Zoom Video Communications Inc (NASDAQ:ZM) stock plunges 14.72% (As on August 23, 11:23:03 AM UTC-4, Source: Google Finance) after the company pared back its full-year forecast for earnings and revenue. The second fiscal quarter ended on July 31. Zoom’s net income fell to $45.7 million in the quarter from $316.9 million in the year-ago quarter as the company increased spending on sales and marketing. The company said at the end of the quarter it had about 204,100 enterprise customers, which are business units that Zoom’s direct sales teams, resellers or partners work with. That’s up less than 3% from 198,900 three months earlier. Enterprise customers deliver 54% of total revenue. Online business customers are Zoom customers that don’t work directly with Zoom salespeople, resellers or partners.

ZM in the second quarter of FY 23 has reported the adjusted earnings per share of $1.05, beating the analysts’ estimates for the adjusted earnings per share of 94 cents, according to Refinitiv. The company had reported the adjusted revenue growth of 8 percent to $1.10 billion in the second quarter of FY 23, missing the analysts’ estimates for revenue of $1.12 billion.

Zoom called for adjusted fiscal third quarter earnings of 82 cents per share to 83 cents per share on $1.095 billion to $1.100 billion in revenue. Analysts polled by Refinitiv had been looking for 91 cents in adjusted earnings per share and $1.15 billion in revenue.

Management lowered its projections for the full 2023 fiscal year, calling for $3.66 to $3.69 in adjusted earnings per share and $4.385 billion to $4.395 billion in revenue, implying 7% growth at the middle of the revenue range. Analysts whom Refinitiv surveyed had expected $3.76 per share in adjusted earnings and revenue of $4.54 billion. The view three months ago was $3.70 and $3.77 in adjusted earnings per share and revenue ranging from $4.530 billion to $4.550 billion. Economic conditions primarily caused executives to revise their view.

The company expects the online business to be down 7% to 8% in the full fiscal year, compared with its forecast for no growth in that part of the business earlier. Zoom has changed its spending expectations for the second half to prioritize areas with a high return on investment, such as research and development and sales operations.

Meanwhile, in the quarter, Zoom announced a new pricing structure called Zoom One and said it had agreed to acquire conversational artificial-intelligence software startup Solvvy.