Zoom Video Communications, Inc. (NASDAQ:ZM) shares closed more than 7% lower on Tuesday following the company’s disappointing outlook, while Q4/21 results were better than analysts’ expectations. Quarterly adjusted EPS came in at $1.29, well above the Street estimate of $1.07. Revenue grew 21% year-over-year to $1.07 billion, slightly higher than the Street estimate of $1.05 billion.

The company’s 2023 guidance calls for material revenue deceleration, customers with >10 employees actually declined quarter-over-quarter, and implied NRR of 103% suggests there is more churn to come. For Q1/23 the company expects EPS to range from $0.86 to $0.88, significantly lower than the Street estimate of $1.03. Revenue is expected to range from $1.07 billion to $1.075 billion, compared to the Street estimate of $1.1 billion.

For the full 2023-year, the company sees EPS in the range of $3.45-$3.51, below the Street estimate of $4.40, and revenue in the range of $4.53-$4.55 billion, compared to the Street consensus of $4.75 billion.

On the positive side, the guide calls for revenue acceleration in Q4/23, Phones momentum is impressive, and the board of directors announced a $1 billion share buyback.