As Zoom announces new numbers today, investors and others are looking carefully at how the trend might be changing from the pandemic era, where this videoconferencing company was one of the stand-out gainers in new remote models.
Zoom is estimated to return a 49% increase in revenue with $991 million for this quarter, with EPS of $1.16.
That’s much lower than revenue has gained in the past, for example, with a 191% gain year-over-year for the last quarter, and 2021-2022 increases of 325%.
Interested parties are looking into what Zoom is going to be doing to pivot to the next big thing.
One acquisition is Kites GmbH, a translation company.
“We are continuously looking for new ways to deliver happiness to our users and improve meeting productivity, and MT solutions will be key in enhancing our platform for Zoom customers across the globe,” said Velchamy Sankarlingam, President of Product and Engineering at Zoom, in a January 29 press release. “With our aligned missions to make collaboration frictionless – regardless of language, geographic location, or other barriers – we are confident Kites’ impressive team will fit right in with Zoom.”
Another key part of this strategy is the acquisition of cloud contact center company Five9 for an estimated $14.7 billion.
Meanwhile, Zoom stock is nearly as high as it’s ever been. ZI has spiraled up around 33% since May.
In other words, regardless of the fundamentals, this is a leading tech stock with room to grow. The pandemic may be over, and users may have “Zoom fatigue,” but the platform is still one of the best practical ways to put together meetings that aren’t being done face-to-face. There’s also a certain amount of momentum from becoming a household name, especially in a time of societal pressure.
Keep an eye out as the reports come out to see what Zoom’s takeaway is from this past quarter.
