May 21 (Reuters) – Zoom Communications raised its annual revenue and profit forecasts on Thursday, betting on strong demand for its AI features as the video conferencing platform looks to shore up enterprise and consumer spending.
Shares of the company were up more than 7% in extended trading.
Zoom has been extensively integrating AI tools, including agents and companions, into its video meeting and communication services, to boost its appeal and attract more enterprise customers.
Here are more details:
• The company now expects fiscal 2027 revenue of between $5.08 billion and $5.09 billion, compared with its earlier forecast of $5.07 billion to $5.08 billion.
• It raised its annual adjusted earnings per share (EPS) outlook to between $5.96 and $6, compared with its prior forecast of $5.77 to $5.81.
• The platform also authorized an additional $1 billion share buyback.
• Zoom forecast second-quarter revenue between $1.26 billion and $1.27 billion, compared with estimates of $1.27 billion, according to data compiled by LSEG.
• It expects quarterly adjusted EPS between $1.45 and $1.47, compared with analysts’ average estimate of $1.48.
• Revenue for the first quarter ended April 30 came in at $1.24 billion, beating estimates of $1.22 billion.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Diti Pujara)