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Stock Market
23 Nov 2021
Zoom Stocks Slump as Client Addition Slows
The Index Today
In Tuesday’s premarket trading, Zoom stocks fell short by 8% after new client addition numbers failed to meet the expected forecast for the quarter.
The company reported an increase of 18% with additional 10 new employees, totaling to 512,100 customers. Growth in users was 36% for the second quarter which point towards the company’s inability to keep growth at the same levels seen during the early pandemic.
During the pandemic, zoom became a popular video-conferencing program as work-from-home demands increased. However, the programs ability to increase users and remain popular in the long run is being questioned as rivals such as Google and Microsoft offer more services. Zoom gave users new services which include the Zoom Phone, a cloud-calling service and Zoom Rooms, designed for in-office meetings. Such additions were aimed at increasing overall user base. Sales for the third quarter were recorded at $1.05 billion, reflecting an increase of 35%.
©Photo: REUTERS/Dado Ruvic/Illustration
