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Zoom, Microsoft's Teams and Cisco's Webex became popular platforms during the COVID lockdowns and have maintained strong demand as many businesses adopted hybrid work models.
Zoom raised its annual adjusted profit per share forecast to between $4.93 and $4.95, up from its previous range of $4.63 and $4.67.
The company also increased its full-year revenue forecast to between $4.506 billion and $4.511 billion, from $4.485 billion to $4.495 billion earlier.
CEO Zoom Eric Yuan said the company enhanced its intelligent collaboration platform with new features like Zoom AI Companion and continued to improve its customer and employee engagement solutions.
Zoom AI Companion, launched during the third quarter, allows paid users to access features such as meeting summaries and catch-ups, as well as email and chat composed prompts. More than 220,000 accounts had enabled it as of Monday.
The company's quarterly free cash flow rose 66.2% to $453.2 million, and Zoom expects $1.34 billion to $1.35 billion for the full year.
RBC analyst Rishi Jaluria said the cash flow was the highlight, and also noted the growth of Phone and Contact Center segments. "This gives us more confidence that we can see growth re-accelerate in the near term," he said.
