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Zoom Communications (ZM) Inks Deal To Acquire Solvvy
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Zoom Communications (ZM - Free Report) recently signed a deal to acquire Solvvy, a conversational AI and automation platform for customer support.
With the completion of the Solvvy acquisition, Zoom will be able to offer improved customer service experiences to a global enterprise base. It will also enable the company to capitalize on new opportunities in contact centers and the customer support arena.
In February 2022, Zoom launched Zoom Contact Center, an omnichannel contact center solution optimized for video and integrated into the Zoom experience.
With the acquisition of Solvvy proprietary technology and the introduction of scalable self-service and conversational AI, Zoom Contact Centre’s offerings are likely to broaden.
Zoom Video Communications, Inc. Price and Consensus
Zoom Communications has transformed largely over the last few years, evolving from a meetings company into a multiproduct platform, including video conferencing, events, phone calls and more.
Moreover, the company gained immense traction amid the pandemic with the emergence of remote work and online learning. Zoom’s software provides users with solid scalability, easy deployment, convenience and hassle-free management. This helped the platform gain popularity among users, even amidst intense competition from the likes of Microsoft Teams, Google G Suite, Webex and others.
Zoom has been focusing on eliminating its existing privacy and security loopholes. Zoom also received a variety of third-party certifications and attestations, unveiled product innovations and established programs. These certificates demonstrate the many initiatives undertaken at Zoom that help protect the security and privacy of its users.
The company has been investing massively in research and development. In fourth-quarter fiscal 2022, Zoom reported research and development expenses of $117 million, up 123.4% year over year. In fiscal 2022, Zoom’s research and development expenses reached $363 million, up 121% year over year.
In April, Zoom announced the availability of Zoom Whiteboard, a solution that allows collaboration and creation within the Zoom platform. Zoom Whiteboard further broadens the capabilities of the Zoom platform for the hybrid work model, including unified communications.
Zoom also expects a rise in sales and marketing expenses since it plans to scale its brand awareness to retain its customers and expand its clientele. In the last reported quarter, Zoom’s sales and marketing expenses reached $325.4 million, up 52% year over year.
Zoom further expects its revenues to witness a breakeven or slight year-over-year growth in 2022 as the impact of the COVID-19 pandemic continues to taper. The company will be back to focusing on the growth of its Enterprise business in terms of introducing more new services. In the fourth quarter of 2021, Zoom reported revenues of $1.07 billion, up 21% year over year.
For first-quarter fiscal 2023, Zoom anticipates revenues in the range of $1.07-$1.075 billion.
Zacks Rank and Stocks to Consider
Currently, Zoom holds a Zacks Rank #4 (Sell)
Zoom’s shares have declined 27.9% year to date compared with the Zacks Internet Software industry’s decline of 28.9%. The Computer & Technology sector has tumbled 12.9%.
Avid Technology shares have declined 15% compared with the Zacks Computer – Software industry’s fall of 21% and the Computer & Technology sector’s drop of 14.9% in the year-to-date period.
Ceridian HCM stock has surged 33.5% against the Zacks Internet - Software industry’s decline of 28.7% and the Computer & Technology sector’s fall of 14.9% in the year-to-date period.
Shares of Cisco have returned 1.7% compared with the Zacks Computer - Networking industry’s decrease of 23.5% and the Computer & Technology sector’s fall of 14.9% in the year-to-date period.
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Zoom Communications (ZM) Inks Deal To Acquire Solvvy
Zoom Communications (ZM - Free Report) recently signed a deal to acquire Solvvy, a conversational AI and automation platform for customer support.
With the completion of the Solvvy acquisition, Zoom will be able to offer improved customer service experiences to a global enterprise base. It will also enable the company to capitalize on new opportunities in contact centers and the customer support arena.
In February 2022, Zoom launched Zoom Contact Center, an omnichannel contact center solution optimized for video and integrated into the Zoom experience.
With the acquisition of Solvvy proprietary technology and the introduction of scalable self-service and conversational AI, Zoom Contact Centre’s offerings are likely to broaden.
Zoom Video Communications, Inc. Price and Consensus
Zoom Video Communications, Inc. price-consensus-chart | Zoom Video Communications, Inc. Quote
Business Scale Expansion Efforts to Aid Prospects
Zoom Communications has transformed largely over the last few years, evolving from a meetings company into a multiproduct platform, including video conferencing, events, phone calls and more.
Moreover, the company gained immense traction amid the pandemic with the emergence of remote work and online learning. Zoom’s software provides users with solid scalability, easy deployment, convenience and hassle-free management. This helped the platform gain popularity among users, even amidst intense competition from the likes of Microsoft Teams, Google G Suite, Webex and others.
Zoom has been focusing on eliminating its existing privacy and security loopholes. Zoom also received a variety of third-party certifications and attestations, unveiled product innovations and established programs. These certificates demonstrate the many initiatives undertaken at Zoom that help protect the security and privacy of its users.
The company has been investing massively in research and development. In fourth-quarter fiscal 2022, Zoom reported research and development expenses of $117 million, up 123.4% year over year. In fiscal 2022, Zoom’s research and development expenses reached $363 million, up 121% year over year.
In April, Zoom announced the availability of Zoom Whiteboard, a solution that allows collaboration and creation within the Zoom platform. Zoom Whiteboard further broadens the capabilities of the Zoom platform for the hybrid work model, including unified communications.
Zoom also expects a rise in sales and marketing expenses since it plans to scale its brand awareness to retain its customers and expand its clientele. In the last reported quarter, Zoom’s sales and marketing expenses reached $325.4 million, up 52% year over year.
Zoom further expects its revenues to witness a breakeven or slight year-over-year growth in 2022 as the impact of the COVID-19 pandemic continues to taper. The company will be back to focusing on the growth of its Enterprise business in terms of introducing more new services. In the fourth quarter of 2021, Zoom reported revenues of $1.07 billion, up 21% year over year.
For first-quarter fiscal 2023, Zoom anticipates revenues in the range of $1.07-$1.075 billion.
Zacks Rank and Stocks to Consider
Currently, Zoom holds a Zacks Rank #4 (Sell)
Zoom’s shares have declined 27.9% year to date compared with the Zacks Internet Software industry’s decline of 28.9%. The Computer & Technology sector has tumbled 12.9%.
Some better-ranked stocks in the Zacks Computer & Technology sector are Avid Technology , Ceridian HCM and Cisco Systems (CSCO - Free Report) , each sporting a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Avid Technology shares have declined 15% compared with the Zacks Computer – Software industry’s fall of 21% and the Computer & Technology sector’s drop of 14.9% in the year-to-date period.
Ceridian HCM stock has surged 33.5% against the Zacks Internet - Software industry’s decline of 28.7% and the Computer & Technology sector’s fall of 14.9% in the year-to-date period.
Shares of Cisco have returned 1.7% compared with the Zacks Computer - Networking industry’s decrease of 23.5% and the Computer & Technology sector’s fall of 14.9% in the year-to-date period.