Zoom Video Communications shares soared after the company boosted its earnings forecast for the current fiscal year and said it was still enjoying the hybrid work trend.
The video conferencing company raised its full-year adjusted net income to $ 1.48 billion to $ 1.5 billion, compared to a previous forecast of between $ 1.4 and $ 1.45 billion. However, Zoom has left its revenue forecast unchanged between $ 4.53 billion and $ 4.55 billion.
Zoom’s forecast was welcomed by investors amid disappointing results mainly from technology companies that became stock market darlings during the epidemic, and warnings from blues that profits are being eroded by higher costs. Shares rose Monday by nearly 15% in after-hours trading, after rising more than 18%.
Although cases of Covid-19 have fallen in many countries, hybrid labor has become a new norm for many workers. This change continued the demand for video conferencing, which rose in popularity during the plague. Zoom said it had increased the number of enterprise customers – its paid service – by 24% in its first quarter, compared to the same period last year.
Zoom said it expects revenue for the current quarter to be in the range of $ 1.11-1.12 billion, while adjusted earnings should reach between 90 and 92 cents per share. These data are slightly ahead of analysts’ forecasts.
Zoom reported a 12% increase in revenue to $ 1.07 billion in the first quarter, led by new user growth, which met analysts’ expectations. Adjusted earnings of $ 1.03 per share exceeded the Wall Street forecast of 87 cents.
“We provided revenue of over $ 1 billion resulting from continued success in Enterprise, Zoom Rooms and Zoom Phone, which reached 3 million seats during the quarter,” said CEO Eric Yuan.
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