Why is Zoom forecasting lower profits?

Zoom is forecasting lower profits due to intense competition from rivals and a cautious spending environment.

Which companies are competing with Zoom?

Companies like Microsoft's Teams and Alphabet's Google Meet are significant competitors to Zoom.

What is Zoom's revenue outlook for the first quarter?

Zoom expects first-quarter revenue to be between $1.22 billion and $1.23 billion.

Home / Business and Economy / Competition Squeezes Zoom's Profit Forecast

Competition Squeezes Zoom's Profit Forecast

26 Feb

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Summary

Zoom forecasts quarterly profit below expectations due to competition.
Rivals like Microsoft Teams and Google Meet offer bundled, cheaper alternatives.
Slowing growth noted as pandemic work-from-home trends decrease.

Competition Squeezes Zoom's Profit Forecast

Zoom Communications (ZM.O) projected its first-quarter profit will fall short of analyst expectations, citing intense market competition and a cautious economic climate.

The company's shares saw a dip in extended trading following the announcement. Zoom is experiencing significant pressure from rivals like Microsoft's Teams and Alphabet's Google Meet. These competitors often provide bundled workplace suites that present a more economical choice for enterprise clients.