The sales are declining.
The declining sales growth rate comes after the pandemic-induced surge in business that Zoom experienced as offices shut and remote work ramped up. Now that more offices are resuming in-person workdays, the need for the popular videoconferencing service is waning.
Once a pandemic darling, Zoom has fallen from its peak during the height of the coronavirus pandemic. Its shares have declined in recent weeks, part of a broader selloff that has been prompted by a flurry of concerns over a potential recession, elevated inflation, the continuing war in Ukraine and pandemic-related lockdowns in China.
I can’t comment on the specifics, and I wonder if Ukraine or Russia were significant markets for Zoom. However, Zoom has excellent call quality, and I pity it wasn’t explored for telemedicine in a broader context. Microsoft and Google responded through “Teams” and “Meet” respectively, but they remain subpar. Users reported “zoom-fatigue” and it pivoted to “whiteboards” and “collaborative tools”. Microsoft has horrendous UI/UX, and I fail to comprehend how they planted themselves as default options across enterprises. Teams is confusing to operate, though. It is currently being used to conduct interviews (and as again) it is recommended time and again that “video be switched off” to save bandwidth. Zoom had worked well on its algorithms, and I barely ever saw a stutter or slowdown.