As the pandemic slowed down, Zoom Video Communication, a video conferencing service company, recorded the lowest sales growth rate ever in the first quarter of this year.
Zoom announced on the 23rd (local time) that its sales in the first quarter (February to April) were 1.07 billion dollars, up 12% from the same period last year, the Wall Street Journal reported.
This is the lowest growth rate for the company’s sales.
Net income also fell to $113.6 million, half of the same period last year.
WSJ pointed out that Zoom’s sales growth continues to slow down as work life is normalized and demand for video conferencing gradually decreases.
Zoom predicted that sales growth would be less than 10% in the second quarter.
Zoom was one of the leading beneficiaries of the pandemic. As the office was closed due to the blockade, companies held business meetings using the company’s video conferencing applications.
Zoom’s stock price has also fallen this year amid weak IT stocks, falling more than 51 percent. In after-hours trading, it rose 14% at one time, but soon returned all the gains.
CEO Eric Yuanzoom said, “As many companies move to a hybrid (mixed) work system that combines telecommuting and work, we are shifting some of these products to support the type of work.”
Zoom is also trying to diversify its business beyond video conferencing by releasing ‘Zoom Phone’, a cloud-based phone business.
