(Reuters) -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.
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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 $4.93 and $4.95, higher than its prior forecast of $4.63 and $4.67.
It lifted the full-year revenue forecast to between $4.506 billion and $4.511 billion, from $4.485 billion to $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.
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Shares of the San Jose, California-based firm were nearly 2% higher at $67.08 in extended trading.
Current-quarter revenue is expected to be between $1.125 billion and $1.130 billion, in line with expectations, according to LSEG data.
For the third quarter, Zoom’s revenue grew 3.2% to $1.14 billion, slightly above estimates of $1.12 billion.
The company earned $1.29 per share on an adjusted basis, surpassing expectations of $1.09.
(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Devika Syamnath)
-TheStar