Zoom Video Communications, Inc ZM stock is trading higher Friday amid reports of the company “doubling down” on its technology investments in the Asia-Pacific region to boost growth.
Zoom’s head of international, Abe Smith, acknowledged on CNBC’s “Squawk Box Asia,” a firm commitment about two years ago to turn on the speed and step on the gas.
Smith said Zoom is “extremely optimistic” about the growth of its phone product in Asia Pacific.
Zoom’s cloud-based phone solution — which offers services like unlimited domestic calls, SMS messaging, and call recording — now makes up 10% of its revenue.
The company aims to deliver a limitless human connection across many products that allow people to connect and communicate flexibly and by choice.
The recent generative AI boom sees big tech firms pumping in soaring investments into products — including Zoom, as it competes with video-conferencing tools like Microsoft Corp’s MSFT Microsoft Teams.
Zoom’s big bet on AI also includes investing in Anthropic, an AI safety and research company, back in May.
It also recently announced its expansion of Zoom IQ, an AI feature that summarizes chat threads and whiteboard sessions.
In May, Zoom reported first-quarter total revenue of $1.11 billion, up 3% year-over-year. The revenue total beat a Street estimate of $1.08 billion.
The company reported first-quarter earnings per share of $1.16, which beat a Street consensus estimate of 99 cents per share.
Price Action: ZM shares traded higher by 4.58% at $67.65 premarket on the last check Friday.
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