Zoom positively surprised with the results, but the company faces a number of challenges

In the post-pandemic world, Zoom is affected by business problems, and its shares have fallen by over 80 percent. in the last two years. However, Q213 results provided investors with relief, showing signs of customer retention and earnings that beat market expectations. Zoom reported that it ended the fourth quarter with 12. customers, which means a jump of XNUMX percent. compared to the previous year.

The results are better than expected, but there are still problems

The macro environment is holding back Zoom's growth, but the results show that the potential has not been completely exhausted and that its software may still be essential for enterprises. Investors are positive about the forecast of full-year profits, which far exceeded expectations Wall Street – they are valued at the level of USD 4,11-4,18 compared to the assumed USD 3,53.

Zoom is doing what it can in trying to operate in such a macro environment: laying off employees to protect margins, presenting new offers such as a telephone and contact center to attract new customers. While this forecast will please investors in the short term, not everything will be that simple. With limited growth, fierce competition from rivals such as Microsoft and a slowdown in corporate budgets, Zoom looks set to face another tough year.

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JoshGilbert - market analyst in eToro. He has over 6 years of experience in various positions in financial services. A documented history of work in the financial services industry, consistent achievement of above-average commercial goals led to rapid promotion and internal recognition. He specializes in financial writing, media, risk management, sales, financial markets, CFDs, Forex and stocks