Zoom forecast annual profit above estimates, shares up

(Reuters) -Zoom Video Communications Inc on Monday forecast annual profit above Wall Street estimates, benefiting from cost-cutting measures and steady demand for its video-conferencing service from the ongoing shift to hybrid work models.

Shares of the San Jose, California-based company rose 6% in trading after the bell.

Zoom became a household name during the pandemic when many organizations 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 webinars to attract both small and large businesses amid high competition and slow economic growth.

Zoom forecast annual profit between $4.11 per share and $4.18 per share, compared with estimates of $3.66 per share, according to Refinitiv data.

Revenue for the quarter ended Jan. 31 was $1.12 billion, compared with analysts’ average expectation of $1.10 billion.

However, the company expects fiscal 2024 revenue to be between $4.44 billion and $4.46 billion, compared with analysts’ average estimate of $4.60 billion.