Zoom shares rose as much as 8% in extended trading on Monday after the video-calling software provider announced fiscal second-quarter results that exceeded analysts’ expectations.

As a result, the company did the following:

Refinitiv estimates $1.05 per share in earnings for the quarter, but Refinitiv reported $1.34, adjusted.

Analysts expected $1.12 billion in revenue, but Refinitiv reported $1.14 billion.

The company’s revenue grew 3.6% from the same quarter last year, according to a statement. One year ago, the company earned $45.7 million, or 15 cents per share, in the fiscal second quarter, compared to $182 million in the fiscal third quarter.

Despite that, the company is moving at a much slower pace than it was two years ago, when the arrival of Covid enabled companies and schools to create premium accounts and collaborate remotely.

As of April 30, the company claimed 218,100 enterprise customers, up 1% from 215,900. The Zoom sales team, resellers and partners work with enterprise clients.

Zoom fell just short of its quarterly guidance. According to executives, the company expects adjusted earnings per share to be between $1.07 and $1.09 on revenue of $1.115 billion and $1.120 billion. Among analysts polled by Refinitiv, $1.03 in adjusted earnings per share and $1.13 billion in revenue were expected.

Zoom’s full-year forecast was raised by management. In the full fiscal year 2024, executives expect adjusted earnings per share to be between $4.63 and $4.67, and revenue to be between $4.485 billion and $4.495 billion. At the middle of the range, revenue growth is expected to be 2%. Zoom expected to earn $4.25 to $4.31 in adjusted earnings per share and to generate $4.465 billion to $4.485 billion in revenues three months ago. Refinitiv’s analysts predicted Zoom would earn $4.30 per share and generate $4.49 billion in revenue this year.

In an analyst call, Zoom’s finance chief Kelly Steckelberg said the company’s increased total revenue guidance reflects a consistent view of enterprise with tempered expectations for online for the rest of the year.

The sales cycle remains longer than usual, she said.

According to her, clients make sure they do their full due diligence.

Zoom is also working to optimize its spending, including on cloud services, and its sales and marketing expenditures have been slowing.

In the quarter, Zoom said certain customers could request call summaries without recording conversations through free trials, and the company invested in an artificial intelligence startup.

CEO Eric Yuan says Zoom will not charge a “crazy price” for artificial-intelligence features on top of existing software, unlike some of its competitors. According to him, that’s unfair to customers. Adding AI capabilities to existing software services would be better, he said.

According to Steckelberg, Zoom’s contact center software for customer service is small, but growing fast.

Zoom failed in its attempt to acquire Five9. Contact center software is “highly disruptive,” Steckelberg said.

In spite of the after-hours move, Zoom stock has declined about 1% this year, while the S&P 500 index has risen 15%.