Zoom forecasts annual profit above estimates

Zoom forecasts annual profit above estimates

Videoconferencing demand remains steady.

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Zoom Video Communications has forecast annual profit above Wall Street estimates, saying it benefitted from cost-cutting measures and steady demand for its videoconferencing service from the ongoing shift to hybrid work models.

Shares of the company rose six percent in trading after the bell.

Zoom became a household name during the pandemic when many organisations stuck with lockdowns flocked to its platform to maintain easy communication with its employees.

The company has expanded its offerings to include connected conference rooms, cloud-calling products, workspaces and online webinars to attract both small and large businesses amid high competition and slow economic growth.

Zoom forecast annual profit between US$4.11 per share and US$4.18 (S$5.55 to S$5.64) per share, compared with estimates of US$3.66 per share, according to Refinitiv data.

Revenue for the quarter that ended January 31 was US$1.12 billion, compared with analysts average expectation of US$1.10 billion.

However, the company expects fiscal 2024 revenue to be between US$4.44 billion and US$4.46 billion, compared with analysts average estimate of US$4.60 billion.

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