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HomeAI News & Updates“Zoom Q3 FY '24 Earnings Release”: Breaking Records and AI

“Zoom Q3 FY ’24 Earnings Release”: Breaking Records and AI

Zoom Video Communications (NASDAQ: ZM) reported financial results for the “Third Quarter of Fiscal Year 2024 on Monday. It was reported through a webiner that Zoom Video Communications (ZM.O) increased its revenue and profit predictions in response to rising demand for its products driven by the rise of the hybrid workforce and the incorporation of artificial intelligence technology.

ZOOM

Some Key Points from The Webiner:
• “Over 220,000 users have enabled the Zoom AI Companion, which includes capabilities such as meeting summaries, with 2.8 million meeting summaries written in less than three months.”
• “Dropbox (NASDAQ:DBX), Amynta Group, and Virgin Group have all embraced various Zoom solutions.”
• “Zoom Phone has roughly 7 million paying seats.”
• “Non-GAAP operating income is estimated to be $1.74 billion to $1.745 billion in fiscal year ’24, with an operating margin of around 39%.”
• “AI elements such as the AI Companion, Zoom Phone, Zoom Contact Center, and Zoom Virtual Agent will help to speed up the enterprise expansion metric.”
• “The company is enthusiastic about Zoom Contact Center, praising its modern architecture, scalability, and AI capabilities.”
• According to CEO Eric Yuan, “the cost impact of AI innovation is reasonable and the quality is good.”
• “Workvivo, an operating unit that has shown significant acceptance and momentum, has set accelerated bookings targets.”
Platforms such as Zoom, Microsoft’s (MSFT.O) Teams, and Cisco’s (CSCO.O) Webex gained household names during the COVID lockdowns and have experienced resilient demand as many firms transitioned to hybrid work models. Zoom now forecasts annual adjusted profit per share to be between $4.93 and $4.95, instead of $4.63 to $4.67 before. The company raised its full-year revenue projection to between $4.506 billion and $4.511 billion instead of $4.485 billion to $4.495 billion before.
“We bolstered Zoom’s all-in-one intelligent collaboration platform with advanced new capabilities like Zoom AI Companion and continued to evolve our customer and employee engagement solutions,” Eric Yuan, the company’s chief executive officer, stated. Zoom’s AI Companion, which debuted in the third quarter, gives paying users access to services such as meeting summaries and catch-ups, as well as email and chat-created suggestions. As of Monday, almost 220,000 accounts have activated it.
Zoom’s quarterly free cash flow increased 66.2% to $453.2 million, and the business forecasts $1.34 billion to $1.35 billion in revenue for the whole year. “Cash flow was the highlight, but also encouraged by traction with Phone and Contact Center… gives us greater confidence that we can see growth re-accelerate in the near term,” said Rishi Jaluria, an analyst at RBC. As of the conclusion of the third quarter, the Phone segment had approximately 7 million paying seats, while the Contact Center had approximately 700 customers.
According to LSEG data, Zoom’s current-quarter revenue is likely to range between $1.125 billion and $1.130 billion. Revenue increased by 3.2% to $1.14 billion in the third quarter, slightly exceeding expectations. It has earned $1.29 per share on an adjusted basis, exceeding forecasts of $1.09.
If you want to read Full Transcript, you can check this article from Investing.com

Editorial Staff
Editorial Staff
Editorial Staff at AI Surge is a dedicated team of experts led by Paul Robins, boasting a combined experience of over 7 years in Computer Science, AI, emerging technologies, and online publishing. Our commitment is to bring you authoritative insights into the forefront of artificial intelligence.
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