Zoom’s Earnings Top Expectations as Enterprise Revenue Climbs | Global News Avenue

Zoom Communications (ZM) released its third-quarter earnings after the close on Monday that exceeded analysts’ expectations and announced that the company’s name was changed from Zoom Video Communications to Zoom Communications.

The remote video communications company’s revenue rose 4% to $1.18 billion, topping analyst consensus compiled by Visible Alpha. Net profit was $207.1 million, or 66 cents per share, up from $141.21 million, or 45 cents per share, in the same period last year, beating expectations. Enterprise revenue rose 6% to $698.9 million, while online revenue was essentially flat at $478.7 million.

The company raised its full-year adjusted earnings per share Its revenue forecast was raised from $5.29 to a range of $5.32 to $5.41 to $5.43, and its revenue forecast was raised from $4.63 billion to a range of $4.64 billion to a range of $4.66 billion to $4.66 billion. Both figures were higher than analysts’ expectations.

Gains follow as Zoom adds new customers, AI products

As Zoom adds new customers and Committed to selling high-end sets with advanced Artificial Intelligence (AI) ability. Zoom said it had 3,995 customers who contributed more than $100,000 in trailing 12-month revenue as of the end of the third quarter, a year-over-year increase of 7.1%.

CEO Eric Yuan also cited the “major milestones” the company launched at a Zoomtopia event last month, including AI Companion 2.0 and paid AI add-ons.

Zoom’s stock price fluctuated between gains and losses in extended trading Monday following the news. The stock is up nearly 24% from the beginning of the year to Monday’s close.

Corrections and Updates – November 25, 2024: This article has been updated to reflect the company’s announcement that it will change its name from Zoom Video Communications to Zoom Communications.