Zoom Video Communications has raised its annual revenue forecast, projecting fiscal 2025 revenue to be between $4.63 billion and $4.64 billion, up from the previous estimate of $4.61 billion to $4.62 billion. This adjustment reflects strong demand for its AI-powered collaboration tools, which are becoming increasingly vital in hybrid work environments.
The company’s success in expanding its AI-driven services is exemplified by the Zoom Contact Center, an omnichannel platform providing personalized responses for businesses. This platform secured several high-profile clients and achieved its largest single-order deal to date in the second quarter. Additionally, Zoom reported a 7.1 percent increase in large accounts, defined as those generating more than $100,000 in trailing 12-month revenue, and saw its online average monthly churn reach an all-time low.
Jeremy Goldman, Senior Director of Briefings at Emarketer, commented that Zoom’s performance indicates the company is reinforcing its position for sustained growth, rather than merely maintaining its current standing. However, Goldman also emphasized the need for Zoom to continue innovating and expanding its product offerings to maintain investor interest and long-term growth.
In a notable development, Kelly Steckelberg, Zoom’s CFO since 2017, will step down following the earnings announcement for the quarter ending October 31. Steckelberg has been a key figure in the company’s growth, including its successful IPO in 2019. Zoom has commenced a search for her successor.
For the second quarter, Zoom reported revenue of $1.16 billion, surpassing LSEG estimates of $1.15 billion, and earned $1.39 per share on an adjusted basis, exceeding analysts’ predictions of $1.21.
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