Zoom Video Communications Inc. declined about 5 per cent in extended trading after reporting its slowest quarterly sales growth on record and slightly reduced its full-year revenue forecast.

Revenue increased 5 per cent to US$1.1 billion, in line with analysts’ average estimate. For the full year, the software company reduced its sales forecast to as much as US$4.38 billion from its August projection of as much as US$4.4 billion.

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The full-year sales guidance issued Monday assumes that Zoom’s enterprise business will grow more than 20 per cent while revenue from online consumer and small business customers will decline about 8 per cent, Chief Financial Officer Kelly Steckelberg said in remarks prepared for a conference call with analysts. In a sign the enterprise business remains steady, Zoom reported quarterly profit that exceeded Wall Street estimates and raised its full-year earnings forecast.

Zoom, which burst into public consciousness during the height of the pandemic, is fighting to reverse a slowdown in growth for its video communications service by expanding its tools for business. At its annual user conference earlier this month, it unveiled email and calendar services, which it hopes will keep more workers on the platform. 

“We drove revenue above guidance with continued momentum in enterprise,” Chief Executive Officer Eric Yuan said in the statement, highlighting better-than-expected profit. But the company continues to be affected by currency fluctuations and “heightened deal scrutiny for new business,” he said on the call.

Zoom shares, which have been hovering close to pre-pandemic prices, declined to a low of US$74.73 in extended trading after closing at US$80.26 in New York. The stock has dropped 56 per cent this year.

In the period ended Oct. 31, the company said it had 209,300 enterprise customers, an increase of 14 per cent from a year earlier. Analysts, on average, projected Zoom would report 210,105. Large businesses make up a growing share of Zoom’s revenue as it loses consumers and small businesses.

The company said churn among consumers and small businesses has begun to stabilize. Average monthly churn among online customers was 3.1 per cent in the fiscal third quarter, down from 3.7 per cent in the same period last year.

Zoom said it had 3,286 customers contributing more than US$100,000 in trailing 12 month revenue, an increase of 31 per cent from the period a year earlier.

Fiscal third-quarter profit, excluding some items, was US$1.07 a share, the San Jose, California-based company said in a statement. Analysts, on average, projected 83 cents a share. Full-year earnings will be as much as US$3.94 a share, the company said, an increase from Zoom’s August forecast of as much as US$3.69 a share.