By Dhirendra Tripathi
Investing -- Shares of Zoom Video (NASDAQ:ZM) rose 2% in Wednesday’s premarket trading as work-from-home lifestyle fueled its April quarter performance and helped it raise guidance for the ongoing financial year.
Zoom was ‘almost’ born out of the pandemic as both companies and individuals turned to its application to connect and make one-to-one as well as group video calls to communicate and check on each other while workplaces and commuting were shut.
Thanks to its easy-to-use features and clarity, it left behind rivals like Microsoft Teams (NASDAQ:MSFT) and Google Meet (NASDAQ:GOOGL) to notch up big subscriber numbers during the pandemic.
Many believe Zoom’s glory may be short-lived as more people return to work and offices use other applications at work but the company’s management exuded confidence that a hybrid working model that incorporates both home and office work is here to stay.
The company now expects total revenue for the full fiscal year 2022 to come between $3.97 billion and $3.99 billion. This was earlier seen between $3.76 billion and $3.78 billion.
Zoom’s first quarter total revenue rose 191% year-on-year to $956.2 million.
The company had approximately 497,000 customers with more than 10 employees at the end of April. This was up 87% from the same period a year ago.
GAAP net income rose more than 8 times to $227.4 million, up from $27 million.