HomeTechnologyZoom Stock Jumps Amid Earnings Beat, Raised Full-Year Revenue Guidance

Zoom Stock Jumps Amid Earnings Beat, Raised Full-Year Revenue Guidance

Zoom Video Communications, makers of video-call software Zoom, shared its fiscal second-quarter earnings report that beat the analysts’ expectations and raised its full-year revenue guidance. This caused the company’s stock to surge by 3% in after-hours trading.

Zoom reported $1.16 billion in revenue, compared to an estimated $1.15 billion by analysts, while its $1.39 in earnings per share comfortably cleared the $1.22 per share mark expected by Wall Street analysts. Its revenue was 2.1% up year-over-year, while earnings per share increased from $1.34 in the same period last year.

The company particularly benefited from the introduction of artificial intelligence to its platform. Its AI Companion offering, which provides users with summaries of their meetings with a single mouse click, was adopted by 1.2 million users.

“We had a strong quarter marked by broadening our Zoom Workplace offering, marching up the market with contact center, and deepening the AI capabilities that underpin our entire platform,” said Zoom founder and CEO Eric Yuan in a press release.

On the back of a strong quarter, Zoom raised its full-year revenue guidance from 4.61 billion and $4.62 billion to $4.63 billion and $4.64 billion.

Additionally, the company also announced that its longtime Chief Financial Officer (CFO) Kelly Steckelberg will be stepping down from the position at the end of the third fiscal quarter. The search for Steckelberg’s successor is currently underway.

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