In the fourth quarter, which ended on January 31, Zoom's revenue was $1.18 billion, in line with forecasts. Adjusted earnings per share reached $1.41, exceeding analysts' expectations of $1.30. However, the forecast for the first quarter of the next fiscal year suggests revenue in the range of $1.16-$1.17 billion, which is below the average estimates of $1.18 billion. The annual revenue forecast is $4.79-$4.80 billion, also falling short of the expected $4.81 billion.
Previously, Zoom demonstrated rapid growth amid the pandemic, when many companies switched to remote or hybrid work formats. However, recent initiatives, such as US President Donald Trump's decree to return federal employees to offices five days a week, as well as similar steps by large corporations, including JPMorgan Chase, Amazon and AT&T, call into question the sustainability of demand for video conferencing services. Despite this, Zoom CEO Eric Yuan said he is not concerned about employees returning to offices.
Zoom continues to face stiff competition from platforms such as Microsoft Teams. In response, the company plans to launch an updated version of its AI companion in April, aimed at automating workflows with individual agents. However, analysts note that the integration of artificial intelligence has not yet yielded significant results and requires further investment.
Despite the current challenges, Zoom continues to adapt to changing market conditions, investing in new technologies and expanding the range of services offered.