Zoom Video Communications (ZM) stock surged 5.43% in after-hours trading on Thursday following the release of its fiscal first-quarter earnings report, which exceeded analyst expectations on both the top and bottom lines.

The video communications company reported adjusted earnings per share of $1.55, beating the consensus estimate of $1.42, while revenue of $1.239 billion topped expectations of $1.223 billion. Enterprise revenue grew 7.2% year-over-year to $755.7 million, and the company highlighted strong momentum in its AI initiatives, with AI Companion paid users increasing 184% from the prior year.

Zoom also raised its full-year outlook, now expecting adjusted EPS of $5.96 to $6.00 versus previous estimates of $5.87, and revenue of $5.08 billion to $5.09 billion compared to prior guidance. Additionally, the company announced a $1 billion increase to its stock repurchase authorization, signaling confidence in its financial position and commitment to returning value to shareholders.