Zoom Raises Outlook After Quarterly Profit, Revenue Surge.

"Shares of Zoom Video Communications jumped late Monday after the company boosted its outlook following better than expected third-quarter results.

The stock was up 5.2% to $69.40 in after-hours trading Monday. Shares had been down 2.6% this year through Monday's close.

The San Jose, Calif.-based video teleconferencing company said that higher retention in its online business and usage of its new artificial intelligence offerings helped produce revenue higher than it expected.

Zoom had about 219,700 enterprise customers at the end of the quarter, up 5% from a year ago, while its churn rate fell.

Here's how the company did in the third quarter:

Sales rose 3.2% to $1.14 billion, topping the $1.12 billion expected by analysts, according to FactSet.

Earnings came to $141.2 million, or 45 cents a share, compared with $48.4 million, or 16 cents a share, a year earlier.

Analysts expected per-share profit of 28 cents.

Zoom now expects full year revenue of roughly $4.5 billion, slightly higher than its prior outlook, and adjusted earnings between $4.93 and $4.95 a share, up from $4.63 and $4.67 a share." [1]

1. Business News: Zoom Raises Outlook After Quarterly Profit, Revenue Surge. Glickman, Ben.  Wall Street Journal, Eastern edition; New York, N.Y.. 21 Nov 2023: B.3.