Fiscal second-quarter results late Monday from Zoom Video Communications were the toughest yet for the videoconferencing provider. Revenue for the quarter ended July 31 rose only 8% year over year to about $1.1 billion. That was about 2% below the midpoint of the company’s guidance range and missed Wall Street’s consensus forecast for the first time since Zoom went public in 2019. It also marked the first instance of single-digit growth on record for the company that brought videoconferencing to the homebound masses; Zoom has averaged 176% year-over-year growth over the previous eight quarters.
Zoom’s revenue forecast for the current quarter was also about 4% below analysts’ targets. In addition, the company trimmed its previous outlook for the full fiscal year ending in January, citing a mix of unfavorable exchange rates, weakness in its online business segment that serves consumers and small businesses, and a more typical pattern of closing sales deals for its enterprise side in the back half of the fiscal year. Its shares slid 8% after-hours Monday.