Zoom Is Facing 1 Headwind That Could Challenge Its Return to Growth
When I purchased shares of Zoom Video Communications (NASDAQ: ZM) in late 2021, I knew its growth wouldn't be as good as it had been in 2020 and early 2021. However, I believed the adoption of Zoom's other products -- Phone, Rooms, and (later) Contact Center -- would provide enough of a runway for it to still be a good investment.
It's now 2024, and while adoption of Zoom's other products has been great, its top-line growth has disappointingly been almost nonexistent. Revenue in its fiscal 2024 third quarter was only up 3.2% year over year.
On Jan. 11, Zoom CFO Kelly Steckelberg spoke at the 26th Annual Needham Growth Conference. She made some comments that might explain why revenue growth is meager even though product adoption is strong. And it's something that could truly challenge the company's return to more robust top-line growth in the coming year.
Source Fool.com
