Zoom Video Communications (NASDAQ:ZM) Inc.’s third-quarter revenue growth slowed as the extra demand for remote work and the company’s videoconferencing application eased along with Covid-19 pandemic pullback.

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The stock fell to $227.50 in extending trading, sending its shares down about 6% on Monday.

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The company has been unable to maintain the heady growth it experienced when organizations leaned heavily into remote work during the onset of COVID-19.

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Zoom’s sales shot up fourfold to more than 360% amid the pandemic compared to the previous year. Net income for Zoom’s fiscal third quarter rose to $340 million, more than 70% from the year earlier.  

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Wall Street analysts projected a net income of $337 million for the quarter, and total sales of $1.018 billion, are expected for the current quarter ending in January. Zoom anticipates better-than-expected total sales of between $1.051 billion and $1.053 billion.

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Moreover, Zoom faces stiff competition from the likes of Microsoft Corp.’s Team application, which combines videoconferencing and other collaboration features.

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Microsoft (NASDAQ:MSFT) also intends to bring Teams to every Windows user as part of its next-generation operating system, posing one of the biggest challenges to Zoom’s market share.

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To retain users, Zoom launched the Events platform that allows businesses to host large-scale conferences. Other new offerings include cloud-calling service Zoom Phone, and in-office meetings feature Zoom Rooms.

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“We are working hard to develop and deploy the technologies of the future to address current business needs and reimagine how we communicate and work in a flexible hybrid world.” – Chief Executive Eric Yuan, Zoom.

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Some investors and Investment bankers are concerned that Zoom’s best days are behind it unless it finds new business.  

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Plans for Zoom’s diversification seem impeded after the $14.7 billion offer to buy the cloud call-center business Five9 Inc. was abandoned over price differences.

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The value of Zoom’s shares is down more than 40% compared to a year ago.

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