Zoom Shares Jump as CEO Says Company to Develop and Deploy AI Tools
Zoom, the renowned provider of video and audio chat services, witnessed a surge in its stock price during after-hours trading on Monday following the release of its second-quarter earnings report. The company’s optimistic outlook for the rest of the fiscal year drove investor enthusiasm, pushing shares higher.
In its quarterly earnings report, Zoom revealed an upgraded profitability forecast for the 2024 fiscal year. The company now anticipates revenue to approach $4.5 billion, marking a modest year-over-year growth of approximately 2%. The news sparked investor confidence and contributed to the positive market response.
Eric Yuan, Zoom’s CEO and founder, addressed investors during a conference call, highlighting the recent strides the company has made in artificial intelligence (AI) integration. Yuan expressed enthusiasm for Zoom’s AI-driven features, emphasizing the company’s commitment to enabling customers to enhance their work efficiency and customer service through AI technology.
One of the notable AI features Zoom expanded this year is ZoomIQ, which empowers chat hosts to generate AI-powered meeting summaries. Yuan underlined the value of these AI enhancements, stating that they not only increase user engagement but also offer additional utility to the platform.
Earlier this month, Zoom faced criticism on social media over a change in its terms of service, which raised concerns about potential access to user data for AI training purposes. Smita Hashim, Zoom’s Chief Product Officer, reassured customers in a blog post that customer data would not be used to train AI models. Yuan reiterated this commitment, emphasizing the company’s dedication to safeguarding user privacy and data security.
Yuan acknowledged the importance of building trust as Zoom develops AI solutions, reaffirming the company’s priority to protect customer content. He underscored the proactive stance Zoom is taking in the industry, ensuring customers can confidently utilize AI features while having the assurance that their privacy remains intact.
The positive earnings report and the company’s AI advancements have positioned Zoom as a leader in the tech industry, with investors showing confidence in its growth trajectory and commitment to user privacy.
