Zoom Reports Earnings Growth and Rebrands to Reflect AI Focus

The company posted a 3.6% revenue increase and announced its transition to 'Zoom Communications' to emphasize its AI-driven evolution.

Zoom reported $1.18 billion in third-quarter revenue, a 3.6% increase from the same period last year, driven by a 5.8% growth in enterprise customer revenue.
Net income rose to $207.1 million, up from $141.2 million a year earlier, supported by higher investment yields and favorable currency exchange rates.
The company rebranded from 'Zoom Video Communications' to 'Zoom Communications' to reflect its expanded focus on AI and hybrid work solutions.
New AI-driven tools include AI Companion 2.0, which enhances meeting summaries and task assistance, and Zoom Docs, which enables real-time document collaboration during meetings.
Despite beating earnings expectations, shares fell over 4% due to concerns about slowing growth and stiff competition from rivals like Microsoft Teams and Cisco Webex.