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Zoom (ZM) Launches Zoom Apps SDK, Expands its Portfolio

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Zoom Video Communication (ZM - Free Report) expanded its developer platform with the Zoom Apps software development kit (SDK) launch.

The Zoom Apps SDK provides app developers with the resources and support infrastructure they need to build Zoom Apps within the Zoom Client.

Zoom Apps SDK helps developers reach Zoom customers easily via Zoom Marketplace, where they can discover, choose and install new apps to add to the Zoom client.

The JavaScript SDK provides users access to client features such as setting the background in a virtual meeting along with the app context for interaction. This is obtained by using identifiers for the user and meeting.

Zoom’s constant efforts to evolve its business, scale workflows and meet customer expectations lead to an increased need to develop innovative app capabilities and features. The new launch by Zoom offers developers new ways to incorporate video communications into the apps, thereby expanding its Developer Platform and transforming workflows.

 

Efforts To Scale Its Business To Benefit Zoom

The company gained immense traction amid the pandemic. It went from being a modest player to suddenly being everyone’s platform of choice during the lockdown. Easy deployment and hassle-free management of Zoom’s software made it more appealing to the masses.

But with the world returning to normalcy, the need for Zoom has reduced considerably. The stock has also been affected by macroeconomic factors like the Russia-Ukraine War and the strengthening of the dollar.

This Zacks Rank #3 (Hold) company’s shares have plunged 38.1% year to date compared with the Zacks Internet Software industry’s decline of 53.1%. Meanwhile, the Computer & Technology sector has tumbled 31.9%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

However, Zoom has been developing its platform to ensure it does not fall behind.

The company has been investing aggressively to build new products to enhance the platform further and cater to the customers’ evolving needs. In first-quarter fiscal 2023, research and development (R&D) expenses increased 121% year over year to approximately $144.3 million.

Zoom’s recent Solvvy acquisition will help it offer improved customer service experiences to a global enterprise base, helping it capitalize on new opportunities in contact centers and customer support.

The launch of Zoom Events and Zoom Whiteboard should help retain users beyond videoconferencing.

Zoom Still Holds Appeal Despite Stiff Competition

However, the video conferencing market is not all gone. Per a Grand View Research Report, the global video conferencing market is expected to grow at a CAGR of 12.5%, reaching $ 19.73 billion by 2023.

These trends bode well for Zoom but bring in stiff competition from other companies like Microsoft (MSFT - Free Report) Teams, Cisco Systems (CSCO - Free Report) Webex and Alphabet’s (GOOGL - Free Report) Google Workspace.

To date, Microsoft Teams’ auto-suggest feature remains top-notch. The feature aims to improve search across chats, files, people and other content stored or shared in the app.

Earlier this month, Cisco introduced devices for hybrid work like the Webex Room Bar and Cisco Video Phone 8875. The Webex Room Bar can turn small workspaces into a hub to engage with co-workers, while the Cisco Video Phone 8875 lets Webex users conduct phone calls and video meetings.

Recently Alphabet’s Google Meet introduced a picture-in-picture (PiP) feature along with a capability to pin multiple video feeds to update the user experience in Chrome. The company started rolling out the newly introduced capabilities to customers using Google Workspace, legacy G Suite Basic and Business, and those with personal Google Accounts.