Zoom forecasts strong current quarter on work-from-home; shares rise

FILE PHOTO: Small toy figures are seen in front of diplayed Zoom logo in this illustration taken March 19, 2020. REUTERS/Dado Ruvic/Illustration

(Reuters) – Zoom Video Communications forecast current-quarter revenue above expectations, as the video-conferencing platform benefits from increased users due to remote work and online learning against the backdrop of broader stay-at-home orders.

The company’s shares, which more than quadrupled in 2020, rose 9% to $448 in after-market trading on Monday.

Video conferencing services such as Zoom stand to benefit from the adoption of hybrid work models by many businesses, part work-from-office and part work-from home, that demand the usage of its platform to stay connected.

The company forecast current-quarter revenue between $900 million and $905 million, compared with estimates of $829.2 million, according to IBES Refinitiv data.

Zoom users have surged in the past year, as more people used it for socializing, virtual meetings and e-classes. The platform said it has 1,644 customers contributing more than $100,000 in trailing 12 months revenue, more than double from a year earlier.

The company reported quarterly revenue of $882.5 million, compared with estimates of $811.8 million.

On an adjusted basis, the Zoom earned $1.22 per share, beating estimates of 79 cents per share.

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