Zoom Video Communications shares dropped as much as 9% in extended trading after the developer of video calling software revised its full-year sales and profitability outlook.
According to a statement, Zoom’s revenue increased 8% year over year in the second fiscal quarter, dropping from 12% growth in the prior quarter. Due to increasing spending on sales and marketing, Zoom’s net income decreased in the quarter from $316.9 million to $45.7 million.
At the conclusion of the quarter, the company reported having 204,100 enterprise clients, or business units that operate with Zoom’s direct sales teams, resellers, or partners. The increase from 198,900 three months prior is less than 3%. Enterprise clients contribute 54% of overall income. Customers of Zoom who conduct business online don’t deal with the company’s representatives, partners, or resellers directly.
Compared to its original projection for no increase in that area of the business, the company now anticipates a 7%–8% decrease in online business for the entire fiscal year. In order to focus on areas with a strong return on investment, such as research and development and sales operations, Zoom has revised its spending projections for the second half.
Image and article originally from www.insightssuccess.com. Read the original article here.