Zoom forecasts strong current quarter, gets share boost
Pandemic continues to play into hands of video conferencing services
Zoom Video Communications forecast current-quarter revenue above expectations, as the video-conferencing platform benefits from increased users due to remote work and online learning against the backdrop of broader stay-at-home orders.
The company’s shares, which more than quadrupled in 2020, rose 9 per cent to $448 in after-market trading on Monday.
Video conferencing services such as Zoom stand to benefit from the adoption of hybrid work models by many businesses, part work-from-office and part work-from home, that demand the usage of its platform to stay connected.
The company forecast current-quarter revenue between $900 million and $905 million (Dh3.31 billion and 3.32 billion), compared with estimates of $829.2 million, according to IBES Refinitiv data.
Zoom users have surged in the past year, as more people used it for socializing, virtual meetings and e-classes. The platform said it has 1,644 customers contributing more than $100,000 in trailing 12 months revenue, more than double from a year earlier.
The company reported quarterly revenue of $882.5 million, compared with estimates of $811.8 million.
On an adjusted basis, the Zoom earned $1.22 per share, beating estimates of 79 cents per share.