The cloud-communications provider now projects adjusted earnings between $1.71 and $1.79 per share, a retreat from its previous guidance of $1.77 to $1.83. This downward revision occurred even as the company raised its annual revenue target to a range of $900 million to $910 million. Wall Street analysts had expected adjusted earnings of $1.80 per share on revenue of $890.9 million.

For the current quarter, the company anticipates adjusted earnings of 45 to 49 cents per share, trailing the 56 cents per share consensus estimate. These figures arrived alongside second-quarter results showing a narrowed loss of 7 cents per share, compared with 16 cents a year ago. Revenue for the period climbed 22% to $219.9 million, slightly outpacing analyst projections of $217 million.

Chief Executive David Morken attributed the firm’s trajectory to the rapid integration of artificial intelligence in enterprise infrastructure. Morken noted that the company is specifically targeting AI-native innovators to secure larger strategic contracts, betting that increased demand for mission-critical communication tools will offset current earnings pressures.