Zoom (ZM) Reveals AI-Driven Solutions During Zoomtopia 2023
Zoom Video Communications ZM has announced several new product innovations and features at Zoomtopia 2023, its annual event. These innovations are designed to enhance communication, collaboration and productivity for individuals and teams.
It has introduced Zoom Docs, a collaborative workspace with AI capabilities. It will integrate with Zoom and third-party apps, making it easy for teams to create, collaborate, manage projects and stay organized. It will include document features, wikis, and AI-powered functions like content population, generation, summarization and document search. Zoom Docs is expected to be generally available in 2024.
ZM has also unveiled Zoom AI companion, a generative AI digital assistant which aids users by summarizing meeting discussions, chat threads and composing emails in Zoom Mail. It now contains a new Whiteboard capability for generating and categorizing ideas. Zoom AI Companion is available at no additional cost for paid users on eligible accounts.
The company’s acquisition of Workvivo, an employee engagement and communications solution, provides new ways to keep employees informed, engaged and connected in the hybrid work model. Users can access Workvivo directly in the Zoom desktop client.
ZM is enhancing hybrid work experience by suggesting seat locations for key collaborators and launching a Wayfinding feature to help users navigate unfamiliar office spaces. Virtual coworking spaces, called "Huddles", now feature presence indicators and location information. The company is also streamlining pre-meeting process with features in Calendar, Mail, Team Chat and Zoom Scheduler.
Its AI-powered customer experience solutions aim to support customer-facing teams including customer support agents and supervisors. AI Expert Assist provides real-time support, natural language understanding and context-aware actions to streamline contact center workflows. Its Virtual Agent and Zoom Contact Center will integrate with popular Meta digital messaging apps, WhatsApp and Messenger. Event managers can benefit from AI-composed event email invitations and lobby chats.
Zoom Video Communications, Inc. Price and Consensus
Zoom Video Communications, Inc. price-consensus-chart | Zoom Video Communications, Inc. Quote
What Awaits Zoom in the Near Future?
Joining the growing list of companies that offer generative AI tools, Zoom is strategically leveraging AI to increase its user base and enhance user engagement. By harnessing the power of AI, the company aims to attract more users to its platform and enhance overall experience for its existing users.
In the fiscal second quarter, customers contributing more than $100,000 in revenues in the trailing 12 months grew 17.8% to 3,672. These customers accounted for 29% of revenues, up from 26% in the year-ago quarter. This trend is likely to continue in the near term.
Zoom expects third-quarter fiscal 2024 revenues in the range of $1.115-$1.120 billion. Non-GAAP earnings per share are expected to be between $1.07 and $1.09.
The Zacks Consensus Estimate for ZM’s third-quarter fiscal 2024 earnings is pegged at $1.08 per share, unchanged in the past 30 days. The Zacks Consensus Estimate for revenues is pegged at $1.12 billion, indicating year-over-year growth of 1.47%.
In June, The company introduced significant elements of Zoom IQ, an intelligent assistant that enhances collaboration and unleashes individuals' capabilities using generative AI. These features, such as Zoom Meeting summary and Zoom Team Chat compose, are now accessible through complimentary trial periods for eligible customers. By leveraging these tools, teams can enhance productivity, balance workday priorities and collaborate more effectively.
This Zacks Rank #2 (Buy) company has been making efforts to enhance features for users for quite some time now. But what serves as major headwinds to it is the strengthening of the U.S. dollar and macroeconomic conditions. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has gained 0.5% year to date compared with the Zacks Computer & Technology Sector’s growth of 34.4%.
Besides this, ZM also faces stiff competition from Microsoft MSFT, Alphabet GOOGL and RingCentral RNG in the cloud communications segment.
Microsoft’s shares have increased 30.7% year to date. Microsoft Teams now allow users to create a short video clip in chat. The recipient of the video clip can reply with a message or a video clip of their own.
Alphabet have jumped 49.9% year to date. The company has rolled out an update that allows users to schedule and join meetings, add virtual backgrounds, in-meeting chat and more, apart from existing video calling features.
RingCentral’s shares have lost 19% year to date. RNG is riding on a strong product portfolio, which provides UCaaS and CCaaS solutions. This includes RingCentral MVP, RingCentral Video, customer service and support. The adoption of AI-powered cloud communications and business solutions has been strong recently.
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