Zoom Video Communications Inc’s third-quarter income progress charge slowed to 35 p.c as demand for its video-conferencing instruments eased from the pandemic-fuelled heights final 12 months, sending its shares down about 6 p.c on Monday.

Revenue was at $1.05 billion (roughly Rs. 7,830 crore) within the quarter ended October 31, Zoom stated, after rising 54 p.c within the earlier quarter and surging 360 p.c a 12 months earlier.

The inventory, a pandemic winner, fell to $227.5 (roughly Rs. 17,000) in prolonged buying and selling, after having misplaced about 28 p.c this 12 months.

Moreover, stiff competitors posed by Cisco’s conferencing software Webex and Microsoft’s Teams has made it difficult for Zoom to win over enterprise prospects.

To retain its customers, the corporate launched quite a lot of new choices corresponding to Events platform, the place companies can host large-scale conferences, cloud-calling service Zoom Phone and in-office conferences function Zoom Rooms.

“Their Rooms and Phone businesses are 5 percent penetrated or below and that seems to imply plenty of remaining runway for growth even within their existing capabilities only,” stated Joe McCormack, senior analyst at Third Bridge stated.

Investment bankers and analysts have warned that Zoom faces a number of hurdles in sustaining progress after its $14.7 billion (roughly Rs. 1,09,560 crore) bid to purchase name centre software program agency Five9 fell by.

Still, Zoom reported an adjusted revenue of $1.11 (roughly Rs. 82) per share, beating Wall Street’s estimates $1.09 (roughly Rs. 81) per share, in keeping with Refinitiv knowledge.

The firm additionally forecast current-quarter income and earnings above expectations, and raised its full-year income estimate to round $4.08 billion (roughly Rs. 30,420 crore) from about $4.01 billion (roughly Rs. 29,900 crore) earlier.