Zoom Video Communications Inc. shares soared Tuesday after the company reported strong quarterly results and raised its annual revenue forecast due to the work-from-home environment fueled by COVID-19.

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Shares of the San Jose, Calif.-based Zoom gained as much as 47%, running the video-communication platform’s market capitalization above $125 billion for the first time. At that level, Zoom was on track to close with the 55th largest market cap among U.S. companies and was bigger than IBM's $110 billion valuation, according to Dow Jones Market Data.

TickerSecurityLastChangeChange %ZMZOOM VIDEO COMMUNICATIONS INC.448.79+123.69+38.05%

The strong gains come after Zoom on Monday evening reported that profit in the three months through June rose to $185.7 million, or an adjusted 92 cents per share – more than double the 45 cents that analysts surveyed by Refinitiv were expecting.

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Revenue also outpaced estimates, rising 355% to $663.5 million as the number of institutional customers spiked 458% to more than 370,000.

“With WFH productivity better than expected and COVID continuing to prevent a return to work, we agree that ZM’s value proposition continues to grow,” wrote Morgan Stanley analyst Meta Marshall.

However, the firm cautioned that at Zoom’s current valuation of about 40 times 2021 revenue, the stock is priced for the majority of users to permanently work or attend school from home.

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Zoom shares were up 378% year-to-date through Monday.

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