Zoom Forecasts Third-Quarter Profit Below Analyst Estimates
· Technology · Economic Times, Reuters
Zoom Communications has projected its third-quarter profit to fall below Wall Street expectations, citing intense competition from rivals like Microsoft Teams and Google Meet. The San Jose-based company expects adjusted profit between $1.46 and $1.48 per share, missing the average analyst estimate of $1.50 per share. Despite the lower profit forecast, Zoom reported second-quarter revenue of $1.28 billion, which exceeded market expectations. The company is currently attempting to boost customer acquisition by integrating AI tools, including its AI Companion assistant, into its enterprise services.
Why it matters
Zoom's struggle to maintain profit margins highlights the ongoing difficulty for video-conferencing platforms to differentiate their services in a highly competitive enterprise software market.
Read the original report — Economic Times
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