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Zoom Jumps on Sales Forecast, Signaling Success of New Products

  • CEO Yuan touts effort to expand service for enterprise clients
  • Company projects revenue, profit that tops analysts’ estimates
     

     

Photographer: Tiffany Hagler-Geard/Bloomberg
Updated on

Zoom Video Communications Inc. offered a glimpse of optimism that it can expand beyond its consumer-friendly video software that helped the company to a pandemic boom. Investors who have soured on Zoom aren’t entirely convinced.

The software maker projected revenue would increase about 10% in the current period, better than analysts’ estimates, but still its slowest quarterly sales growth. The shares initially jumped 21% in extended trading after the company announced results, though they gave up most of the gains and were up only 2.4% in early trading in New York on Tuesday.