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Shares of Zoom Video Communications jumped after the company raised its earnings outlook for the current fiscal year and said it was still benefiting from the hybrid work trend.
The video conferencing company raised its full-year adjusted net profit to between $1.48 billion and $1.5 billion, compared to previous guidance of between $1.4 billion and $1.45 billion. . However, Zoom left its revenue outlook unchanged between $4.53 billion and $4.55 billion.
Zoom’s outlook was welcomed by investors amid disappointing results for most tech companies that have become stock market darlings during the pandemic, and warnings from blue chips that profits were being eroded by higher costs. students. The shares rose nearly 15% in after-hours trading on Monday, after rising more than 18%.
Although Covid-19 cases have declined in many countries, hybrid working has become a new normal for many workers. This change has supported the demand for video conferencing, which has grown in popularity during the pandemic. Zoom said it 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 current quarter revenue to be between $1.11 billion and $1.12 billion, while adjusted earnings are expected to be between 90 and 92 cents per share. . Both figures were slightly ahead of analysts’ forecasts.
The company reported a 12% increase in revenue to $1.07 billion for the first quarter, driven by new user growth, which met analysts’ expectations. Adjusted earnings of $1.03 per share beat Wall Street forecasts by 87 cents.
“We achieved over $1 billion in revenue from the continued success of Enterprise, Zoom Rooms and Zoom Phone, which reached 3 million seats in the quarter,” said CEO Eric Yuan.