Shares of Zoom Video (NASDAQ: ZM) are down nearly 5% in premarket trading Tuesday after the company reported Q1 revenue forecast that missed analyst expectations.

Zoom posted Q4 2021 adjusted EPS of $1.29, up from $1.22 YOY and well above the consensus estimates of $1.07 per share. Revenue came in at $1.07 billion in the fourth quarter, up 21% YOY and above the analyst consensus of $1.05 billion.

For the current first quarter, Zoom expects adjusted EPS in the range of 86c to 88c, well below the consensus estimates of $1.03 per share. The company expects revenue in the range of $1.07 billion to $1.075 billion, missing the estimated $1.1 billion.

For the full-fiscal 2023 year, Zoom expects adjusted EPS in the range of $3.45 to $3.51 per share, below the estimated $4.40 per share. The company anticipates revenue between $4.53 and $4.55 billion for FY2023, compared to the analyst consensus of $4.75 billion.

“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,” said Zoom founder and CEO, Eric S. Yuan.

“Looking forward, we are addressing a large opportunity as we expect customers will continue to transform how they work and engage with their customers. It is apparent that businesses want a full communications platform that is integrated, secure, and easy to use.”

BofA analyst Brad Sills reiterated a Neutral rating and a $200.00 per share price target on Zoom stock.

"Q4 results and FY23 outlook suggest that reopening headwinds continue to weigh on growth. Record low q/q enterprise and online customer metrics suggest that churn continues to weigh on customer count… The broader slowdown in both new customer growth and expansion activity, and still heightened online churn is expected to stabilize in 2H as the pandemic cohort reaches the 15 month age point,” Sills said in a client note.

Oppenheimer analyst Ittai Kidron maintained a Perform rating.

“We remain neutral near-term given valuation and are waiting for better visibility into growth bottoming. This could potentially happen in 2HFY23 as churn stabilizes/newer products ramp, and also coincides with easier YoY comps for Meetings. Adjusting estimates for results/guidance,” Kidron wrote in a note.

Including the pre-open drop, Zoom stock price is now down nearly 80% from the all-time highs in October 2020.

By Senad Karaahmetovic | [email protected]