Zoom raises annual revenue forecast on strong demand for its AI-powered products
4:47 pm Wednesday, August 21st, 2024
(Reuters) -Zoom Video Communications raised its annual revenue forecast on Wednesday, driven by strong demand for its AI-powered collaboration tools deployed in hybrid work models, sending its shares up 4% in extended trading.
The video-conferencing provider has been doubling down on efforts to integrate artificial intelligence into its products and expand its range of services and leverage the growing trend of hybrid work.
The company has launched Zoom Workplace as a collaboration platform, which contains other products like “Zoom Docs” and allows employees or teams to chat, call and manage files in one place with the help of its AI companion.
Zoom said large accounts, with customers contributing more than $100,000 in trailing 12-month revenue, increased 7.1% over the year earlier in the second quarter. Online average monthly churn also reached its lowest ever rate during the period, it said.
Zoom expects fiscal 2025 revenue to be between $4.63 billion and $4.64 billion, compared with the $4.61 billion and $4.62 billion forecast earlier. Analysts on average estimate $4.62 billion, according to LSEG data.
Revenue for the quarter ended July 31 stood at $1.16 billion, beating analysts’ estimate of $1.15 billion.
The company earned $1.39 per share on an adjusted basis, compared with $1.34 a year earlier.
(Reporting by Juby Babu in Mexico City; Editing by Shilpi Majumdar)
