HomeTechnologyZoom Tops Estimates, Raises Full-Year Forecast

Zoom Tops Estimates, Raises Full-Year Forecast

Zoom Video Communications reported its earnings for the first quarter of 2024 on Monday and topped the estimates of Wall Street analysts. The communications company has also raised its full-year forecast based on increased demand for its products.

Zoom reported revenue of $1.14 billion, marking a 3.2% increase compared to the same period in 2023, while the analysts estimated revenue of $1.13 billion. The adjusted earnings per share came at $1.35 versus $1.20 per share expected by analysts.

The company previously forecasted revenue of $4.6 billion for the full year but now expects $4.61 billion to $4.62 billion. Meanwhile, analysts are expecting revenue of $4.61 billion.

Zoom is contributing its good results to new artificial intelligence-powered offerings, including Zoom Workplace and other AI improvements.

“In Q1, we continued to integrate AI across our platform, including Zoom Contact Center and Zoom Workplace, our AI-powered collaboration platform that provides customers the ability to reimagine teamwork by streamlining communications, increasing employee engagement, and improving productivity within their organizations,” Zoom founder and CEO Eric S. Yuan said in a press release. “These innovations combined with our execution and focused investment enabled us to outperform our guidance and drive operating cash flow growth of 40.6% and free cash flow growth of 43.6% year over year.”

Zoom stock closed at $64.09 on Monday before experiencing brief periods of jumps and slides in after-hours trading. The company’s shares are currently 7.32% down year-to-date.

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