Video conferencing company Zoom has pegged its growth plans to AI investments after reporting its first fourth-quarter net loss since 2018.
report result Zoom announced on Monday that it posted a net loss of $104 million for the fourth quarter of its fiscal year 2023, which ended January 31. His online revenue was also down 10% year-on-year to $481.7 million.
This loss was primarily due to stock-based compensation expense. Otherwise, Zoom posted total revenue of $1.1 billion in the fourth quarter, up 4% year over year, and reported total revenue of $4.4 billion in fiscal 2022, up 7% year over year.
In addition, fourth-quarter revenue from enterprise customers was $636.1 million, up 18% year-over-year, and full-year corporate revenue was $2.4 billion, up 24% year-over-year.
Overall, the results were largely positive, but dizzying levels of growth The company experienced during the pandemic and reflects some of the challenges facing the technology sector today.
Earlier this month, Zoom announced that it would: 1,300 jobs cutabout 15% of its employees.
Alluding to this in a call with analysts after the results were released, the company’s CFO Kelly Steckelberg said, “In order to focus our resources on our enterprise customers and be as efficient as possible with our commercial and small business teams. , restructuring is happening,” he said.
In the same call, CEO Eric Yuan described the cuts as a “painful exercise” but said the decision allowed the company to reset to weather the economic environment.
Yuan said there has been some decline in the number of Zoom seats customers buy as organizations around the world continue to look for ways to tighten their budgets. And the company experienced headwinds in terms of deal scrutiny that continued into the fourth quarter, Yuan added.
Despite the slowdown, Yuan seemed optimistic about the company’s direction as it transitions into next fiscal year.
Following recent announcements by Microsoft and Google regarding their investment in Chat GPT “The age of AI and large-scale language models has arrived,” Yuan said on a conference call, saying Zoom hopes its customers will benefit from the technology.
Commenting on the company’s strategy for fiscal year 2024, Yuan said that Zoom will provide “new immersive experiences that improve employee engagement and modern collaboration tools for ideas across locations and modalities.” He said he was trying to “redefine teamwork.”
He also said that by embedding AI into more workflows, Zoom will be able to help users work smarter. We pointed out that features like the summarization tool are just the beginning. .
“All of this comes together as a collaboration platform that connects people to unlock their potential, enable more dynamic and intelligent experiences, and reimagine productivity and work,” said Yuan. .
In February, Microsoft New premium version released Collaboration platform Teams backed by a large language model Chat GPT.
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