(Reuters) – Zoom Video Communications on Monday raised its annual profit and revenue forecasts, buoyed by strong demand for its product suite as companies continue to embrace hybrid working.
Optimistic forecasts indicate that Zoom’s efforts to integrate artificial intelligence (AI) and expand the scope of its services have been successful.
Zoom introduced Workplace, an open, AI-powered collaboration platform in March, along with new accompanying AI expansions, first unveiled in September last year, to paid users.
Zoom, along with platforms like Microsoft Teams and Cisco’s Webex, has been a favorite of the pandemic, which most companies and individuals are turning to to communicate with employees and friends.
“In the first quarter, we continued to integrate AI across our platform including Zoom Contact Center and Zoom Workplace, our AI-powered collaboration platform,” said CEO Eric Yuan.
The company now expects 2025 revenue to be about $4.61 billion to $4.62 billion, up from its previous forecast of about $4.6 billion. Analysts expect revenue of $4.61 billion, according to LSEG data.
On an adjusted basis, the company expects full-year earnings to be between $4.99 and $5.02 per share, compared to its previous forecast of $4.85 to $4.88.
For the second quarter, Zoom expects revenue between $1.145 billion and $1.150 billion, slightly below analysts’ average estimate of $1.15 billion.
The company reported revenue of $1.14 billion, up 3.2%, for the first quarter ended April 30 and above analysts’ expectations of $1.13 billion.
Zoom reported adjusted quarterly earnings of $1.35 per share, also above estimates of $1.20.
(Reporting by Gopi Babu in Mexico City; Editing by Shailesh Kuber)
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