Zoom shares increased during after-hours trading on Monday following the company’s announcement that it anticipates posting stronger-than-anticipated earnings for the remainder of this fiscal year.
In its earnings report for the second quarter, the company, which offers video and audio chat services, increased its outlook for profitability for the 2024 fiscal year. It now anticipates revenue to be slightly below $4.5 billion which represents approximately 2% growth year-over-year.
On a conference call with investors, Zoom’s founder and CEO Eric Yuan also touted the company’s introduction of recent AI features. In terms of artificial intelligence, Yuan stated that the company has an “aggressive roadmap” that is “aimed at empowering our customers to work smarter and serve their customers better”.
Chat hosts can now create meeting summaries using ZoomIQ, a new AI-powered feature that the company added earlier this year.
“All of those generative AI features can make the platform not only more sticky, but also more valuable.” Yuan said on a Monday earnings call after discussing ZoomIQ.
After updating its terms of service to potentially give the company access to user data for the purpose of training AI technology, Zoom (ZM) recently encountered backlash on social media.
In a blog post earlier this month, Zoom’s chief product officer, Smita Hashim, reassured customers that the company would not use their personal information to train AI models.
As the company develops AI solutions, Yuan reiterated that message on Monday, stating that “we strongly believe that technology should advance trust”.
“I’m proud of the approach we are taking. By putting customers’ privacy needs first, Zoom is taking a leadership position in ensuring customers can use our AI features with confidence that their content is protected,” he said.
Source-CNN
