Zoom jumps after beating expectations and raising its full-year guidance

Zoom jumped more than 9% in early trading after reporting revenue and earnings that beat analyst expectations and raising its full-year guidance.

The video communications company posted adjusted earnings per share of $1.53 and revenue of $1.22 billion in the second quarter, compared with analysts’ estimates for earnings of $1.38 a share and $1.2 billion of revenue.

Zoom also boosted its full-year forecast, saying it expects revenue in constant currency between $4.82 billion and $4.83 billion and adjusted earnings of $5.81 to $5.84 a share. The company had previously forecast revenue between $4.81 billion and $4.82 billion and EPS ranging from $5.56 to $5.59.

The company said its use of AI helped it have a strong second quarter.

“AI is transforming the way we work together, and Zoom is at the forefront, driving innovation that helps people get more done, reduce costs, and deliver better experiences for customers and employees alike,” Zoom founder and CEO Eric S. Yuan said.

The results pleased investors and analysts alike, including Wedbush Securities’ Dan Ives, who wrote: “This was another solid quarter by ZM as the company’s new GTM strategy gains further traction while improving its product portfolio with AI front and center to capitalize on the growth opportunities across the enterprise landscape while the online business continues to stabilize.”