(Reuters) -Zoom Communications forecast revenue for the full year and the first quarter below Wall Street estimates on Monday, in a sign of weak demand for its wide range of conferencing tools as employers gradually move away from hybrid work models.
The company’s shares were down 2.5% to $79.40 in extended trading.
Zoom had seen rapid growth in users and subscribers during the pandemic-induced lockdowns, but doubts have been raised over the sustainability of the current demand for video conferencing.
In January, U.S. President Donald Trump ordered federal workers to return to the office five days a week.
Big firms such as JPMorgan Chase, Amazon and AT&T have also asked employees to return to office five days a week.
Zoom’s latest earnings report reinforces concerns that the company is struggling to reaccelerate growth, said Jeremy Goldman, senior director of briefings at Emarketer.
The company also faces stiff competition from Microsoft’s collaboration software Teams.
Zoom expects fiscal 2026 revenue between $4.79 billion and $4.80 billion, compared with the average analyst estimate of $4.81 billion, according to data compiled by LSEG.
The company forecast first-quarter revenue in the range of $1.16 billion to $1.17 billion, below estimates of $1.18 billion.
(Reporting by Juby Babu in Mexico City; Editing by Shounak Dasgupta)
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