Zoom Video Communications increased demand on Monday by raising its yearly revenue and profit projections due to trends toward hybrid work and the incorporation of artificial intelligence technologies into its products.
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During the COVID lockdowns, platforms like Zoom, Microsoft Teams, and Cisco Webex became well-known, and their demand has been steady as more companies have embraced hybrid work arrangements.
Zoom has raised its previous estimate of $4.63 to $4.67 for yearly adjusted profit per share to between $4.93 and $4.95.
The company increased its revenue projection for the entire year from $4.485 billion to $4.495 billion, to a range of $4.506 billion to $4.511 billion.
“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,” Eric Yuan, Zoom’s CEO, stated.
Introduced in the third quarter, Zoom’s AI Companion gives paying users access to tools like email and chat written prompts, meeting recaps, and catch-ups. As of Monday, more than 220,000 accounts have activated it.
Zoom’s free cash flow for the quarter increased by 66.2% to $453.2 million, and the business anticipates $1.34 billion to $1.35 billion for the entire 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,” Rishi Jaluria, an analyst at RBC, said.
As of the end of the quarter, the Phone sector had grown to over 7 million paid seats, and the Contact Center had about 700 customers.
LSEG data indicates that Zoom’s revenue for the current quarter is anticipated to be in the range of $1.125 billion to $1.130 billion, which is consistent with predictions.
Revenue for the third quarter was 3.2% more than expected at $1.14 billion.
On an adjusted basis, it made $1.29 per share, exceeding analysts’ projected $1.09
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