Monday’s after-hours trading saw a surge in Zoom’s stock price after the company announced that it anticipates stronger-than-anticipated earnings for the remainder of this fiscal year.
In its second quarter earnings report, the company, which provides video and audio chat services, increased its outlook for profitability for the 2024 fiscal year. It currently anticipates revenues of just under $4.5 billion. This represents approximately 2% annual growth.
On a conference call with investors, Zoom’s founder and chief executive officer, Eric Yuan, also touted the company’s recent rollout of AI features. Yuan stated that the company’s “aggressive roadmap” for artificial intelligence is intended to “aimed at empowering our customers to work smarter and serve their customers better.”
ZoomIQ, a recent AI-powered feature that the company introduced earlier this year, enables chat hosts to generate AI-powered meeting summaries.
During a Monday earnings call, Yuan discussed ZoomIQ and stated, “All of those generative AI features can make the platform not only more sticky, but also more valuable.”
Zoom (ZM) recently encountered controversy on social media after amending its terms of service to potentially grant the company access to user data for AI training. Smita Hashim, Zoom’s chief product officer, assured customers in a blog post earlier this month that the company would not use customer data to train AI models.
Yuan reiterated this message on Monday, stating that as the company develops AI-based solutions, “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.