Zoom Video Communications, Inc. (NASDAQ:ZM) shares dropped more than 16% on Tuesday following the company’s Q2 earnings and reduced guidance announcement.

Quarterly EPS came in at $1.05, compared to the Street estimate of $0.94. Revenue increased 8% year-over-year to $1.1 billion, slightly missing the Street estimate of $1.12 billion.

The company provided disappointing Q3 and 2023 revenue guidance due to macro pressure on its Online business. For Q3, the company expects total revenue to be in the range of $1.095-$1.100 billion and non-GAAP diluted EPS in the range of $0.82-$0.83.

Full 2023-year revenue is expected to be in the range of $4.385-$4.395 billion, compared to the Street estimate of $4.54 billion. The company expects non-GAAP diluted EPS to be in the range of $3.66-$3.69.