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The move is surprising given how much the company benefitted from remote work. The remote work revolution is officially dead. Zoom, one of the main enablers and beneficiaries of remote work, just asked its employees to head back to the office. Those who live within 50 miles of a Zoom office must now work there at least two days a week, the company confirmed. Many companies have started to require office work this year, but Zoom's change of heart is surprising given the role its technology plays in remote work.
Persons: Zoom, they'd, We'll, Ashley Stewart
watch nowZoom is "doubling down" on its technical investments in the Asia-Pacific region as it seeks to strengthen growth, said the video communications company on Friday. We made a strong commitment about two years ago to really turn on the speed and step on the gas," Abe Smith, Zoom's head of international, told "Squawk Box Asia." watch nowHowever, Smith said Zoom is "extremely optimistic" about the growth of its phone product in Asia Pacific. Zoom's A.I. Zoom's big bet on AI also includes an investment in Anthropic, an AI safety and research company, back in May.
Persons: Abe Smith, Zoom's, Smith Organizations: Microsoft Locations: Asia, Pacific, Singapore, India, Chennai, Bangalore, Asia Pacific, Anthropic
Jim Cramer's guide to investing: Never buy all at once
  + stars: | 2023-06-29 | by ( Julie Coleman | ) www.cnbc.com   time to read: +2 min
With that strategy, you're better protected if the price goes lower or if something should go wrong at the company. "When you buy all at once, you're basically declaring that the stock absolutely won't go any lower," Cramer said. For example, Zoom , a Wall Street favorite during the Covid-19 pandemic, plunged from a $588 high in October 2020 to the mid-seventies less than two years later. But Cramer said the distinction between a damaged stock and a damaged company can be difficult to discern, and at the end of the day, "you never really know." "Never buy a position all at once because what you think is merely a damaged stock might turn out to be a damaged company.
Persons: CNBC's Jim Cramer, Cramer, Cisco — Organizations: CNBC's Charitable Trust, Microsoft, Google, Cisco Locations: Washington
Smita Hashim is the chief product officer at Zoom who has also held leadership positions at Microsoft and Google. I'm so glad I did — she gives me so much joy and I'm so glad I had her. Throughout my career, I've had a lot of diverse work experiences. I'm a huge believer in flexible work. I feel fortunate and grateful to be at Zoom and at the forefront of building products that are enabling flexible work for the world at large.
Persons: Smita Hashim, Hashim, it's, , It's, There've, I've, I'm, flexibly, Jennifer Eum Organizations: Microsoft, Google, Service
May 16 (Reuters) - Zoom Video Communications Inc (ZM.O) said on Tuesday it has invested an undisclosed sum in Anthropic and will integrate the artificial intelligence start-up's technology into its video-conferencing platform. The move marks the latest effort by Zoom to spruce up its offerings with AI as it competes against Microsoft Teams, the dominant video-conferencing tool for enterprises. Under the collaboration, Anthropic's Claude - a large language model that competes directly with offerings from Microsoft-backed OpenAI - will be integrated with Zoom's platform. In March, Zoom had announced a partnership with OpenAI to add AI-driven capabilities such as conversation summaries and message drafts to its Zoom IQ assistant. Reporting by Akshita Toshniwal in Bengaluru and Krystal Hu; Editing by Shailesh KuberOur Standards: The Thomson Reuters Trust Principles.
French businessman Stéphane Bancel made $393 million in stock options in 2022, according to securities filings. Bancel, 50, also owns stocks valued around at least $2.8 billion, and received a 50% raise from 2021 to 2022. Moderna's chief executive officer Stéphane Bancel raked in about $393 million in 2022 thanks to stock options, and then received a raise on top of it — compensation that's giving some analysts pause. In addition to exercising his stock options in 2022, 50-year-old Bancel earned a $1.5 million salary — a 50% jump from 2021, according to securities filings from March. Meanwhile, Amazon CEO Andy Jassy's pay dropped from $212 million in 2021 to $1.3 million in 2022 due to receiving any stock awards.
Zoom has fired its president, Greg Tomb, just 10 months after he joined. Before his stint at Zoom, Tomb worked as Google's vice president of sales. Zoom said in a filing with the Securities and Exchange Commission (SEC) that Tomb's termination was effective as of Friday. Tomb's LinkedIn profile shows he joined Zoom as president in June 2022. Tomb's termination comes after Zoom announced in early February it was laying off about 1,300 employees — 15% of its workforce.
Hims & Hers Health — Shares of the telehealth stock soared by 17% after the company reported quarterly results that surpassed estimates. However, Target's full-year earnings guidance came in below expectations. Zoom's full-year revenue guidance came in lighter than expected, but topped estimates on its earnings guidance for 2023. Norwegian Cruise Line Holdings — The cruise company fell 12% after reporting a wider-than-expected loss for the fourth quarter. Analysts surveyed by Refinitiv had forecast an 85 cents per share loss on revenue of $1.5 billion.
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. 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. 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. The company, however, expects 2024 revenue between $4.44 billion and $4.46 billion, below average Street estimate of $4.60 billion.
Zoom Video has lost the momentum it had during the work-from-home boom, and a strong earnings report did little to change that, according to traders on CNBC's " Fast Money ." The company on Monday reported adjusted earnings of $1.22 per share and $1.12 billion in revenue for the fourth quarter. The stock soared above $500 per share in 2020 as the use of video conferencing soared, but Zoom has since given back all of those gains. Guy Adami of Private Advisor Group called Zoom a "fine company" but cautioned that its use of stock-based compensation could hurt shareholders. That metric, which Zoom Video excludes from its adjusted earnings number, was a roughly $520 million expense during the fourth quarter, and can cause dilution for shareholders.
Zoom shares climbed almost 7% in extended trading on Monday after the video chat company reported fiscal fourth-quarter results that exceeded analysts' estimates and offered optimistic earnings guidance for the year. Here's how the company did:Earnings: $1.22 per share, adjusted, vs. 81 cents as expected by analysts, according to Refinitiv. $1.22 per share, adjusted, vs. 81 cents as expected by analysts, according to Refinitiv. Zoom sees between $4.435 billion to $4.455 billion in revenue, implying 1.1% growth, while analysts were expecting sales of $4.6 billion. During the fiscal fourth quarter, Zoom said it would introduce email and calendar services, along with a virtual agent chatbot for handling customer service inquiries.
Zoom CEO Eric Yuan is taking a pay cut of 98%, and will earn just $10,000 in salary this year. This would bring Yuan's salary down to $10,000, Zoom wrote in a regulatory filing. Yuan wrote in the email that other members of the executive leadership team would reduce their base salaries by 20% in the coming year and forfeit their corporate bonuses. "Within 24 months, Zoom grew 3x in size to manage this demand while enabling continued innovation," Yuan wrote. Zoom said in its filing that the layoffs and resultant restructuring would cost it between $50 million and $68 million.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBrian Sullivan's RBI: Has Zoom reached the end of its pandemic boom? Brian Sullivan's daily RBI segment dives into the outlook for Zoom's stock.
Zoom to shed about 1,300 jobs as pandemic-fueled demand slows
  + stars: | 2023-02-07 | by ( ) www.reuters.com   time to read: +2 min
Feb 7 (Reuters) - Zoom Video Communications (ZM.O) said on Tuesday it would cut 15% of its workforce, or about 1,300 jobs, and trim base pay for its executive leadership as pandemic-fueled demand for the company's video conferencing services slows. Announcing the layoffs, Chief Executive Eric Yuan also said that he will take a salary cut of 98% for the coming fiscal year, foregoing his fiscal 2023 corporate bonus. Zoom had bumped up hiring during the pandemic to meet surging demand, but now joins U.S. companies is reining in costs to brace for a potential recession. The video conferencing software maker also said that its executive leadership team will reduce their base salary by 20% in the same period. Departing employees will receive 16 weeks of salary, healthcare coverage and annual bonus for the year, Yuan added.
With a stock price down 45% in the last year, though, it may soon find itself on the other side of the table. But it has $732 million in cash on hand, with zero debt, and analysts are projecting 16% revenue growth. This year, though, Varonis has come back to earth — its stock price has sunk over 57% in the last 12 months. However, with strong projected 2023 revenue growth of 18.6%, Zuora remains a strong target for PE firms. Its stock price has been hammered, going down about 40% this year and making it the subject of mergers-and-acquisitions chatter.
With a stock price down 45% in the last year, though, it may soon find itself on the other side of the table. But it has $732 million in cash on hand, with zero debt, and analysts are projecting 16% revenue growth. This year, though, Varonis has come back to earth — its stock price has sunk over 57% in the last 12 months. However, with strong projected 2023 revenue growth of 18.6%, Zuora remains a strong target for PE firms. Its stock price has been hammered, going down about 40% this year and making it the subject of mergers-and-acquisitions chatter.
As tech stock prices plunge, firms are granting new stocks to staff to keep compensation high. But as stock values tumble in the second half of 2022, investors are looking at the increase in stock-based compensation (SBC) as an issue. And tech companies have been issuing a lot of shares to not only attract new employees but hang on to their existing ones. Peloton granted more than 4 million stock options and 1.7 million RSUs in its fiscal year that ended in June 2021. "The drop in the stock price makes the expense, for lack of a better way to phrase it, a lot more expensive," he added.
Abercrombie & Fitch – Shares of the retail stock jumped 19% after the apparel retailer beat Wall Street's revenue forecasts for the third quarter and posted unexpected quarterly profit. Deutsche Bank reiterated the stock as buy and said it doesn't see any meaningful changes coming to its direct-to-consumer strategy. Best Buy – Best Buy's stock surged 11% after the consumer electronics retailer beat Wall Street's estimates and maintained its outlook for the holiday period. Demand remains below its pandemic heights, but Best Buy indicated its faring well even as inflation weighs on consumers' pockets. The stock slipped even after the company beat top and bottom line estimates for its latest quarter and better-than-expected comparable store sales.
Zoom shares slumped more than 7% in extended trading on Monday after the video-chat company issued weaker-than-expected revenue guidance for its full fiscal year. Here's how the company did:Earnings: $1.07 per share, adjusted, vs. 84 cents per share as expected by analysts, according to Refinitiv. Revenue: $1.10 billion, vs. $1.10 billion as expected by analysts, according to Refinitiv. The company is seeing "heightened deal scrutiny for new business," CEO Eric Yuan said during the earnings call. Zoom lowered revenue guidance, mainly because of the strengthening U.S. dollar.
Its problems put a spotlight on other pandemic hot-shots like Zoom Video Communications (ZM.O), Nautilus Inc (NLS.N), DocuSign Inc (DOCU.O) and DoorDash Inc (DASH.N). Register now for FREE unlimited access to Reuters.com RegisterGrowth investors pushed Peloton stock to a $171.09 record in early 2021. Others bought exercize gear from Nautilus during the pandemic, sending its stock up to $31.30 in early 2021. So, while people might still be using the Peloton, not enough people are buying the Peloton," said Forrest. While one possible outcome for pandemic favorites with slowing growth could be a buyout by a larger company, Schleif is wary of making this bet.
Performance reviews are around the corner, but is it harder to evaluate fully remote workers? Managers are tasked with measuring the productivity of in-person, hybrid, and remote workers. There are differing views on whether remote workers should be concerned with how their performance is measured. Focus on performance metricsYolanda Seals-Coffield, the chief people officer at PricewaterhouseCoopers, says remote workers have nothing to fear. Maintain professional decorumWorking from home can create a certain informality among teams, but Pyrzenski says remote workers shouldn't get too comfortable.
Persons: Chelsea Pyrzenski, Yolanda Seals, Pyrzenski, Celia Balson, Robert Kelley, Kelley, Slack Organizations: PricewaterhouseCoopers, Google, Carnegie Mellon University's Tepper School of Business
Oldham brought in a new chief diversity officer who helped reshape the company's equity efforts. Over the past year, Zoom added new leadership in cybersecurity, engineering and product, and a chief diversity officer. These workers were tasked with handling the initial bursts of demand, as well as a sharp shift to remote work. YouTubeFor newer employees, Oldham put a heavy emphasis on their digital onboarding program. Zoom announced the hiring of chief diversity officer Damien Hooper-Campbell in late May 2020.
TVSquared CEO Calum Smeaton has centered his leadership around transparency, and it's paid off. It's crucial to communicate often and maintain transparency even as a company grows, Smeaton says. Calum Smeaton, founder and CEO of UK-based adtech company TVSquared, is one of many leaders who has decided to squarely center their paradigm on transparency. "If you're not transparent, that's where you create a breeding ground for insecurity." "Transparency is really easy when you're 10 or 15 people all in the same office," Smeaton added.
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