(Reuters) – Zoom Video Communications topped estimates for third-quarter results on Monday, as the video-conferencing platform benefited from the launch of its new offerings that helped boost demand as businesses adopt hybrid models of work.
The company also forecast current-quarter revenue and earnings above expectations, and raised its full-year revenue estimate to around $4.08 billion from about $4.01 billion earlier.
Its recently launched Events platform, where businesses can host large-scale conferences, coupled with Zoom Phone and Zoom Rooms has helped the company compete better with rival platforms such as Microsoft Teams, Cisco Webex as well as Slack.
The pandemic-winning stock rose about 1% in extended trading, after having lost about 28% this year as investor enthusiasm in the stock waned after the coronavirus-led boom cooled and people started venturing outdoors.
The company has been attempting to convert its short-term pandemic gains into longer-term financial returns by attracting enterprise customers against the backdrop of a failed deal to acquire cloud-based customer contact software firm Five9.
Zoom said it had about 512,100 customers with more than 10 employees at the end of the quarter, which is an 18% jump from a year earlier.
The company reported a profit of $1.11 per share and revenue of $1.05 billion in the third quarter ended Oct. 31, beating Wall Street’s estimates for a profit of $1.09 per share and revenue of $1.02 billion.
(Reporting by Akash Sriram and Eva Mathews in Bengaluru; Editing by Amy Caren Daniel)
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