What's going on?

Zoom charmed investors this week with expectation-beating quarterly results.

What does this mean?

The Covid era was a nightmare for most of us, but for Zoom it was the goose that laid the golden egg. And while the firm�s had to navigate some choppy waters since then, it’s adapting well, slimming both its staff and its spending. The company’s also been adding non-video services to its lineup � like contact center features and so-called �internet phone� � in a bid to keep big clients happy. Looks like it’s working: Zoom�s business customer count was up 12% last quarter and the number of firms paying over $100,000 grew by 27%, which helped push revenue and profit past expectations. What�s more, Zoom�s bright profit outlook and talk of upcoming artificial intelligence (AI) products � like transcription, translation, and sales intelligence tools � had investors beaming, and they sent shares up 8%.

Why should I care?

Zooming in: Playing catch up.
Hitching a ride on the AI express isn’t really a forward-looking move these days: it’s almost an essential one. Analysts predict that AI will be the biggest driver of near-term growth in the tech industry � a bet that makes sense with the economy looking so pale-faced. And given that Microsoft’s already jumped on board, working ChatGPT into its Teams Premium package, Zoom needs to act fast � or risk eating competitors� dust.

The bigger picture: Home free.
It seemed like the end was nigh for Zoom when the world stepped out of quarantine � but these results are another reminder that the firm�s got life in it yet. After all, cost-cutting companies and workers alike favor hybrid workplaces, meaning commercial property owners are the real losers: US office vacancies are predicted to hit a record 1.1 billion square feet by 2030.