Zoom Video Communications raised its annual revenue forecast this week, driven by strong demand for its AI-powered collaboration tools deployed in hybrid work models.
The video-conferencing provider has been doubling down on efforts to integrate artificial intelligence into its products and expand its range of services and leverage the growing trend of hybrid work.
The company has launched Zoom Workplace as a collaboration platform, which contains other products like "Zoom Docs" and allows employees or teams to chat, call and manage files in one place with the help of its AI companion.
Zoom said large accounts, with customers contributing more than US$100,000 in trailing 12-month revenue, increased 7.1 per cent over the year earlier in the second quarter.
Online average monthly churn also reached its lowest ever rate during the period, it said.
Zoom expects fiscal 2025 revenue to be between US$4.63 billion and US$4.64 billion, compared with the US$4.61 billion and US$4.62 billion forecast earlier.
Analysts on average estimate US$4.62 billion, according to LSEG data.
Revenue for the quarter ended July 31 stood at US$1.16 billion, beating analysts' estimate of US$1.15 billion.
The company earned US$1.39 per share on an adjusted basis, compared with US$1.34 a year earlier.
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