Technology
Zoom tops estimates for third-quarter results as hybrid work jacks up demand
Zoom Video Communications (ZM.O) topped estimates for third-quarter results on Monday, as the video-conferencing platform benefited from the launch of its new offerings that helped boost demand as businesses adopt hybrid models of work.
The company also forecast current-quarter revenue and earnings above expectations, and raised its full-year revenue estimate to around $4.08 billion from about $4.01 billion earlier.
Its recently launched Events platform, where businesses can host large-scale conferences, coupled with Zoom Phone and Zoom Rooms has helped the company compete better with rival platforms such as Microsoft (MSFT.O) Teams, Cisco (CSCO.O) Webex as well as Slack.
The pandemic-winning stock rose about 1% in extended trading, after having lost about 28% this year as investor enthusiasm in the stock waned after the coronavirus-led boom cooled and people started venturing outdoors.
The company has been attempting to convert its short-term pandemic gains into longer-term financial returns by attracting enterprise customers against the backdrop of a failed deal to acquire cloud-based customer contact software firm Five9 (FIVN.O). read more
Zoom said it had about 512,100 customers with more than 10 employees at the end of the quarter, which is an 18% jump from a year earlier.
The company reported a profit of $1.11 per share and revenue of $1.05 billion in the third quarter ended Oct. 31, beating Wall Street's estimates for a profit of $1.09 per share and revenue of $1.02 billion.
SOURCE: REUTERS