By Akash Sriram

(Reuters) – Shares of Zoom Video Communications (NASDAQ) Inc fell to 17-months lows Tuesday, after it posted its slowest quarter-end revenue growth in the face of stiff competition from Microsoft (NASDAQ) and Cisco (NASDAQ)

On Tuesday, the company posted $1.05 billion in revenue for its third quarter. This was a much better result than anticipated considering that it saw a 35% increase compared to an incredible 360% during the year of pandemics.

Needham brokerage stated that “topline growth remains weighed down” by the weakness of the micro-segment from pull forward and temporary pandemic businesses.

Zoom also added new customers, with more than 10 employees, at 18%. This is below its pre-pandemic peak when Zoom was still a relatively unknown company.

Joe McCormack from Third Bridge said the company is experiencing a slowdown in growth among small and medium-sized businesses, even though it may have reached saturation within large enterprises.

It will be difficult to make it a contact centre product after the $14.7 million deal to purchase call-center software provider Five9, NASDAQ:, fell through.

Zoom stock fell by 14%, to $208.15 early in trading. Since the peak value of $114 billion in 2013, Zoom shares have nearly fallen by half.

Evercore analysts said in a note, “For the moment investors will need to be patient because we don’t see any upcoming catalysts which would change the sentiment of the stock.”