ZOOM Video Communications raised its annual revenue and profit forecasts on Monday, as hybrid work trends and the integration of artificial intelligence technology into its products boosted demand.
During the Covid lockdowns, platforms like Zoom, Microsoft Teams, and Cisco Webex became well-known, and their demand has been steady as more companies have embraced the hybrid work models.
Zoom expects annual adjusted profit per share between US$4.93 and US$4.95, higher than its prior forecast of US$4.63 and US$4.67.
The full-year revenue estimate was raised from US$4.485 billion to US$4.495 billion, with an increase to between US$4.506 billion and US$4.511 billion.
“We bolstered Zoom‘s all-in-one intelligent collaboration platform with advanced new capabilities like Zoom AI Companion and continued to evolve our customer and employee engagement solutions,” CEO Eric Yuan said.
Zoom‘s AI Companion, introduced during the third quarter, allows paid users to access features including meeting summaries and catch-ups, as well as email and chat composed prompts.
In extended trading, the San Jose, California-based company’s shares increased by about 2% to US$67.08. Based on LSEG statistics, revenue for the current quarter is anticipated to be in the range of US$1.125 billion to US$1.130 billion, which is in line with estimates.
For the third quarter, Zoom‘s revenue grew 3.2 per cent to US$1.14 billion, slightly above estimates of US$1.12 billion.
On an adjusted basis, the company made US$1.29 per share, above analysts forecast of US$1.109.