Zoom Video Communications Boosts Revenue Forecast with AI-Powered Collaboration Tools | Best Financial Market News
Zoom Video Communications (NASDAQ:ZM) has raised its annual revenue forecast, citing strong demand for its AI-powered collaboration tools in hybrid work models. This move has propelled its shares up by 4% in extended trading.
The video-conferencing provider has been focusing on integrating artificial intelligence into its products and expanding its services to capitalize on the increasing popularity of hybrid work setups.
One of its recent launches is Zoom Workplace, a comprehensive collaboration platform that includes features like "Zoom Docs" and facilitates communication, calling, and file management for teams through its AI companion.
Zoom now expects its revenue for fiscal 2025 to be in the range of $4.63 billion to $4.64 billion, up from the earlier forecast of $4.61 billion to $4.62 billion. Analysts, on the other hand, had estimated an average of $4.62 billion, according to LSEG data.
In conclusion, Zoom Video Communications' strategic focus on AI-powered collaboration tools and expansion into the hybrid work market has led to a positive outlook for its revenue growth. Investors may find this development promising as it indicates the company's ability to adapt to evolving work trends and capitalize on emerging opportunities in the digital workspace.