At the time COVID-19 pandemic hit, Zoom was a relative upstart that had gone public on a promise to make video conferencing software easier to use
Shares in Zoom Video Communications Inc rose 10% as the company forecast revenue for the current quarter above expectations, as the company expects millions of people to continue using its video-conferencing platform to work remotely and attend online classes.
The popularity of Zoom surged during the ongoing Covid pandemic as people across the world were forced to stay indoors due to the lockdown restrictions.
At the time COVID-19 pandemic hit, Zoom was a relative upstart founded by a former Cisco executive that had gone public on a promise to make video conferencing software easier to use.
However, businesses around the world took to the company’s video conferencing services during the Covid crisis. Zoom has since seen a meteoric rise over the last year, with investors keen on knowing if the firm can maintain this level of growth.
Eric Yuan, founder and chief executive officer of Zoom, said the firm was “well positioned for strong growth” in the coming year.
According to IBES Refinitiv data, the company forecast current-quarter revenue between $900 million and $905 million, compared with estimates of $829.2 million.
Zoom has seen the number of its users surge in the past year, while its shares rose more than four times during the same period. The company said it has 1,644 customers contributing more than $100,000 in trailing 12 months revenue, which is 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, Zoom earned $1.22 per share, beating estimates of 79 cents per share.
The company’s shares, which closed up 9.6% on Monday, were trading at $452 after the bell.
This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.