Video conferencing software corporations Zoom, buoyed by an expansion of its artificial intelligence (AI) business, posted quarterly results that beat market expectations and raised its full-year revenue outlook.
Zoom said in its earnings release on the 21st (local time) that first-quarter revenue for the period ended in April rose 5.5% from a year earlier to $1.24 billion (about 1.86 trillion won). That slightly topped Wall Street's estimate of $1.22 billion. Adjusted earnings per share (EPS—the value obtained by dividing net income by the total number of shares outstanding), excluding one-time expenses, was $1.55.
Zoom also revised its full-year revenue outlook. The company projected revenue for fiscal year 2027 (February 2026–January 2027) would reach as much as $5.09 billion (about 7.67 trillion won). That exceeds both Zoom's previous top-end guidance of $5.08 billion and the market consensus of $5.07 billion.
Zoom said it expects to continue top-line growth as customers adopt its various AI-based workplace collaboration tools beyond video conferencing services. Zoom Chief Executive Officer Eric Yuan said, "The number of paying users of Zoom's 'AI Companion' nearly tripled from a year earlier." AI Companion is a Generative AI assistant that supports work by automatically summarizing or analyzing meeting, chat, email, and phone content.
On the positive outlook, Zoom's stock closed at $96.75, up 2.69% from the previous day. It has risen about 12% so far this year. Citigroup said, "The fact that Zoom holds equity in the rapidly growing Anthropic is also supporting investor sentiment."