Zoom Video Communications (ZM.O) has outshone Wall Street’s predictions by projecting a higher-than-anticipated third-quarter profit, showcasing its resilience in the wake of a post-pandemic slowdown. The company’s strategic expansion of collaboration tools has evidently paid off, propelling its positive outlook.
Following this announcement, the shares of the video-conferencing platform surged by over 4% during after-hours trading.
Throughout the pandemic, prominent video conferencing platforms, such as Zoom, Microsoft’s Teams (MSFT.O), and Cisco’s Webex (CSCO.O), have become integral to households and businesses alike. These platforms facilitated seamless connections for remote work and social interactions.
Zoom, headquartered in San Jose, California, has projected an adjusted profit per share ranging between $1.07 and $1.09 for the upcoming third quarter. This forecast surpasses analysts’ average estimate of $1.03 per share, based on data from Refinitiv.
Furthermore, Zoom’s projected third-quarter revenue ranges from $1.115 billion to $1.120 billion, slightly below analysts’ average expectation of $1.13 billion, according to Refinitiv data.
For the quarter ending on July 31, the company’s revenue surged by 3.6% to $1.14 billion, exceeding analysts’ average projections of $1.12 billion.
Notably, Zoom’s second-quarter profit, excluding exceptional items, amounted to $1.34 per share, marking a significant increase from $1.05 per share in the corresponding period the previous year.