Shares of Zoom Video Communications Inc. fell over 5% in premarket trading Tuesday after the company provided quarterly sales guidance on Monday that aligned with analysts' expectations but failed to exceed them, leaving investors hoping for stronger momentum from its diversified product offerings.

For the quarter ending January, Zoom projected revenue of $1.18 billion, with adjusted earnings between $1.29 and $1.30 per share. Analysts, on average, had forecast $1.17 billion in revenue and adjusted earnings of $1.28 per share. While these figures met expectations, the market had anticipated better earnings per share given the company's efforts to diversify its product range with AI products that reportedly yielded good consumer response.

The disappointing market reaction comes despite Zoom's attempts to broaden its portfolio with products like AI-driven virtual assistants, an enterprise contact center solution, and phone systems, signaling a strategy to position itself as a comprehensive communications platform.

Zoom's product expansions did attract new customers and revenue according to the company's earnings report. Monthly active users of its AI assistant increased by 59% over the last quarter, and its contact center application garnered 1,250 customers. Zoom shares had been gaining momentum since the second quarter and continued to rise ahead of the earnings call this month.

According to Zoom, its enterprise revenue rose by 5.8% in the past quarter, and its 3,995 enterprise customers contributed more than $100,000 over the past year. However, analysts and investors are concerned about churn in individual customers in the post-pandemic period.

The challenges persist with its consumer and small business segments, which typically deliver higher margins. The company reported a monthly churn rate of 2.7%, better than analysts' estimates, yet the rate remains a concern considering post-pandemic corrections.

 "While the results were solid, the steep pre-earnings gain in Zoom's stock left little room for upside, potentially dampening interest from new investors," said Citigroup analyst Tyler Radke, according to a Bloomberg report.

Zoom also announced rebranding, dropping "Video" from its name to become Zoom Communications Inc. to better reflect its expanded portfolio. "The new name better represents our evolving vision and long-term growth strategy," CEO Eric Yuan explained in a post after the call.

The company also welcomed Michelle Chang, a former Microsoft executive, as its new Chief Financial Officer in October, following Kelly Steckelberg's departure to design platform Canva Inc.

To bolster shareholder confidence, Zoom announced an additional $1.2 billion allocation to its share buyback program, raising its total authorization to $2 billion. However, this move did little to counteract the stock's decline, especially after its recent strong rally ahead of the earnings report.

Zoom faces a mixed outlook. While its enterprise-focused strategy shows promise, the loss of high-margin consumer and small business clients continues to weigh on profitability. With intensifying competition from platforms like Microsoft Teams and Google Meet, Zoom's ability to drive significant growth from its expanded product ecosystem remains a key question for investors.

As the company shifts gears from pandemic-era dominance to broader enterprise communications, its performance in the coming quarters will be crucial to regaining investor confidence.