Zoom Communications' (ZM) Q2 results showed Enterprise segment revenue growth accelerating to 8% year on year, but the upside was offset by weaker-than-expected performance from the company's Online segment, UBS said in a note Wednesday.

Growth in the company's Online business decelerated from 3% year on year in Q1 to about 1% year on year in Q2, UBS said, adding that Zoom attributed the "slowdown to softer top-of-funnel activity."

The investment firm said that as a result, Zoom "effectively reiterated" its about 4% revenue growth guidance for H2 in constant-currency terms, as stronger trends in its Enterprise segment and the contribution from its acquisition of Common Room are now expected to be offset by the weaker Online business.

UBS noted Zoom is now guiding for "flattish" growth for the Online segment in H2 compared with previous expectations for a slight increase in growth.

The investment firm said the decreased guidance for the Online segment implies H2 revenue guidance would otherwise have increased by about $10 million to $20 million supported by strength from the Enterprise division as well the Common Room deal.

UBS has a neutral rating on Zoom and a $115 price target.

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