Zoom faces stiff competition.

On Monday, the American video service predicted sales below expert expectations for the 2023 financial year, sending its shares down 12 percent in after-hours trading.

In the past quarter, sales increased by 21 percent to 1.07 billion dollars, slightly more than expected.

Zoom continued to benefit from the trend towards hybrid working between office and home office, but can no longer match the strong growth seen at the beginning of the corona pandemic.

For fiscal year 2023, the company is now predicting sales of between $4.53 billion and $4.55 billion.

Here, however, analysts expected 4.71 billion.

Big competition

For many people working from home, zoom has become synonymous with video conferencing, which employees use to exchange information and talk to customers or for students to network with teachers.

However, the competition is particularly fierce in the corporate customer market, where corporations such as Cisco, Microsoft and Slack from Salesforce are also competing for subscribers.

A blow to Zoom was the failed takeover of call center provider Five9 for around $15 billion.

In the struggle for corporate customers, Zoom has recently expanded its range to include a conference platform and cloud telephony.

Zoom has fallen significantly on the stock market in the past twelve months.

The paper had lost around 67 percent by the end of last week.