Zoom Video Communication’s third-quarter earnings were above expectations, as the video-conferencing platform profited from the debut of additional solutions, which helped raise demand as organizations adopted hybrid forms of work.
The business also forecasted higher-than-expected current-quarter sales and profitability and boosted its full-year revenue projection to roughly US$4.08 billion (A$5.64 billion) from around US$4.01 billion (A$5.55 billion) before.
Its recently announced Events platform, which allows enterprises to host large-scale conferences and Zoom Phone and Zoom Rooms, has helped the firm compete more effectively with competing platforms such as Microsoft Teams, Cisco Webex, and Slack.
The pandemic-winning stock climbed nearly 1% in extended trading after losing about 28% this year as investor excitement dimmed as the coronavirus-led surge slowed and people began venturing outdoors. In the aftermath of a failed bid to purchase cloud-based customer contact software startup Five9, the company has been striving to convert its short-term epidemic benefits into longer-term financial rewards by courting enterprise clients.
Zoom reported 512,100 clients with more than ten workers at the end of the quarter, an 18% increase from the previous year.
In the third quarter ended October 31, the firm reported a profit of US$1.11 per share and sales of US$1.05 billion, topping Wall Street’s projections of a profit of US$1.09 per share and revenue of US$1.02 billion.