Shulou(Shulou.com)11/24 Report--

On November 23, according to foreign media reports, the share price of Zoom, a video conference company, has plummeted by about 90% from its peak in October 2020, and the former darling of the investment community is trying to adapt to the post-epidemic era.

The day before yesterday, Zoom reported results for the third quarter of fiscal 2023, in which revenue rose 5 per cent year-on-year to $1.102 billion, the slowest revenue growth ever. Affected by the fading of the epidemic dividend and increased competition, the company slightly cut its full-year revenue forecast, then the company's share price fell nearly 10%, prompting at least six brokerages to lower their price targets.

Due to the outbreak of COVID-19 's epidemic in 2020, online learning and office work led to a surge in ZOOM business, but as the epidemic dividend receded and competition intensified, the company had to expand new business to reverse the slowing growth of its video communications services. The company is trying to focus on its enterprise business, including products such as cloud call service Zoom Phone and conference hosting service Zoom Rooms.

Yuan Zheng (Eric Yuan), chief executive of Zoom, said on the earnings call that the macroeconomic environment poses challenges for the company and that the company will also face foreign exchange pressure, so the transaction review of the new business will be more stringent.

At its annual user meeting earlier this month, Zoom launched email and calendar services, hoping to retain more customers. However, analysts believe it will take several quarters for the business to improve because of a slowdown in growth in its main online business and increasing competition from the Microsoft Corp team, Cisco Webex and Salesforce Slack. And Zoom has a fundamental flaw, that is, it takes a lot of spending to maintain market share.

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