Zoom raises annual profit forecast on demand for video-conferencing services

(Reuters) -Zoom Video Communications Inc on Monday raised its annual profit forecast, betting on resilient demand for its video-conferencing service as more businesses transform to a hybrid work model.

Shares of the San Jose, California-based company rose nearly 3% in trading after the bell.

After recording blistering growth during the pandemic, Zoom has continued to attract high-paying enterprise customers as migration to cloud and digitization continue to be a priority, even as world economies are bracing for an economic downturn.

In a bid to keep its customers, the company is also consistently expanding its product portfolio.

Revenue for the quarter rose 5% to $1.1 billion, in line with analysts’ average expectation, according to Refinitiv data

The company now expects annual adjusted profit per share between $3.91 and $3.94, compared with $3.66 to $3.69 forecast earlier.

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