Published - Mar 1, 2022 @ 04:01 PM (EET)

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Shares of U.S. communications technology company Zoom Video Communications Inc. (NASDAQ:ZM) slid more than 11.8% during Monday's after-hours session despite posting stellar quarterly results.

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Results beat both the earnings and revenue front, totaling $1,071.4 billion in fourth-quarter revenue, a 21% year-over-year increase backed by strength in its global customer base. In addition, the company reported full fiscal year revenue of $4.1 billion, up 55% year-over-year.

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However, the company's guidance for Q1FY23 and FY23 fell short of analyst expectations. Perhaps the most worrisome, was full-year fiscal 2023 revenue guidance for between $4.53 billion and $4.55 billion, which would be up just 10% to 11% from fiscal 2022's final number.

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For the current first quarter, Zoom expects adjusted EPS in the range of 86c to 88c, well below the consensus estimates of $1.07 per share. Zoom expects adjusted EPS between $3.45 to $3.51 per share for the full-fiscal 2023, also below the estimated $4.40 per share.

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"In fiscal year 2022, we delivered strong results with total revenue of more than $4 billion growing 55% year over year, along with increased profitability and operating cash flow growth as our global customer base continued to grow and find new use cases for our broadening communications platform." - Founder and CEO, Eric S. Yaun of Zoom.

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The company that was the most visible of the pandemic-induced need for services to allow people and corporates connect may have to reinvent itself following its fourth-quarter results that prove the growth surge is over.

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Zoom has struggled to maintain its growth as more employees return to work in their offices and, without substantial future growth, investors are reevaluating how they perceive Zoom's future.

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Consequently, Zoom's stock price has declined by 75% from an October 2020 high to yesterday's New York close of $132.60, underscoring investors' skepticism.

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To invest in Zoom's stock visit MEXEM.

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