By Owen Tucker-Smith

Analysts are unimpressed with Zoom's growth, and the video conferencing platform's stock is suffering for it.

The company reported revenue guidance on Monday afternoon that missed expectations, and shares slid 8.5% in Tuesday trading. Citi analysts noted that while revenue grew 3% during the quarter, Zoom's outlook indicated "no re-acceleration in growth for the year despite several growth levers."

"We expect shares to trade down slightly with no near-term catalyst for growth re-acceleration in FY26," the Citi analysts wrote.

UBS analysts called the outlook "disappointing;" Benchmark called it "a yawner." Others were more generous: Baird analysts said the first-quarter guidance was "slightly light" but said it expects the full-year guidance to prove conservative.

-- Zoom expects revenue in the first quarter between $1.16 billion and $1.17 billion, missing consensus, the Benchmark analysts wrote, noting "some frustration over the modest pace of continued innovation." Analysts said the guidance was unlikely to heat up the stock, with Baird arguing that "reaccelerating revenue growth in the future, even slightly, could serve as a catalyst for shares."

-- Zoom's stock has fallen more than 9% this year and 17% over the past three months. The company has leaned into artificial intelligence as a driver of growth, but shares of the company have dropped significantly since the pandemic as workers have returned to the office and relied less on video conferencing.

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(END) Dow Jones Newswires

February 25, 2025 16:07 ET (21:07 GMT)

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