In an effort to boost growth, Zoom is “doubling down” on its technical investments in the Asia-Pacific region, the video communications company announced on Friday (July 7, 2023).
There’s “lots of activity happening in Asia, across all of APAC. We made a strong commitment about two years ago to really turn on the speed and step on the gas,” Abe Smith, Zoom’s head of international, told “Squawk Box Asia.”
“Whether it’s here in Singapore, where we have a full data center … or in India, an effort forward with a R&D center in both Chennai and Bangalore.”
Despite challenges the industry has been facing in the post-pandemic environment as more people return to the office and business trips pick back up, this is the case.
Shares of Zoom fell about 45% in the past year.
While Zoom’s revenue increased by 4% year-on-year in the fourth quarter ended Jan. 31, it is a far cry from the quadrupling of revenue that it saw during the pandemic.
If you’re experiencing a Zoom meeting and use something as simple as a virtual background, you’re experiencing AI. If at a meeting, you want to suppress that barking dog, using noise suppression in the background, that’s AI.
Abe Smith
In February, the company announced plans to cut about 1,300 workers, or 15% of its workforce. It cited the “uncertainty of the global economy” as well as “its effect on our customers” as reasons behind the job cuts.
However, 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, he added.
“That product grew over 100% year over year, it represents more than five and a half million seats today,” said Smith.
“We’re going to deliver a limitless human connection … across a myriad of products … that allow people to connect and communicate with flexibility and by choice.”
Zoom’s A.I. push
Big tech companies are investing heavily in technologies like Zoom as it competes with video conferencing platforms like Microsoft Teams due to the recent generative AI surge.
Zoom’s big bet on AI also includes an investment in Anthropic, an AI safety and research company, back in May.
“It’s a huge investment for the company,” said Smith. “That’s a partnership and investment that will help accelerate the way that we work in this category.”
The company also recently announced its expansion of Zoom IQ, an AI feature that summarizes chat threads and whiteboard sessions.
“AI is who we are … the intelligence in the platform has always existed from day one,” Smith added.
“If you’re experiencing a Zoom meeting and use something as simple as a virtual background, you’re experiencing AI. If at a meeting, you want to suppress that barking dog, using noise suppression in the background, that’s AI.”
