(Reuters) -Zoom Video Communications on Monday raised its forecast for full-year profit and revenue, helped by robust demand for its product portfolio as companies continue to adopt hybrid work models.
The upbeat outlook suggests that Zoom’s efforts to incorporate artificial intelligence (AI) into its offerings and broaden its range of services have been successful, capitalizing on the rise of hybrid work.
The company introduced Zoom Workplace, an AI powered, open collaboration platform in March, along with new AI companion expansions, first unveiled in September last year, for paid users.
Zoom, along with platforms like Microsoft’s Teams and Cisco’s Webex are pandemic darlings, which most businesses and individuals turned to, for connecting with employees and friends.
The company now expects 2025 revenue of about $4.61 billion to $4.62 billion, up from its earlier forecast of about $4.6 billion. Analysts expect revenue of $4.61 billion, per LSEG data.
On an adjusted basis, it expects full-year earnings between $4.99 and $5.02 per share, compared with its previous forecast of between $4.85 and $4.88 per share.
For the second quarter, Zoom sees revenue between $1.145 billion and $1.150 billion, slightly below analysts’ average estimate of $1.15 billion.
The company posted revenue of $1.14 billion, up 3.2%, for the first quarter ended April 30, above analysts’ expectations of $1.13 billion.
Zoom reported quarterly adjusted earnings of $1.35 per share, also above estimates of $1.20.
(Reporting by Juby Babu in Mexico City; Editing by Shailesh Kuber)
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