Zoom Video Communications saw its stock jump on Monday after reporting better-than-expected earnings for its third quarter that beat analysts’ estimates. The company also raised its full-year guidance on increased demand for its video-conferencing software.
Zoom had $1.38 in adjusted earnings per share for Q3, while analysts expected $1.31 per share. The company’s revenue saw a 4% year-over-year increase, coming at $1.18 billion. The Wall Street analysts estimated $1.16 billion in revenue.
The company expects its business to see further growth by the end of the year on the back of the continued popularity of its flagship software as well as the introduction of new features and products. This includes several artificial intelligence-powered tools like Custom AI Companion.
Zoom is now forecasting $5.41 to $5.43 in adjusted earnings per share and $4.656 billion to $4.661 billion in revenue for the full fiscal year. At the end of Q2, it projected $5.29 to $5.32 in adjusted earnings per share and revenue between $4.630 billion and $4.640 billion. On the other hand, the analysts estimated $5.35 per share and $4.64 billion in revenue.
Zoom stock initially jumped by almost 7% on Monday before coming down later in the day and closing with a 3.67% gain. At Monday’s close price of $89.03, the stock is 28.75% up year-to-date.