As a result of the integration of artificial intelligence technology into its operations and the adoption of hybrid work styles, O ) revised its quarterly revenue and profit forecasts on Monday.
Platforms such as Zoom and Microsoft’s ( MSFT) Teams, along with offerings from O and Cisco ( CSCO) Webex, gained significant popularity during the COVID lockdowns and have continued to attract interest as more companies transitioned to hybrid work models.
Zoom now expects an annual adjusted profit per share in the range of \(4.93–\)4.95, surpassing its previous projection of \(4.63–\)4.67.
The full-year revenue outlook has been adjusted from \(4.85 billion to a range of \)5.06 billion to $4.511 billion.
CEO Eric Yuan highlighted, “We have enhanced Zoom’s comprehensive collaboration software with innovative features like Zoom AI Companion and further developed our business and personal engagement solutions.”
The latest iteration of Zoom’s AI Companion, released in the third quarter, offers premium users access to features such as meeting summaries, follow-ups, as well as prompts generated through email and chat interactions.
Following the announcement, shares of the San Jose, California-based company rose by nearly 2% to $67.08 during after-hours trading.
As per LSEG data, the projected profit for the current quarter is expected to fall within the range of \(1.125 billion to \)1.130 billion, aligning with market expectations.
Zoom’s third-quarter profits climbed by 3.2% to \(1.14 billion, slightly exceeding estimates. On an adjusted basis, the company reported earnings of \)1.29 per share, surpassing the anticipated $1.09.
The reporting was provided by Samrhitha Arunasalam based in Bengaluru, with processing handled by Devika Syamnath.
