Zoom’s revenue growth slows as more people go back to work

Zoom Video Communications’ revenue growth slowed in the quarter as additional demand for remote work and the company’s video conferencing application waned, along with a slump in the Covid-19 pandemic.

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The San Jose, California-based company said its revenue increased 35% from a year earlier to $1.05 billion for the three months ended Oct. 31. In the previous quarter, the company’s revenue increased by 54%. A year earlier, sales were up more than 360%.

The ZOOM Cloud Meetings app is displayed on the phone screen in this illustration photo taken in Poland on April 6, 2020. (Photo illustration by Jakub Porzycki/NurPhoto via Getty Images) (Jakub Porzycki/NurPhoto via Getty Images/Getty Images)

Zoom’s net income for what is its fiscal third quarter was up more than 70% from a year earlier, at $340 million. Wall Street analysts forecast revenue of $1.02 billion for the quarter and net income of $337 million.

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For the current quarter ending in January, Zoom expects total revenue of between $1.051 billion and $1.053 billion, better than the $1.018 billion Wall Street expects, according to FactSet.

ticker Safety Last Change Change %
ZM ZOOM VIDEO COMMUNICATIONS, INC. 242.28 -9.02 -3.59%

Zoom’s shares had changed little in after-hours trading near $242 a share.

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