Zoom sales growth slows as more people return to work

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Zoom Video Communications sales growth slowed last quarter as the extra demand for remote work and the company’s video-conferencing application eased, along with a pullback in the Covid-19 pandemic.

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The San Jose, Calif.-based company said its sales rose 35% from a year earlier to $1.05 billion for the three months ended Oct. 31. In the previous quarter, the company’s sales rose 54%. A year earlier, its sales jumped more than 360%.

ZOOM Cloud Meetings app is seen displayed on phone screen in this illustration photo taken in Poland on April 6, 2020. (Photo Illustration by Jakub Porzycki/NurPhoto via Getty Images) (Jakub Porzycki/NurPhoto via Getty Images / Getty Images)

Zoom’s net income for what is its fiscal third quarter rose more than 70% from a year earlier of $340 million. Wall Street analysts were projecting sales of $1.02 billion for the quarter and $337 million in net income.

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For its current quarter ending in January, Zoom expects total sales of between $1.051 billion and $1.053 billion, better than the $1.018 billion expected by Wall Street, according to FactSet.

TickerSecurityLastChangeChange %
ZMZOOM VIDEO COMMUNICATIONS, INC.242.28-9.02-3.59%

Zoom’s shares were little changed in after-hours trading near $242 a share.

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