Zoom Video Communications raised its fiscal 2025 revenue and profit forecasts on Monday, citing strong demand for its video conferencing services and growth in hybrid work models. The company also announced a $1.2 billion expansion of its share buyback program.
Despite these announcements, Zoom’s stock dipped 3% in extended trading after closing up 3.5%. Analysts attribute this to profit-taking ahead of the Thanksgiving holiday week.
Zoom now projects revenue between $4.65 billion and $4.66 billion, up from its earlier range of $4.63 billion to $4.64 billion. Adjusted earnings per share for the fiscal year are expected to range from $5.41 to $5.43, higher than the previous estimate of $5.29 to $5.32.
For the third quarter ending October 31, Zoom reported $1.18 billion in revenue, surpassing analyst estimates of $1.16 billion. Adjusted earnings per share were $1.38, exceeding expectations of $1.31.
Enterprise clients now account for 59% of Zoom’s total revenue, reflecting the company’s focus on business customers. However, it continues to face competition from Microsoft Teams and Cisco’s Webex in a competitive market.
