Zoom Video Communications Inc. raised its full-year consistent profit forecast on Monday, betting on strong business demand in a hybrid work environment, with the company’s shares rising 15% in extended trading.
Revenue from Zoom’s high-paying enterprise customers jumped 31% in the first quarter, representing 52% of its total revenue, the company said.
“We expect that revenue from enterprise customers will turn into an increasingly high percentage of total revenue over time,” Chief Financial Officer Kelly Stekelberg said in a post-earnings call with analysts.
The company said its adjusted operating margin increased 37.2% for the quarter ended April 30, as efforts to expand its enterprise offerings to customer service communications hubs, cloud calling and analytics companies paid off.
Zoom recently announced the acquisition of an AI startup Solvvy and launched a call analytics tool Zoom IQ for the sales department.
For the full year, Zoom predicts that earnings per share will be between $ 3.70 and $ 3.77, up from earlier expectations of $ 3.45 and $ 3.51.
However, the company’s first-quarter revenue rose 12% to $ 1.07 billion, the slowest growth on record.
Over the past few quarters, demand for the company’s platform has declined as competition from the Covid-19 lockdown has eased and competition from Microsoft’s Team and Cisco’s WebX and Google’s Meet has intensified.
Nevertheless, the San Francisco-based firm reported first-quarter profits that exceeded expectations and forecast earnings for the current quarter.
Shares of Zoom, an epidemic favorite, have fallen 85% since touching a record high in 2020.
(This story was not edited by NDTV staff and was automatically generated from a syndicated feed.)