Zoom Video Communications, Inc. (ZM Quick QuoteZM - Free Report) announced the launch of a new single-use webinar service that can accommodate up to one million attendees. Alongside its existing monthly and annual webinar plans, Zoom now offers a variety of one-time webinar options for different audience sizes, ranging from 10,000 to 1 million people.

Zoom Webinars stand out for their high-quality audio and video, with no delay, making sure everyone experiences the event in real-time. Unlike other platforms that may have noticeable delays, ZM’s webinars offer instant communication. They can handle events lasting up to 30 hours and include features for up to 1,000 interactive video panelists. The platform is easy to use, letting event organizers set up webinars quickly and attendees enjoy a familiar interface.

For flexibility, Zoom provides various pricing plans, including options for one-time events, monthly or annual subscriptions and more. Event organizers can choose from different plans depending on their needs. They also get access to detailed performance reports to help improve future webinars. Currently, this new single-use webinar service is available only in the United States.

ZM’s New Features to Boost Enterprise Customer Growth

Zoom recently unveiled several new features aimed at enhancing productivity and collaboration. Among the key updates is the introduction of AI Companion capabilities. This includes generative AI for creating virtual backgrounds based on text prompts, improving meeting summaries with optical character recognition and in-meeting chat content, as well as auto-generating titles and descriptions for Zoom Clips.

ZM's new product, Zoom Docs, further integrates AI Companion to streamline document creation and team collaboration. Zoom Docs transforms meeting outcomes into actionable documents and knowledge bases, addressing common issues like repetitive tasks and information overload.

Another significant update is the beta release of Workflow Automation, which is designed to enhance efficiency by automating routine tasks. This feature allows users to set up workflows across Zoom Team Chat and other applications with ease, using a no-code drag-and-drop interface. 

These recent advancements are expected to boost enterprise customers, as well as the company’s top-line growth in the upcoming quarters.

The Zacks Consensus Estimate for ZM’s fiscal 2025 enterprise customers is pegged at 228,310, indicating year-over-year growth of 3.6%. The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $4.62 billion, indicating year-over-year growth of 1.96%.

However, Zoom faces tough competition in the cloud communications market from Microsoft (MSFT Quick QuoteMSFT - Free Report) , Alphabet (GOOGL Quick QuoteGOOGL - Free Report) and Salesforce (CRM Quick QuoteCRM - Free Report) .

Shares of this Zacks Rank #3 (Hold) company have lost 16.8% year to date against the Zacks Computer and Technology sector’s growth of 20.8%. Shares of MSFT, GOOGL and CRM have returned 12.1%, 19.3% and 0.9%, respectively, in the same time frame. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Conclusion

Zoom’s expanding features are a major positive, which bodes well for the long-term growth of the company. However, competition in the cloud communications market remains a concern.

Moreover, demand for ZM’s platform and solutions is expected to remain robust as healthcare experts believe that some form of social distancing will be required to prevent recurrent transmission of the coronavirus until any effective treatment is developed. 

The Zacks Consensus Estimate for ZM’s second-quarter fiscal 2025 earnings per share is pegged at $1.21, which has remained unchanged in the past 60 days. The consensus mark for fiscal 2025 earnings is pegged at $5.05 per share, which has increased a cent in the past 60 days.