Zoom forecasts quarterly profit below estimates

Zoom Communications forecast third-quarter profit below Wall Street expectations on Tuesday, signaling stiff competition was squeezing the video-conferencing company even as it ramps up AI features on its ‌services.

Shares of ⁠the ⁠San Jose, California-based company fell 3.8% in ​extended trading.

Zoom has been rolling ​out AI tools, including an AI Companion assistant, a meeting receptionist assistant ​and its suite of enterprise-focused ⁠AI features ‌under "Zoom AI Services" to ​attract ​more customers.


But the company ⁠has been facing stiff competition from rivals such as Microsoft's Teams and Alphabet's Google Meet.

Zoom forecast third-quarter revenue in the range of $1.275 billion to $1.28 billion, compared with analysts' average estimate of $1.28 billion, according to data ‌compiled by LSEG.

The company forecast third-quarter adjusted profit between $1.46 and $1.48 ​per ​share, below ⁠analysts' average estimate of $1.50 per share.

The company posted second-quarter revenue of $1.28 billion, above analysts' ​average estimate of $1.27 billion, according to LSEG.

Second-quarter adjusted profit per share came in at $1.55, above analysts' average estimate of $1.48.