Not An Easy BusinessĪccording to Bloomberg Intelligence analyst John Butler: With Microsoft Teams premium plans, customers get the virtual meeting app plus access to other Microsoft software. In June, the company introduced a new service bundle, the Zoom One, to promote its offerings like internet-connected phones and physical conference rooms.īut the biggest threat in this area is from the tech giant Microsoft (NASDAQ: MSFT), which offers attractive options for premium video conferencing. Zoom has branched into new lines of products, such as software for customer contact centers, to win over these clients. Zoom is trying to win larger enterprise clients to fuel growth in the post-pandemic environment. It also reduced its annual sales forecast to about $4.4 billion from its May projection of as much as $4.55 billion.Īnother concern for investors is that Zoom is finding it hard to grow its enterprise sales faster to make up for losses on its online sales. Fiscal second-quarter sales rose 7.6% to $1.1 billion, Zoom’s slowest year-over-year growth on record. In the company’s recent earnings report, this trend was evident. The San Jose, California-based company, which saw its sales explode during the pandemic as individuals and businesses flocked to video conferencing, is finding it hard to fuel growth in an environment where people are returning to their routines. The change in investors’ mentality isn’t without reason.
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