Zoom lifts annual results forecast as AI features boost demand

By Samrhitha A

(Reuters) -Zoom Video Communications raised its annual revenue and profit forecasts on Monday, as hybrid work trends and the integration of artificial intelligence technology into its products boosted demand.

Platforms including Zoom, Microsoft's Teams and Cisco's Webex became household names during the COVID lockdowns and have enjoyed resilient demand as many businesses shifted to hybrid work models.

Zoom now expects annual adjusted profit per share between $4.93 and $4.95, higher than its prior forecast of $4.63 and $4.67.

The company lifted its full-year revenue forecast to between $4.506 billion and $4.511 billion, from $4.485 billion to $4.495 billion earlier.

"We bolstered Zoom's all-in-one intelligent collaboration platform with advanced new capabilities like Zoom AI Companion and continued to evolve our customer and employee engagement solutions," CEO Eric Yuan said.

Zoom's AI Companion, introduced during the third quarter, allows paid users to access features including meeting summaries and catch-ups, as well as email and chat composed prompts. More than 220,000 accounts had enabled it as of Monday.