Spare a thought for Covid-19 sufferers this Thanksgiving who have to spend the holiday connecting with friends and family on Zoom. Spare another thought for Zoom Video Communications shareholders, who’ve watched while the stock has plummeted 87% from its pandemic highs as the company’s revenue growth has decelerated like a car hitting a sudden traffic jam. Sales grew just 5% in the most recent quarter, the company reported on Monday, compared with the pandemic-era growth rate of 367% in the same quarter two years ago. Zoom now has an enterprise value of just $17.4 billion and yet threw off $1 billion in cash in the first three quarters of this year. Those numbers make Zoom a standout acquisition target for either a rival company or a private equity firm.
Zoom Could Draw Suitors Even Though Customers Are Balking at Software Bundles
By| Nov. 23, 2022 5:00 PM PST
Photo: Erin Yuan of Zoom. Photo by Bloomberg.