Wednesday 2 June 2021 7:45 am

Zoom boss says home working is here to stay as app hikes forecasts

The shift to home working will be a permanent change to working habits, the boss of Zoom has said, as his company hiked its forecasts for the full year.

“Work is no longer a place, it’s a space where Zoom serves to empower your teams to connect and bring their best ideas to life,” said Eric Yuan, the video app’s founder and chief executive.

“We are energised to help lead the evolution to hybrid work that allows greater flexibility, productivity, and happiness to both in-person and virtual connections.”

The comments came as Zoom last night hiked its expectations for full year revenue to just under $4bn (£2.8bn) — up from the $3.8bn it previously forecast.

The California-based company forecast current second-quarter revenue of between $985m and $990m, above estimates of $931m, according to IBES Refinitiv data.

Shares rose two per cent in after-hours trading after initially falling as much as five per cent on higher costs.

Zoom has become a household name during the pandemic, enjoying a surge in user numbers as the world adapted to the remote working era.

But analysts have questioned whether the platform can maintain momentum amid complaints of Zoom fatigue, competition from social media rivals and a gradual return to the office.

The company has begun to introduce new features to help future-proof its offering, including an events platform and launching a $100m venture fund to invest in productivity apps.

But the bullish outlook on remote working is likely to calm some nerves about its continued success.

For the first quarter Zoom reported revenue of $956m — up 191 per cent year on year. Net profit rose to $227m from just $27m last year.