Zoom Video Communications Inc (NASDAQ:ZM) has wrested back some of its year-to-date losses following a relatively bullish second-quarter trading update.
Initial second-quarter guidance outlined by Zoom in May underwhelmed the Street, but conservative revenue estimates of between $1.145 billion and $1.15 billion evidently downplayed the video messaging platform’s resilience in the quarter.
Total quarterly revenue came to $1.16 billion, which while only up 2.1% year over year, still managed to outperform the analyst consensus forecast of $1.15 billion.
Free cash flow was significantly high at $365.1 million, representing a 26.2% year-on-year increase.
Zoom did not outline the catalysts for its enhanced cash position, save for “our continued commitment to efficient growth”.
The group has signalled a push into adopting artificial intelligence into its operations, which may have contributed to enhanced cost savings.
Third-quarter guidance of total revenue between $1.160 billion and $1.165 billion was given the thumbs up from the market, with Zoom shares adding more than 3% in Thursday’s pre-market session.
Though at $62.15 per share, Zoom is a minnow compared to what it was in the Covid-era boom when its share price soared as high as $559.