Technology
Zoom lifts annual results forecast as AI features boost demand
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.
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 now expects annual adjusted profit per share between $4.93 and $4.95, higher than its prior forecast of $4.63 and $4.67.
The company lifted its 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. More than 220,000 accounts had enabled it as of Monday.
The company's quarterly free cash flow grew 66.2% to $453.2 million, and Zoom expects $1.34 billion to $1.35 billion for the full year.
"Cash flow was the highlight, but also encouraged by traction with Phone and Contact Center... gives us greater confidence that we can see growth re-accelerate in the near term," RBC analyst Rishi Jaluria said.
The Phone segment grew to roughly 7 million paid seats while Contact Center reached about 700 customers as of quarter-end.
Zoom's 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, revenue grew 3.2% to $1.14 billion, slightly above estimates.
It earned $1.29 per share on an adjusted basis, surpassing expectations of $1.09.
-
Technology16h ago
How To Use The Meta AI Chatbot In Instagram, WhatsApp Along With Its Hidden Features
-
Technology1d ago
Chipmaker Intel falls as AI competition hurts forecast
-
Technology1d ago
Eric Schmidt and Yoshua Bengio Debate How Much A.I. Should Scare Us
-
Technology1d ago
Alphabet, Microsoft earnings show hefty AI bets are driving growth
-
Technology1d ago
Argentine scientists find speedy 90-million-year-old herbivore dinosaur
-
Technology1d ago
Under the influence and under arrest − what happens if you’re drunk in the interrogation room?
-
Technology1d ago
Cybersecurity researchers spotlight a new ransomware threat – be careful where you upload files
-
Technology2d ago
What a TikTok Ban in the U.S. Could Mean for You