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Zoom (ZM) Buys Liminal Assets, Improves Virtual Event Abilities

Zoom (ZM) acquires the Liminal assets to add professional broadcasting tools to its portfolio for larger events.

This story originally appeared on Zacks

Zoom Video Communications ZM recently announced the acquisition of assets from Liminal — a start-up offering an event production solution.

The acquisition will help Zoom create higher-quality event productions than its average Zoom meetings.

During the pandemic, Liminal focused on building better solutions for Zoom to bridge the gap between a virtual meeting and an in-person event. It concentrated on enhancing Zoom’s software development kit and developed apps like ZoomISO and ZoomOSC.

ZoomISO generates video outputs of the participants in a Zoom meeting, which can be exported to media servers or other production formats, including high definition.

ZoomOSC helps users effortlessly send a command from a third-party application or software to Zoom.

The acquisition of these assets will help Zoom to prepare for the post-pandemic era, as the demand for solutions supporting hybrid work environment is expected to increase.

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Acquisitions and Partnerships Expand Portfolio

Acquisitions and strategic partnerships have been key catalysts for Zoom.

Zoom announced the acquisition of Karlsruhe Information Technology Solutions - Kites GmbH (Kites) in June 2021. Kites is a Germany-based start-up, which focuses on developing real-time Machine Translation (MT) solutions.

The MT solutions from the acquisition, which will provide multi-language translation capabilities in the Zoom platform, are expected to improve meeting productivity and efficiency for Zoom users.

Zoom also collaborated with VMWare VMW to enable a more secure and improved collaboration experience for hybrid-work environments.

The partnership allows interoperability between the Zoom collaboration platform and VMWare’s Anywhere Workspace. This tie-up will improve utility, application, security and network performance.

Zoom and VMWare will create more resilient organizations by helping them improve user experience, security and visibility.

Investments in R&D to Drive Top-Line Growth

Zoom gained excellent traction with the emergence of remote work and online learning during the pandemic. Easy deployment, convenience, hassle-free management and solid scalability made Zoom’s software popular among users.

The company has been working relentlessly to eliminate the privacy and security loopholes and launched more features and solutions to expand its clientele.

The company is investing massively in research and development. In third-quarter fiscal 2022, Zoom reported research and development expenses of $96.7 million, up 131.3% year over year.

Zoom also announced a new $100-million venture fund — Zoom Apps Fund — to usher in innovation in the Zoom Apps ecosystem. The Zoom Apps Fund will invest in developer partners with early market traction and viable products, enhancing Zoom’s user experience and improving productivity.

Earlier this year, Zoom announced the launch of Zoom Events — an all-in-one platform —  which can produce interactive and engaging virtual experiences. This comprehensive solution enables event organizers to produce ticketed live events for an audience of any size.

Zacks Rank and Stocks to Consider

Currently, Zoom holds a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Computer & Technology are Arrow Electronics ARW and Advanced Micro Devices AMD, both carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arrow’s Zacks Consensus Estimate for fourth-quarter fiscal 2021 earnings has been raised to $4.42 per share, up 14.8% in the past 60 days. For fiscal 2021, earnings estimates have moved north by 8.1% to $14.6 per share in the past 60 days.

Arrow beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 18.6%. Shares of ARW have appreciated 38% year to date.

The Zacks Consensus Estimate for Advanced Micro Devices’ fourth-quarter 2021 earnings has been revised up by 10.3% to 75 cents per share in the past 60 days. For 2021, earnings estimates moved north by 0.38% to $2.65 per share in the last seven days.

Advanced Micro Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 14%. Shares of AMD have rallied 68.3% year to date.


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Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report


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