Zoom Projects $4.83 Billion in FY Revenue, Raises Forecast Amid AI Tool Uptake

Zoom Communications Inc. reported Q2 revenue of $1.22 billion, up 4.7% YoY, and raised its FY23 sales outlook to $4.83 billion. The company's expanded line of software products, including an AI assistant, has seen strong adoption, with 4,274 customers contributing over $100,000 each in the past year. Zoom's shares gained 5% in extended trading after closing at $73.17.

Zoom Communications Inc. (NASDAQ: ZM) reported its second-quarter (Q2) fiscal 2025 revenue of $1.22 billion, marking a 4.7% year-over-year (YoY) increase. The company also raised its fiscal year 2023 (FY23) sales outlook to $4.83 billion, reflecting robust performance and market demand. Notably, Zoom's expanded software product line, including its AI assistant, has seen strong adoption, with 4,274 customers contributing over $100,000 each in the past year.

The company's share price gained 5% in extended trading following the announcement, closing at $73.17. This positive reaction underscores investor confidence in Zoom's strategic direction and the potential of its AI-driven enhancements.

Zoom's AI Concierge and AI Companion features, introduced in recent quarters, are designed to automate customer support and scheduling, thereby enhancing user experience and driving revenue growth. These innovations are part of Zoom's broader strategy to penetrate deeper into the enterprise market and elevate user experience across various industries [1].

Analysts predict a 3.1% annual revenue growth and a 3.52% annual earnings growth for Zoom. The current share price is 23.7% below the average analyst price target of $91.07, indicating potential for upward movement in the share price [1]. Despite these positive projections, Zoom faces intense competition from Microsoft MSFT Teams, RingCentral RNG, and Cisco CSCO Webex, which have been aggressively pushing their collaboration tools.

Zoom is expected to release its Q2 fiscal 2026 results on August 21, with revenue projections ranging between $1,195 million and $2 billion, and non-GAAP earnings per share expected to be in the range of $1.36-$1.37, indicating a cautious outlook despite strong execution in the first quarter [2][3].

References:
[1] https://www.ainvest.com/news/zoom-communications-unveils-ai-concierge-zoom-hub-features-2508/
[2] https://www.nasdaq.com/articles/zoom-video-gears-report-q2-earnings-whats-cards
[3] https://finance.yahoo.com/news/zoom-video-gears-report-q2-153000593.html