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Enterprise slowdown at Zoom Video continues, says Needham

Needham keeps a Hold rating with no price target on Zoom Video after its Q2 results. Revenue topped the high end of guidance but the management guided inline Q3 revenue as challenges – notably, international – continue, the analyst tells investors in a research note. While Zoom management noted strong R&D investments being made in Contact Center and AI products that will become key growth drivers in 1-2 years, the firm’s Hold rating remains pending a clearer line of sight to sustained double-digit enterprise sales growth, Needham added.

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