Zoom shares tumble as revenue growth slows
By
The company on Tuesday posted a better than expected
third-quarter revenue of
"With topline growth still weighed down by weakening trends in the micro segment from pull-forward and temporary pandemic business, we look for a clear line of sight to the growth trough," said brokerage Needham.
Zoom's addition of new customers with over 10 employees also grew at its slowest pace at 18%, below pre-pandemic levels when the company was not yet a household name.
The company's growth at small and medium businesses might be
saturating, while it has barely penetrated the large enterprise
market,
However, developing it into a contact center product will
take longer after its
Shares of Zoom fell about 14% to
"For now, investors will need some patience as we do not see any upcoming catalysts that would change the sentiment on the stock," Evercore analysts wrote in a note.
(Reporting by