news/GOOGL/2023.02.27/Zoom jumps on AI bandwagon, forecasts upbeat 2024 profit targets.txt

Feb 27 (Reuters) - Zoom Video Communications Inc
said on Monday it will integrate more artificial intelligence
into its products and forecast annual profit above Wall Street
estimates, sending the company's shares up 8% in extended
trading.Analysts predict the AI tech will be a major driver for
future growth for the tech industry, which has been grappling
with slowing demand amid recessionary fears.The AI race picked up pace after Microsoft-backed
OpenAI's ChatGPT last year prompted heavyweights from Alphabet
Inc to China's Baidu Inc to announce their
own offerings."I like that Zoom is proactively talking about these
opportunities today and I honestly believe it's necessary,
especially given Microsoft is already including ChatGPT as part
of Teams Premium," said RBC analyst Rishi Jaluria.San Jose, California-based Zoom forecast fiscal 2024 profit
between $4.11 and $4.18 per share, compared with analysts'
average estimate of $3.66 per share, according to Refinitiv
data."The age of AI and large language models has arrived," said
Chief Executive Eric Yuan during a call with analysts, adding
that AI can "truly help" the company.Zoom is also benefiting from steady demand for its
video-conferencing service from the ongoing shift to hybrid work
models and cost cuts. Earlier this month, it announced an about
15% reduction in its workforce.On an adjusted basis, Zoom earned $1.22 per share for the
fourth quarter ended Jan. 31, compared with estimates of 81
cents per share.Revenue grew 4% to $1.12 billion, above analysts' average
expectation of $1.10 billion.Finance chief Kelly Steckelberg said the growth was
primarily driven by strength in Zoom's enterprise business.The company, however, expects 2024 revenue between $4.44
billion and $4.46 billion, below average Street estimate of
$4.60 billion."The revenue outlook is softer than initially expected,
partly due to macro pressures and especially given declining
online business," Jaluria said.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Krishna
Chandra Eluri and Shinjini Ganguli)