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Zoom beats quarterly revenue estimates

Zoom beats quarterly revenue estimates

Small toy figures are seen in front of the Zoom logo in this illustration picture taken March 15, 2021. (Photo: REUTERS/Dado Ruvic)

NEW YORK:  Zoom Video Communications on Tuesday (Jun 1) forecast better-than-expected revenue for the current quarter, after beating quarterly estimates, as the video-conferencing platform expects steady growth from remote work and online learning.

Zoom became a household name during the pandemic as businesses and schools switched to its video conferencing platform for virtual classes, office meetings and social catch-ups.

The platform reported it had about 2,000 customers contributing more than US$100,000 in trailing 12 months revenue, up about 160 per cent from a year earlier.

Zoom forecast current-quarter revenue in the range of US$985 million to US$990 million, above estimates of US$931.8 million, as businesses adopt hybrid work models that demand the usage of video-conferencing services.

Revenue in the first quarter ended April 30 rose to $956.2 million from $328.2 million a year earlier, beating analysts' average estimate of US$906 million, according to IBES Refinitiv data.

On an adjusted basis, the company earned US$1.32 per share, compared with estimates of 99 cents per share.

Zoom's shares fell as much as 5 per cent in after-market trading on higher costs, which jumped 155 per cent to US$265 million in the quarter, but pared losses to trade up 1.7 per cent later in the session.

The surging number of free users on Zoom's platform has ramped up costs for the company, which operates some of its own data centers.

Moreover, while Zoom's platform was one of the first to capitalise on the global shift to virtual work and online classes, platforms such as Microsoft Teams, Cisco Webex and Google Meet soon caught up.

Privacy concerns around the platform also led users to migrate to rival platforms.

Source: Reuters/ec

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