Zoom share jump in afterhours, AI demand saw revenue and earnings beat expectations

Shares in Zoom Video Communications (NASDAQ:ZM) advanced in Wednesday’s afterhours trading after it reported a strong set of financial results for its second quarter.

Revenue totalled $1.16 billion for the quarter which was slightly above the market forecast of $1.15 billion.

Earnings per share was reported at $1.39 per share, comfortably above Wall Street estimates of $1.21.

It comes as Zoom saw increased demand for its AI-powered products.

Notably, the company also highlighted that it had a 7.1% increase in large customer accounts (this segment is defined as customers generating $100,000 per year to Zoom). Overall, enterprise revenue was up 3.5% year-over-year, it added.

Zoom raised its full-year revenue forecast to a range of $4.63 billion to $4.64 billion, and, also upgraded its guidance for the third quarter – with the communications platform now expecting earnings per share between $1.29 and $1.31, on revenue of $1.16 billion to $1.165 billion.

In afterhours deals, Zoom shares were up $2.02 or 3.35%, to $62.25, adding to the 1.86% gain seen in Wednesday's regular trading session in New York.