiv, according to CNBC.
Full-year revenue was forecasted to be US$4.7bn for 2023 but Zoom said it expects it to be anywhere between US$4.53bn and US$4.55bn.
Zoom has experienced a decline in the number of customers as pandemic fears have eased and employees have returned to the office.
The communication and video platform said it had 512,100 customers with over 10 employees in October, with that number falling to 509,800 by January.
Growth has slowed as a result from quarter to quarter, with revenue growing 21% year-on-year, but down on the 35% reported in the third quarter.
“Looking forward, we are addressing a large opportunity as we expect customers will continue to transform how they work and engage with their customers,” said chief executive and founder Eric S. Yuan.