Zoom Video Communications (ZM) -) shares moved higher ahead of the videoconferencing specialist's second quarter earnings slated for after the closing bell.
Zoom has been facing both intense competition from larger rivals such as Microsoft (MSFT) -) and Salesforce (CRM) -) as well as a falloff in post pandemic demand for its work-from-home conferencing solutions.
Analysts expect the company to post an adjusted bottom line of $1.05 per share, about flat with the year-earlier total.
Group revenue is also likely to be little changed from the second quarter of last year, at $1.1 billion, with enterprise sales likely offsetting another decline in online revenue -- a division composed of smaller and medium-sized businesses.
Earlier this spring, Zoom lifted its full-year sales forecast to between $4.47 billion and $4.49 billion, a 2% bump from its prior forecast.
Zoom may also articulate its developing AI strategy but will likely face ongoing privacy concerns related to its use of customer data to train AI models, including its own Zoe chatbot.
"Security and data protection, inaccuracies, copyright, bias and notably the absence of watermarking are issues for all generative AI entrants, including OpenAI, Microsoft, Meta and Google." said Benchmark analyst Matthew Harrigan, who carries a buy rating on Zoom stock with a $95 price target.
Zoom shares at last check were trading 1.6% higher at $67.38, One year ago they were trading just past $100.
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