‘Macro Dynamics’ Spur Zoom to Trim $150M Off Its Full-Year Guidance
Zoom is "not immune" to the “global downturn,” but the situation is “more complex than meets the eye,” said Chief Financial Officer Kelly Steckelberg on an earnings call Monday for fiscal Q2 ended July 31. Total revenue for the quarter…
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was just under $1.1 billion, up 8% year over year, she said. “The headwinds we saw mainly relate to the strengthening dollar, new online subscriptions and, to a lesser extent, bookings linearity,” said Steckelberg. “We have implemented initiatives focused on driving new online subscriptions, which have shown early promise, but were not enough to overcome the macro dynamics in the quarter.” Senior Zoom management recognizes that the revenue results “are disappointing and below our expectations as we navigate the current environment,” said the CFO. Zoom now expects to exit fiscal 2023 on Jan. 31 with full-year revenue of $4.39 billion to $4.4 billion, which would be about 7% year-over-year growth, said Steckelberg. At the midpoint of the guidance, that would be a decrease of about $150 million compared with Zoom’s previous full-year guidance, she said. About $35 million of that decrease will be due to the stronger dollar, the rest to the “broader macroeconomic environment,” she said. The stock plunged 16.5% Tuesday, closing at $81.32.