Zoom raises annual revenue forecast by more than 30%

Zoom Video Communications raised its annual revenue forecast by more than 30 percent.

Shares of Zoom have surged almost four-fold this year. The stock price is poised to to climb to even loftier heights.

The company reported that its revenue for the May-July period more than quadrupled from the same time last year to $663.5 million, boosted by a steadily rising number of users converting from the free to paid version of Zoom’s service.

The company’s gross profit rose to 71 percent from 68 percent, but remains far below the 80 percent range Zoom operated at before free users flocked to the service.

The company, founded and headed by former Cisco manager Eric Yuan, raised its annual revenue target for fiscal year 2021 to a range of $2.37 billion to $2.39 billion, from $1.78 billion to $1.80 billion previously.