Zoom forecasts 3rd-quarter profit and revenue that miss estimates
Zoom forecast third-quarter adjusted profit below Wall Street expectations, now expecting $1.46 to $1.48 per share instead of the $1.50 analysts had hoped for.
Revenue is also coming in a bit light, with Zoom forecasting third-quarter revenue in the range of $1.275 billion to $1.28 billion, compared with analysts' average estimate of $1.28 billion.
Zoom shares fall 3.8% after-hours
After announcing the lower forecast, Zoom's stock dropped 3.8% in after-hours trading.
The company is feeling pressure from rivals like Microsoft Teams and Google Meet, so it's doubling down on new AI tools, including an AI Companion assistant, a meeting receptionist assistant and its suite of enterprise-focused AI features under "Zoom AI Services," to keep users interested.
Even with these challenges, Zoom actually beat expectations last quarter with stronger-than-expected revenue and profits, but growth remains a challenge as competition ramps up.