By Juby Babu
(Reuters) – Zoom Video Communications Inc on Wednesday raised its full-year revenue forecast and said Kelly Steckelberg would step down as chief financial officer, citing strong demand for its AI-powered collaboration tools being adopted in hybrid work arrangements.
Shares of the video conferencing provider rose 3% after the close of trading.
Zoom is stepping up efforts to integrate artificial intelligence into its products, expand the reach of its services, and capitalize on the growing trend toward hybrid work.
Zoom Contact Center, the company's AI-powered omnichannel platform that gives businesses personalized interactions with customers, won several high-profile accounts in the second quarter, including its largest single order deal to date.
Zoom said it saw a 7.1% increase in the number of large customers — those who made more than $100,000 in revenue in the past 12 months — and that its average monthly online churn rate also hit an all-time low.
This shows that Zoom is “doing more than just standing its ground. They're strengthening their base and preparing for the long haul,” said Jeremy Goldman, senior director of briefings at eMarketer.
“The company needs to continue to innovate and expand its product lineup. Zoom's challenge will be to maintain this momentum by proving it's not a pandemic one-hit wonder and delivering the kind of continued growth that keeps investors optimistic about its long-term prospects,” Goldman said.
Zoom said it has begun a search for a replacement for Steckelberg, whose last day at the company will be the day after it reports earnings for the quarter ending Oct. 31.
Steckelberg has served as Zoom's CFO since 2017 and led the company through its successful IPO in 2019.
The company now expects fiscal 2025 revenue to be between $4.63 billion and $4.64 billion, down from its previous forecast of $4.61 billion to $4.62 billion.
Second-quarter revenue was $1.16 billion, beating LSEG's forecast of $1.15 billion.
The company's adjusted earnings per share were $1.39, beating analysts' expectations of $1.21.
(Reporting by Juby Babu in Mexico City; Editing by Shilpi Majumdar)
