Zoom Video Communications has lowered its annual revenue forecast amid waning demand for the video conferencing platform.
Zoom, which competes with WeChat Work, Microsoft Teams, Cisco WebEx and Slack, is facing a slowdown as inflation is dampening the spending power of customers.
Zoom Video Communications said revenue is expected to be between $1.095 billion and $1.105 billion for the fourth quarter fiscal year 2023.
Zoom expects annual revenue to be between $4.37 billion and $4.38 billion, compared with an earlier outlook of $4.39 billion and $4.40 billion.
Zoom Video Communications, however, raised its adjusted profit per share to between $3.91 and $3.94, compared with $3.66 to $3.69 forecast earlier.
Zoom Video Communications said revenue for the third quarter ended Oct. 31 rose 5 percent to $1.1 billion.
“In the third quarter, we drove revenue above guidance with continued momentum in Enterprise,” said Zoom Video Communications CEO Eric Yuan.
Zoom Video had 209,300 (+14 percent) enterprise customers at the end of the third quarter of fiscal year 2023. Zoom said 3,286 customers contributed more than $100,000 (+31 percent) in trailing 12 months revenue. Online average monthly churn was 3.1 percent for Q3, down 60 bps from the same quarter last fiscal year.