After the great successes that Zoom was able to achieve during the corona pandemic flattened out, the company is still optimistic. Above all, the Asia-Pacific business and the AI boom are generating enthusiasm.
• Zoom’s success levels off after the pandemic
• Zoom is doubling its technology investments in the Asia-Pacific region
• Cloud-based phone solution and AI initiatives provide optimism
Hard time after the pandemic
During the pandemic, Zoom was one of the big winners as more and more people were forced to work from home. With the end of the corona crisis, however, Zoom’s outstanding success also flattened out. The company posted a loss of approximately $104 million in the fourth quarter of fiscal 2022 year-over-year. Nevertheless, Zoom significantly exceeded market expectations with its earnings guidance for the current quarter. Regardless, the company continues to struggle with the downturn. In February of this year, Zoom announced major job cuts. A total of 15 percent of the employees and thus around 1,300 jobs are to be cut. The reason for this was that the strong hiring offensive launched during the pandemic later turned out to be oversized.
Zoom invests in Asia Pacific
Zoom’s Head of International, Abe Smith, recently told Squawk Box Asia that the company is doubling its tech investments in the Asia-Pacific region to fuel growth. That’s despite the fact that the company has faced headwinds since the end of the coronavirus pandemic as more people return to the office and business travel resumes. There’s “a lot of activity in Asia, across APAC. We committed about two years ago to really picking up the pace and stepping on the gas,” Smith said. As a result, the US software group is investing, for example, in a complete data center in Singapore and in a research and development center in Chennai and Bangalore (India).
Still optimistic
So, despite the difficult circumstances of the past few months, Smith states that the company remains optimistic about the growth of its phone product in the Asia-Pacific region. Zoom’s cloud-based telephone solution – which offers services such as unlimited national calls, SMS messages and call recording – now accounts for a full ten percent of sales. This product has grown by more than 100 percent compared to the previous year and today represents more than five and a half million jobs. “We will deliver limitless human connection… through a variety of products… that allow people to connect and communicate flexibly and in their own way,” said Smith.
In addition, in the course of the AI boom, Zoom is also entering the competition. Zoom’s AI initiatives include an investment in Anthropic, an AI security and research company. “This is a big investment for the company,” said Smith. “This is a partnership and an investment that will help accelerate the way we work in this category.” The company also announced an expansion of Zoom IQ, an AI feature that aggregates chat threads and whiteboard sessions. “AI is who we are…the intelligence in the platform has been there from day one. When you join a Zoom meeting and use something as simple as a virtual background, you experience AI. When you’re in a Meetings want to stop a dog barking by using background noise cancellation, that’s AI,” Smith said.
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