NEW YORK: Zoom Video Communications raised its annual forecast for profit and revenue, helped by robust demand for its product portfolio as companies continue to adopt hybrid work.
The upbeat outlook indicated that Zoom’s efforts to incorporate artificial intelligence (AI) and broaden its range of services have been successful.
It introduced Zoom Workplace, an AI powered, open collaboration platform in March, along with new AI companion expansions, first unveiled in September last year, for paid users.
Zoom, along with platforms like Microsoft’s Teams and Cisco’s Webex are pandemic darlings, which most businesses and individuals turned to, for connecting with employees and friends.
“In the first quarter, we continued to integrate AI across our platform, including Zoom Contact Centre and Zoom Workplace, our AI-powered collaboration platform,” chief executive officer Eric Yuan said.
The company now expects 2025 revenue of about US$4.61bil to US$4.62bil, up from its earlier forecast of about US$4.6bil. Analysts expect revenue of $4.61bil, according to LSEG data.
On an adjusted basis, it expects full-year earnings between US$4.99 and US$5.02 per share, compared with its previous forecast of between US$4.85 and US$4.88.
For the second quarter, Zoom sees revenue between US$1.145bil and US$1.150bil, slightly below analysts’ average estimate of US$1.15bil.
The company posted revenue of US$1.14bil, up 3.2%, for the first quarter ended April 30 and above analysts’ expectations of US$1.13bil.
Zoom reported quarterly adjusted earnings of US$1.35 per share, also above estimates of US$1.20. — Reuters