Zoom raises annual revenue and profit forecasts, expands share repurchase
Adds details and background from paragraph 5 onwards, shares in paragraph 10
Nov 25 (Reuters) -Zoom Video Communications ZM.O raised its forecast for fiscal 2025 revenue and adjusted profit on Monday, anticipating robust demand for its online video conferencing software as it expands its product portfolio, and clients embrace hybrid working models.
Zoom also said it would expand its share repurchase plan by $1.2 billion.
The company expects revenue in the range of $4.65 billion to $4.66 billion, from its earlier forecast of between $4.63 billion and $4.64 billion.
Zoom's online meeting services continue to see strong spending from its large enterprise client base as hybrid working models become the norm in many firms and its push to integrate artificial intelligence makes it a staple for many companies' operations.
It raised its forecast for full-year adjusted earnings per share to a range of $5.41 and $5.43 per share, compared with the $5.29 to $5.32 previous range.
However, the company faces stiff competition from rival video conferencing services such as Microsoft's Teams MSFT.O and Cisco's Webex CSCO.O as they battle for client dollars in a crowded market.
Zoom launched an upgraded version of its AI companion in October, which allows users to get meeting insights, get data from other applications and helps them complete tasks.
The company reported revenue of $1.18 billion for the third quarter, beating estimates of $1.16 billion, as per data compiled by LSEG.
For the fourth quarter, the company forecast revenue between $1.17 billion and $1.18 billion, compared with estimates of $1.17 billion.
Shares of the San Jose, California-based company were marginally down in extended trading after closing up over 3.5%.
Reporting by Zaheer Kachwala in Bengaluru; Editing by Alan Barona
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