Zoom raises annual forecasts, banks on AI features to drive demand

May 21 (Reuters) - Zoom ‌Communications raised ​its ​annual revenue and profit forecasts on Thursday, betting on strong demand ‌for its AI features as the video ⁠conferencing platform looks to shore up enterprise and ‌consumer spending.

Shares of the ‌company were up more than 7% in extended trading.

Zoom has been extensively integrating AI ​tools, including agents and companions, into its video meeting and communication services, to ⁠boost its appeal and attract more enterprise customers.

Here are more ​details:

• The company now expects fiscal 2027 revenue of between $5.08 billion and $5.09 billion, ​compared with its earlier ‌forecast of $5.07 billion to $5.08 billion.

• It raised its annual adjusted earnings ⁠per share (EPS) outlook to between $5.96 and $6, compared with its prior forecast of $5.77 to $5.81.

• The platform also ⁠authorized an additional $1 billion share buyback.

• Zoom forecast ​second-quarter revenue between $1.26 billion and $1.27 billion, compared with estimates of $1.27 billion, according to data compiled by LSEG.

• ‌It expects quarterly adjusted EPS between $1.45 and $1.47, compared with analysts' average estimate ‌of $1.48.

• Revenue for the first quarter ended ⁠April 30 came ‌in at $1.24 billion, ​beating estimates of $1.22 billion.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Diti ‌Pujara)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• SanDisk upgraded at JPMorgan after investor day; shares climb
• Cisco rating cut at HSBC as analyst sees a lack of catalysts