Zoom Video Communications on Monday forecast annual profit above Wall Street estimates, benefiting from cost-cutting measures and steady demand for its video-conferencing service from the continuing shift to hybrid work models.
Shares of the San Jose, California company rose 6 per cent in trading after the bell.
Zoom became a household name during the pandemic when many organisations stuck with lockdowns flocked to its platform to maintain easy communication with its employees.
The company has expanded its offerings to include connected conference rooms, cloud-calling products, workspaces and online seminars to attract small and large businesses amid high competition and slow economic growth.
Zoom forecast annual profit between $4.11 and $4.18 a share, compared with estimates of $3.66 a share, according to Refinitiv data.
Revenue for the quarter that ended on January 31 was $1.12 billion, compared with analysts' average expectation of $1.10 billion.
But the company expects fiscal 2024 revenue to be between $4.44 billion and $4.46 billion, compared with analysts' average estimate of $4.6 billion.
