Zoom lifts annual results forecasts on hybrid work boost

(Reuters) -Zoom Video Communications Inc on Monday raised its full-year forecasts for revenue and profit as hybrid work trends sustain demand for the firm’s video-conferencing services, sending its shares up nearly 5% in extended trading.

Zoom became a household name during lockdowns as companies and people turned to the platform to stay connected. Now, it is seeking to retain customers and outpace competition with expanded offerings such as online webinars, workspaces and other cloud-calling products.

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Sales in its enterprise business rose 13% to $632 million.

“The solid start to the year has enabled us to raise our outlook for fiscal year 2024 while continuing to invest in innovations such as AI,” said CEO Eric Yuan.

Zoom raised its annual revenue forecast to between $4.47 billion and $4.49 billion, from $4.44 billion to $4.46 billion earlier.

It now expects annual adjusted profit per share between $4.25 and $4.31, compared with an earlier estimate of $4.11 to $4.18.  

Revenue for the quarter ended April 30 was $1.11 billion. Analysts were expecting $1.08 billion, according to Refinitiv data.

On an adjusted basis, the company earned $1.16 per share, above estimates of 99 cents.

(Reporting by Tiyashi Datta in Bengaluru; Editing by Devika Syamnath)

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