The Zoom Video Communications logo is pictured at the NASDAQ MarketSite in New York, New York, U.S., April 18, 2019. REUTERS/Carlo Allegri/file photo
(Reuters) -Zoom Video Communications forecast third-quarter profit above Wall Street estimates on Monday, a positive sign for the company that has tried to overcome a post-pandemic slowdown by offering a wider range of collaboration tools.
Shares of the video-conferencing platform rose more than 2% in trading after the bell.
"Solid improvement in earnings outlook on what we assume will be opex (operating expense) efficiencies is driving the stock a notch in response," Needham and Co analyst Ryan Koontz said.
Video conferencing platforms including Zoom, Microsoft's Teams and Cisco's Webex among others became household names during the pandemic as businesses and individuals turned to them for connecting with employees and friends.
The San Jose, California-based company expects adjusted profit per share between $1.07 and $1.09 for the third quarter, above analysts' average estimate of $1.03 per share, according to Refinitiv data.
Zoom expects third-quarter revenue between $1.115 billion and $1.120 billion for the quarter, compared with analysts' average estimate of $1.13 billion, according to Refinitiv data.
"There are a lot of new products on the table, of which none appear to be major contributors to revenue growth yet," Koontz added.
Revenue for the quarter ended July 31 rose 3.6% to $1.14 billion, above analysts' average expectations of $1.12 billion.
Excluding items, the company posted second-quarter profit of $1.34 per share, compared with target estimate of $1.05 per share.
Second-quarter enterprise revenue of the company rose 10.2% to $659.5 million.
Zoom raised its annual revenue forecast to between $4.49 billion and $4.50 billion, compared with its earlier forecast of between $4.47 billion and $4.49 billion.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Krishna Chandra Eluri)
