Zoom tempers annual profit, revenue outlook as demand falters

Zoom Video Communications Inc on Monday cut its annual profit and revenue forecasts as demand for the video-conferencing platform cools off from pandemic highs, sending its shares down over 7% in extended trading.

Analysts have raised concerns about the company’s prospects as competing platforms such as Microsoft’s Teams, Cisco’s WebEx and Google’s Meet fight for video-conferencing market share.

Zoom has an uphill task onboarding large clients, which contribute more than $100,000 in revenue, to sustain its pandemic-levels of growth at a time when companies are struggling with decades-high inflation.