Zoom’s latest quarterly release fell short of expectations, prompting BTIG to downgrade the stock. The company on Tuesday downgraded the video platform’s stock to buy-neutral and removed its $150 price target. The company’s shares fell 11% in pre-market trading following the report. Zoom reported earnings per share of $1.05, higher than the 94 cents Wall Street analysts expected, according to Refinitiv. However, revenue came in at $1.10 billion, missing the $1.12 billion analysts were looking for, according to estimates from Refinitiv. The company also cut its financial outlook for 2023, calling for earnings per share to range from $3.66 per share to $3.69 per share. This fell from the previous guidance of $3.70 per share to $3.77 per share. The new forecast is also below Refinitiv’s estimate of $3.76 per share. “Continued success in the Enterprise segment as evidenced by a better-than-expected net 200, $100k increase in $100k customer base (37% increase) and 18% growth in total Enterprise customers to 204.1k, but were overshadowed by future prospects for a high single-digit decline in the Online business and continued pressure in EMEA,” said analyst Matt VanVliet written on Tuesday. He added: “Overall, the decline in earnings in FY23 and FCF is somewhat worrisome given the slowdown in upline growth, and therefore we are downgrading ZM’s stock to Neutral. due to a significant drop in short-term expectations,” he added. Going forward, Zoom’s business growth expectations remain above 20%, and some of its new products will have encouraging early momentum. Still, there’s cause for concern, according to VanVliet. “The [contact center as a service] The market is crowded and technically complex, and we’re not sure Zoom’s early platform will have the same widespread success that Zoom Phone did later this year, VanVliet said. into this report.