Zoom Faces Headwinds as Sales Growth Slows | The Salesmark

Zoom Faces Headwinds as Sales Growth Slows

Zoom Faces Headwinds as Sales Growth Slows

Zoom’s plunging sales growth is the latest sign that pandemic winners could be hitting a wall. 

In its earnings call Monday, Zoom said revenue grew 54% to hit $1 billion in Q2. While that’s impressive, the company reported 191% sales growth in Q1, and 369% the quarter before that. 

Big picture

When everyone was cooped up at home last year, Zoom provided a crucial lifeline for remote work, remote school, and—most cringingly—remote happy hours.

But apparently, nothing can beat the delicious awkwardness of trying to end a conversation in person. Like other pandemic-boosted companies such as Peloton, Zoom has started to lose momentum as offices reopen and people socialize IRL.

  • “What we’re seeing…is headwinds in our mass markets,” Zoom CFO Kelly Steckelberg told CNBC. “People are taking vacations again, they’re going to happy hours in person.”

Zoom’s stock fell 17% yesterday after investors got a peek into the company’s post-pandemic life.

Looking ahead

To sustain growth, Zoom plans to turn its software into a “destination app” that offers everything from group planning to document editing.

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