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Zoom’s Shares Tumbled 90% from its Pandemic Boom in 2020, as the Company Cut Down its Sales Forecast

Industry: Internet Services; Web Broadcasts & Cybercasts
Current: Company Performance

Zoom’s stock was down by approximately 10%, as the company slashed its annual sales forecast and reported its slowest quarterly growth
Zoom registered a revenue of $1,101.9 million in the third quarter
Zoom is making strategies to reinvest in new products such as the cloud-calling service Zoom Phone and conference-hosting offering Zoom Rooms

Zoom Witnessed Significant Growth in 2020 Due to the COVID-19 Pandemic & Global Lockdown

In 2020, businesses were compelled to implement work-from-home policies due to the COVID-19 pandemic. Zoom software usage increased 30 times in 2020 with the implementation of work-from-home policies, as millions of people were forced to work, learn, and socialize remotely. Zoom witnessed significant growth in share prices. The company registered significant revenue growth, up from $ 330.5 million in 2019 to $622.6 million in 2020.

Zoom also witnessed stiff competition from Microsoft and Google who raised their games significantly, to take advantage of the expanding revenue opportunity accelerated by the global pandemic.

Zoom Experienced Slower Revenue Growth in 2022 as COVID-19 Regulations Were Relaxed and Employees Returned to Office

Post lockdown, the company’s shares have fallen about 90% as the company’s investors struggle to adapt to a post-COVID world. Furthermore, Zoom's stock dropped 10%, after the company slashed its annual sales forecast and reported its slowest quarterly growth.

To deal with the tumbling revenue growth, the company is making strategies to reinvest in new businesses. The company is spending more on product development and marketing activities to develop products like the cloud-calling service zoom phone and conference-hosting offering zoom rooms. As a result, operating costs for the company increased by 56% in the third quarter of 2022.

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