Zoom’s third quarter went slightly better than expected. The outlook has also been raised slightly. In addition, the company has renamed itself from Zoom Video Communications to Zoom Communications Inc., a subtle yet meaningful shift.
The earnings per share ended up being $1.38, higher than the $1.31 expected. Total revenue stood at $1.18 billion versus the $1.16 billion the company had forecast. The end result is a 4 percent gain compared to the same quarter in 2023.
This level of steady growth is a continuation of the pattern Zoom has entered since emerging from Covid-19. The forced adoption of remote work tripled Zoom’s market value between 2020 and 2021. But now, Zoom is also forecasting single-digit growth for the coming quarter. This somewhat predictable (yet more positive than predicted) forecast resulted in a 4 percent drop in share price.
From video service to communications service
Zoom, meanwhile, is reimagining itself. Having become the icon of videocalls, the company has been distancing itself from this image for some time. This combination of “curse and blessing,” as Zoom management put it to Techzine, is something the company is struggling with. Hence the name change, which cuts “Video” out of the official title.
Read more: Zoom is more than a video conferencing tool and is eager to show that to the world
During the recent Zoomtopia, Zoom’s broader ambitions were once again revealed. For example, it has now introduced an AI Companion. Links between Zoom and the suites of Microsoft and Google should give this AI assistant the knowledge base required to understand your working day and life. Paid add-ons extend this offering to a companion that also taps into Atlassian, Glean, Workday, Zendesk, ServiceNow, Box, Asana and HubSpot.
Tip: Zoom AI Companion becomes a digital assistant that knows your work (day)