Zoom Ups Revenue Forecast Amid Rising Demand for AI Tools in Hybrid Work Models
Zoom Video Communications has raised its annual revenue forecast, driven by increasing demand for its AI-enhanced collaboration tools designed for the hybrid work environment. The company also announced that CFO Kelly Steckelberg will step down, prompting a search for her successor.
Zoom’s shares saw a 3% increase following the announcement, reflecting investor confidence in the company’s strategic direction. The revised revenue forecast for fiscal 2025 now ranges between $4.63 billion and $4.64 billion, up from the previous estimate of $4.61 billion to $4.62 billion.
The boost in revenue projections is attributed to the strong performance of Zoom’s AI-powered products, including the Zoom Contact Center, which offers an omnichannel platform for businesses to provide personalized customer responses. This platform has attracted several high-profile clients and secured the company’s largest single-order deal to date in the second quarter. Large accounts, those generating more than $100,000 in trailing 12-month revenue, grew by 7.1%, signaling robust demand for Zoom’s services.
Jeremy Goldman, Senior Director of Briefings at Emarketer, commented on Zoom’s performance: “The company is not just maintaining its position but reinforcing its foundation for long-term success. Zoom needs to continue innovating and expanding its product offerings to prove it’s more than just a pandemic phenomenon and keep investors engaged with its growth trajectory.”
Steckelberg, who has served as Zoom’s CFO since 2017 and played a key role in the company’s successful IPO in 2019, will conclude her tenure the day after the company announces its earnings for the quarter ending October 31. The search for her replacement is already underway.
In its second-quarter results, Zoom reported revenue of $1.16 billion, surpassing LSEG estimates of $1.15 billion. The company also reported adjusted earnings of $1.39 per share, exceeding analysts’ expectations of $1.21 per share.
As Zoom continues to expand its AI capabilities and adapt to the evolving hybrid work landscape, it remains focused on driving sustained growth and innovation.