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Zoom expands enterprise offerings to boost security and compliance

Published 24-09-2024, 06:36 pm
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SAN JOSE, Calif. - Zoom Video Communications , Inc. (NASDAQ:ZM) today unveiled a series of new features and products aimed at enhancing its advanced enterprise offerings. These additions are designed to assist organizations in addressing compliance, security, and operational challenges.

The company introduced Zoom Compliance Manager Plus, a tool that helps enterprises manage regulatory obligations and mitigate communication compliance risks. This solution, which was initially launched in March, now includes advanced features such as risk detection and data loss protection.

Zoom has also launched Meeting Survivability, which provides network redundancy to ensure continuous service during internet disruptions. This functionality relies on Zoom Node to maintain smooth meeting operations via a failover to local servers.

To optimize internet bandwidth usage, Zoom Mesh for Meetings has been extended to Zoom Meetings, allowing companies to save on internet bandwidth costs by up to 60 percent. This feature was previously available for Zoom Webinars and Zoom Events.

Additionally, the company announced the upcoming availability of Zoom Customer Managed Key (CMK) Hybrid for Zoom Workplace, starting with support for Zoom Team Chat in Q4 2024. This enhancement will give customers more control over the encryption keys used to protect their data.

These new offerings are part of Zoom's comprehensive portfolio designed to meet the needs of large organizations and regulated industries. The portfolio includes tools for communications compliance, data residency, policy management, security, analytics, and network optimization.

Zoom's advanced enterprise offerings are available with Zoom Workplace Enterprise licenses, with some features offered as paid add-ons. For more information, interested parties can visit Zoom's advanced enterprise website or attend technical sessions at Zoomtopia 2024.

The announcement comes in response to the growing need for businesses to manage compliance and security risks, as highlighted by the more than $549 million in non-compliance penalties issued globally in 2023 and the impact of security breaches on over 353 million individuals.

Zoom's mission remains focused on providing a platform for human connection and collaboration, with a suite of products that includes Zoom Workplace and Zoom Business Services. The company, founded in 2011, continues to innovate and expand its offerings to meet the evolving needs of enterprise customers.

This news is based on a press release statement from Zoom Video Communications, Inc.


In other recent news, Zoom Video Communications has formed a strategic partnership with Mitel to offer a hybrid cloud solution, aiming to meet the increasing demand for flexible unified communications. This partnership integrates Zoom's advanced features with Mitel's established platform, allowing access to Zoom Workplace and Zoom AI Companion without additional plugins. The collaboration is set to become generally available in the first half of 2025.

In financial developments, Zoom's Q2 2025 earnings and revenue exceeded expectations, with non-GAAP income from operations reaching $456 million and total revenue coming in at $1.16 billion. The company revised its full-year revenue outlook to between $4.63 billion and $4.64 billion, with non-GAAP earnings per share expected to be $5.29 to $5.32.

Analyst firms Citi, Deutsche Bank (ETR:DBKGn), and Goldman Sachs (NYSE:GS) maintained a neutral rating on Zoom, adjusting their price targets in response to these results. Zoom also announced the appointment of Mike Fenger, Apple (NASDAQ:AAPL)'s Vice President, to its Board of Directors, expecting his extensive experience to contribute to Zoom's strategic direction.

In addition, Zoom's AI Companion, part of the Zoom for Government platform, received authorization from The Federal Risk and Authorization Management Program (FedRAMP) Joint Authorization Board (JAB) as a moderate system, allowing federal agencies, state and local governments, and certain private sector organizations to utilize a secure AI service within their paid Zoom accounts. These are recent developments at Zoom.


InvestingPro Insights


Zoom Video Communications, Inc. (NASDAQ:ZM) is enhancing its enterprise offerings with a suite of new products and features, positioning itself as a key player in the market for organizations looking to address compliance and security challenges. As Zoom continues to innovate, several metrics and tips from InvestingPro provide a deeper look into the company's financial health and market performance.

InvestingPro Data:


  • Zoom's market capitalization stands at a robust $21.17 billion, reflecting investor confidence in its business model.

  • The company boasts a gross profit margin of 75.89% over the last twelve months as of Q1 2023, highlighting its ability to maintain profitability in a competitive tech landscape.

  • With a Price/Earnings (P/E) ratio of 24.05, Zoom trades at a valuation that investors might find attractive given its growth prospects and market position.

InvestingPro Tips:


  • Zoom holds more cash than debt on its balance sheet, suggesting a strong financial position that could support further growth and innovation in its enterprise solutions.

  • In addition, 28 analysts have revised their earnings upwards for the upcoming period, indicating a positive outlook on Zoom's financial performance and its ability to capitalize on market opportunities.

Investors and potential stakeholders interested in a more comprehensive analysis can find additional insights on Zoom, with a total of 10 InvestingPro Tips available at https://www.investing.com/pro/ZM. These tips provide valuable information that can help in making informed decisions about the company's stock and its future in the enterprise communications market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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