Zoom Video Communications has revised its annual revenue and profit forecasts, attributing the positive outlook to the integration of artificial intelligence (AI) technology into its products and the ongoing shift towards hybrid work models. The widespread adoption of communication platforms during the COVID-19 pandemic has sustained robust demand for services like Zoom, Microsoft Teams, and Cisco Webex.
CEO Eric Yuan emphasized the company’s commitment to enhancing its collaboration platform, citing innovations such as the Zoom AI Companion. Launched in the third quarter, this feature provides paid users with valuable tools like meeting summaries, catch-ups, and email and chat prompts. Already, more than 220,000 accounts have embraced this advanced capability.
Zoom now anticipates its annual adjusted profit per share to range between $4.93 and $4.95, surpassing the previous forecast of $4.63 to $4.67. Similarly, the full-year revenue forecast has been revised to a range of $4.506 billion to $4.511 billion, up from $4.485 billion to $4.495 billion.
In addition to strong financial performance, Zoom’s quarterly free cash flow experienced a notable increase, growing by 66.2% to $453.2 million. The company projects its full-year free cash flow to be between $1.34 billion and $1.35 billion.
As Zoom looks ahead, the current-quarter revenue is expected to align with projections, ranging between $1.125 billion and $1.130 billion. The company’s strategic focus on AI integration and responsiveness to the evolving hybrid work landscape positions it for sustained success in the dynamic digital communication sector.
