Zoom Muddles Along, Moves the Goalposts

Here's our initial take on Zoom Communications' (NASDAQ: ZM) fiscal year 2025 fourth-quarter results.Zoom's growth problems in recent quarters continued through the end of fiscal 2025 (ended Jan. 31, 2025). One of the leading companies in providing video communications software and services for businesses large and small reported another quarter of paltry growth, with Q4 revenue up just over 3% year over year.Zoom also reported continued weakness and churn in its enterprise business. While enterprise revenue was up 6% year over year, and the number of customers spending $100,000 annually increased 7%, there is clear weakness more broadly. Since transitioning some of its enterprise customers to online sales at the end of last fiscal year, Zoom's enterprise customer count growth has almost ground to a halt, up about 1% since the end of the first quarter, while its net dollar expansion rate for enterprise customers has fallen to 98%, indicating that the overall spending from Enterprise customers is shrinking, based on annualized recurring revenue.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool