(Reuters) -Zoom Video Communications Inc on Monday raised its full-year adjusted profit forecast, signaling renewed demand for its video-conferencing tools in a hybrid work environment, sending the company‘s shares up 17% in extended trading.
The forecast raise comes at a time when demand for the company‘s platform was seen easing over the past quarters from the pandemic-led heights in 2020 and competition intensifies from Microsoft’s Teams and Cisco’s WebEx and Google’s Meet.
However, in a tight labor market, companies are offering hybrid work options, which calls for investment in platforms like Zoom to stay connected.
For the full year, Zoom forecast adjusted profit per share to be between $3.70 and $3.77, compared with earlier expectations of between $3.45 and $3.51.
The company also forecast second-quarter adjusted earnings in the range of 90 cents to 92 cents per share, above estimates of 87 cents.
Zoom said revenue rose 12% to $1.07 billion in the quarter ended April 30, its slowest growth since going public in 2019. That was in line with Wall Street estimates, according to Refinitiv IBES data.
Net income attributable to common stockholders fell to $113.6 million, or 37 cents per share, in the first quarter, from $227.4 million, or 74 cents per share, a year earlier.
(Reporting by Eva Mathews in Bengaluru; Editing by Amy Caren Daniel)
