Zoom lifts annual revenue forecast as AI features boost demand

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.

Platforms including Zoom, Microsoft’s Teams and Cisco’s Webex became household names during the Covid lockdowns and have enjoyed resilient demand as many businesses shifted to 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.

It lifted the full-year revenue forecast to between US$4.506 billion and US$4.511 billion, from US$4.485 billion to US$4.495 billion earlier.

“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.

Shares of the San Jose, California-based firm were nearly 2 per cent higher at US$67.08 in extended trading.

Current-quarter revenue is expected to be between US$1.125 billion and US$1.130 billion, in line with expectations, according to LSEG data.

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.

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The company earned US$1.29 per share on an adjusted basis, surpassing expectations of US$1.09. REUTERS