NASDAQ ZM FINANCIALS FULL

'And as they are adjusting to the environment and figuring out how the future of work is going to be for them individually, We expect that to be the challenging headwind.'

'We're still having these online customers which are the most volatile many of them are still on monthly contracts,' Steckelberg said.

Speaking on a conference call on Monday, Zoom Chief Financial Officer Kelly Steckelberg acknowledged some of the issues the company expects to face in the coming year.

Just last week, Apple (NASDAQ: AAPL) said its employees would begin coming back to company offices starting Feb. This could, in theory, result in less usage of Zoom's ( ZM) video services since workers would be meeting more often in person. More companies are planning on having their employees returning to the office on at least a part-time basis in early 2022.

It's no surprise what's behind Zoom's ( ZM) growth issues.

That growth forecast looks even more striking when noting that it is barely higher than the $1.051 billion Zoom ( ZM) reported for its third quarter, which was 35% higher than year-ago period.

The company said that for its current, fiscal fourth quarter, it expects revenue to grow just 19% over the same period a year ago, to between $1.051 billion $1.053 billion.

The issue was Zoom ( ZM) forecasting more growth ahead, but not at the levels that have driven its business over much of the last two years.

Zoom ( ZM) suffered from a case of the company not being able to win for losing.

At that price, Zoom's market cap of $59.6 billion has fallen by approximately $77 billion over the past 13 months.

On Tuesday, Zoom's ( ZM) shares plunged more than 16%, to around $200 a share.

19, 2020, the company's stock price hit an all-time high close of $568.34 a share. And that need for reliable communications technology in order for people to do their jobs drove demand for Zoom's ( ZM ) services so much that on Oct.

Zoom Video Communications (NASDAQ: ZM) might have been the poster child for tech companies that saw business boom during the Covid-19 pandemic as millions of employees worldwide fled their offices and began working at home.

The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines. On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. This strategy to makes sense, particularly when the company’s CEO is taking the medicine as much as his employees. Thus, Zoom is making it clear that looking forward to the future is the only way to go. Any sort of tailwinds provided by the pandemic are now gone. We’re no longer talking about the pandemic. That’s something long-term value investors are going to like. By ensuring its productivity metrics are in order, Zoom appears to be setting up for a prolonged period of profitable growth. The video conferencing company is profitable, but investors will likely want to see sustainable earnings growth over time. The CEO’s pay cut aside, this significant layoff should considerably improve Zoom’s financial position. Indeed, this sort of action isn’t common in corporate America, although it should be. Instead of putting the salary savings in his own pocket, he’s signaling to existing employees that it truly was a painful decision.

NASDAQ ZM FINANCIALS FULL

Personally, I think it’s important to touch on the fact that Zoom’s CEO and founder is taking full responsibility for cutting jobs. Zoom Layoffs Result in Surging Stock Price Let’s dive more into what investors may want to make of this news today. He has cut his pay by 98% and eliminated his bonus for the year, clearly empathizing with the employees he was forced to lay off. Notably, Zoom’s founder and CEO Eric Yuan is also taking the company’s previous over-hiring mistakes seriously.

Thus, seeing other peers trim headcounts while maintaining profitability has given companies like Zoom the ability to become more productive with existing resources.

This led to a cost-heavy business model that has weighed on its financials. Essentially, Zoom scaled up too quickly following the pandemic. Like other competitors who have announced significant layoffs in recent months, the rationale for these job cuts are roughly the same.

That will lead to marked reductions in costs for Zoom moving forward. About 1,300 employees are expected to be let go, or around 15% of Zoom’s workforce. Shares of ZM stock are up roughly 7% today after the company announced layoffs. The latest company to surge after announcing job cuts is Zoom (NASDAQ: ZM).

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