Zoom and Oracle form strategic partnership for customer experience

SAN JOSE - Zoom Communications, Inc. (NASDAQ:ZM), currently trading at $80.47 and identified as undervalued by InvestingPro analysis, announced Monday a strategic partnership with Oracle that will allow Zoom CX to run on Oracle Cloud Infrastructure (OCI), expanding the reach of Zoom’s customer experience platform. The company, maintaining impressive gross profit margins of 76% and a strong financial health score, continues to strengthen its market position.

As part of the collaboration, Oracle has implemented Zoom Contact Center for its own global customer service operations, integrating it with Oracle Service workflows. The integration began in January and is now supporting Oracle’s service agents worldwide. This strategic move comes as Zoom demonstrates solid operational efficiency with $4.75 billion in revenue over the last twelve months.

The partnership aims to help organizations improve customer engagement through faster resolutions, streamlined omnichannel interactions, and intelligent self-service capabilities.

"With Zoom Contact Center on OCI alongside Oracle’s market leading applications, we’re empowering organizations to unify customer interactions, employee workflows, and data into a single intelligent system," said Chris Morrissey, General Manager of Zoom CX, in the press release.

The joint solution provides unified customer engagement across multiple channels including voice, chat, email, SMS, messaging, social, and video. It also offers a comprehensive customer view by combining Zoom’s communication platform with Oracle’s unified data model.

According to the companies, the integration will particularly benefit customers in healthcare, financial services, retail, and hospitality sectors, given Oracle’s existing solutions for these industries. For detailed insights into Zoom’s market position and growth potential, including 8 additional key ProTips, visit InvestingPro, where you’ll find comprehensive analysis and the latest Pro Research Report.

Christine Sarros, Senior Vice President of Enterprise Engineering at Oracle, stated that the partnership brings together "the power of Oracle Cloud Infrastructure and applications with Zoom’s communication platform to give enterprises a foundation for AI-driven engagement."

The companies are showcasing the solution at Oracle AI World in Las Vegas, which runs from October 13-26.

This article is based on a press release from Zoom Communications, Inc.

In other recent news, Zoom Video has seen several updates from various analyst firms following its Zoomtopia event. RBC Capital reiterated its Outperform rating with a price target of $100, noting that Zoom’s long-term financial goals remain stable. Benchmark increased its price target for Zoom Video from $102 to $110, maintaining a Buy rating, influenced by the introduction of AI Companion 3.0, which enhances the platform’s AI capabilities. Mizuho also reiterated an Outperform rating with a $100 price target, highlighting Zoom’s business stabilization and product diversification. Cantor Fitzgerald maintained a Neutral rating with an $87 price target, observing a broadening monetization profile with growth in newer products like Phone and Contact Center. Stifel raised its price target to $90, maintaining a Hold rating, and emphasized the significance of AI Companion 3.0 in enhancing Zoom’s offerings. These developments reflect the company’s focus on innovation and growth amid evolving market conditions.

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