SAN JOSE: Zoom Video Communications Inc. on Tuesday forecast current-quarter revenue above estimates, as increased adoption of hybrid work models by companies is expected to drive steady demand for its video conferencing tools.
Zoom became a household name and investor favorite in the past year, as businesses and schools switched to its services for virtual classes, office meetings and socializing.
But with rapid vaccination efforts and life slowly returning to normal, analysts are skeptical of the sustainability of Zoom’s growth, especially with rivals Microsoft, Cisco and Google snapping at its heels.
“The extent to which Zoom can compete sustainably with the likes of Cisco and Microsoft remains to be seen over the next few quarters as we begin to enter true COVID comparable quarters,” said Joe McCormack, senior analyst at Third Bridge.
However, the San Jose, California-based company assuaged some of those concerns by forecasting current-quarter revenue in the range of $985 million to $990 million, above Wall Street’s estimate of $931.8 million, according to IBES Refinitiv data.
Shares of the company were up 2 percent, after falling as much as 5 percent in after-market trading on higher costs. In the first quarter ended April 30, costs jumped 155 percent to $265 million.
The surging number of free users on Zoom’s platform has led to higher costs for the company, which operates some of its own data centers.
Zoom, which had come under scrutiny for security related issues, is shifting focus on its two-year-old cloud-calling product Zoom Phone and conference-hosting product Zoom Rooms as bigger players Facebook and Google amp up their video products.
Zoom posted adjusted profit of $1.32 per share on revenue that nearly tripled to $956.2 million in the quarter, compared with estimates of a profit of 99 cents and $906 million in revenue.
Zoom forecasts upbeat revenue, expects boost from hybrid work
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Zoom forecasts upbeat revenue, expects boost from hybrid work
- Zoom became a household name and investor favorite in the past year
- The surging number of free users on Zoom’s platform has led to higher costs for the company
Foreign media group slams Israel for refusing to lift Gaza press ban
- Foreign Press Association expresses 'profound disappointment' with Israeli government’s response to a Supreme Court appeal
- Israel has barred foreign journalists from independently entering the devastated territory since the war started
JERUSALEM: An international media association on Tuesday criticized the Israeli government for maintaining its ban on unrestricted media access to Gaza, calling the move disappointing.
The government had told the Supreme Court in a submission late Sunday that the ban should remain in place, citing security risks in the Gaza Strip.
The submission was in response to a petition filed by the Foreign Press Association (FPA) — which represents hundreds of journalists in Israel and Palestinian territories — seeking immediate and unrestricted access for foreign journalists to the Gaza Strip.
“The Foreign Press Association expresses its profound disappointment with the Israeli government’s latest response to our appeal for full and free access to the Gaza Strip,” the association said on Tuesday.
“Instead of presenting a plan for allowing journalists into Gaza independently and letting us work alongside our brave Palestinian colleagues, the government has decided once again to lock us out” despite the ceasefire in the territory, it added.
Since the outbreak of the Gaza war in October 2023, triggered by an attack on Israel by the Palestinian militant group Hamas, the government has barred foreign journalists from independently entering the devastated territory.
Instead, Israel has allowed only a limited number of reporters to enter Gaza on a case-by-case basis, embedded with its military inside the blockaded Palestinian territory.
The FPA filed its petition in 2024, after which the court granted the government several extensions to submit its response.
Last month, however, the court set January 4 as a final deadline for the government to present a plan for allowing media access to Gaza.
In its submission, the government maintained that the ban should remain in place.
“This is for security reasons, based on the position of the defense establishment, which maintains that a security risk associated with such entry still exists,” the government submission said.
The government also said that the search for the remains of the last hostage held in Gaza was ongoing, suggesting that allowing journalists in at this stage could hinder the operation.
The remains of Ran Gvili, whose body was taken to Gaza after he was killed during Hamas’s 2023 attack, have still not been recovered despite the ceasefire.
The FPA said it planned to submit a “robust response” to the court, and expressed hope the “judges will put an end to this charade.”
“The FPA is confident that the court will provide justice in light of the continuous infringement of the fundamental principles of freedom of speech, the public’s right to know and free press,” the association added.
The Supreme Court is expected to issue a ruling on the matter, though it is unclear when a decision will be handed down.
An AFP journalist sits on the board of the FPA.
