Zoom Video Communications on Monday posted better-than-expected results for the fourth quarter, helped by strong demand for its expanding product portfolio as more employers embrace hybrid work models, sending its shares up about 12% in extended trading.
Zoom also authorized a stock buyback of up to $1.5 billion of its outstanding Class A common stock.
The results indicate Zoom’s attempts to integrate artificial intelligence (AI) into its products and diversify its portfolio have paid off, as the video-conferencing provider takes advantage of a surge in hybrid working.
It reported adjusted profit of $1.42 per share for the quarter ended Jan. 31, above analysts’ estimates of $1.15 per share, according to LSEG data. Revenue stood at $1.15 billion, beating an estimate of $1.13 billion.
Zoom introduced its AI companion during its third quarter, allowing paid users to access features including meeting summaries and catch-ups, as well as email and chat composing prompts.
The company also reported operating cash flow margin of 30.6% for the reported quarter.
Zoom forecast fiscal-year 2025 revenue of about $4.60 billion, which is below analysts’ estimate of $4.66 billion.