According to a recent report, the global video conferencing market is estimated to grow at 11% CAGR from $6.9 billion in 2022 to $14.6 billion by 2029. Online video conferencing player Zoom Video Communications (Nasdaq: ZM) meanwhile continues to try to diversify its offerings beyond video conferencing to enter the contact center market. After a failed attempt at an acquisition last year, it recently acquired a contact center player to make its presence felt in the industry.

Zoom’s Financials

Revenues for the first quarter grew 12% to $1.074 billion, in line with the market’s forecast of $1.07 billion. Non-GAAP EPS was $1.03, beating analysts’ estimate of $0.88.

Among key metrics, customers contributing more than $100,000 in trailing twelve-month revenues grew 46% to 2,916.

It forecast revenues of $1.115-$1.120 million and an EPS of $0.90-$0.92 for the second quarter. It expects to end the current year with revenues of $4.530-$4.550 billion and an EPS of $3.70-$3.77. The market was looking for revenues of $1.12 billion and an EPS of $0.92 for the quarter and revenues of $4.54 billion and an EPS of $3.73 for the year.

Zoom’s Acquisitions

Recently, Zoom announced the acquisition of San Mateo-based Solvvy, a conversational AI and automation platform. Founded in 2013 by Justin Betteridge, Mahesh Ram, and Mehdi Samadi, Solvvy is a machine learning startup that deploys an AI-powered self-service customer support agent and delivers immediate financial returns for businesses. The terms of the acquisition were not disclosed.

The acquisition will allow Zoom and Solvvy to offer elevated customer service experiences to a global enterprise base and work quickly to capitalize on new opportunities in contact center and customer support. Prior to the acquisition, Solvvy raised $16.5 million in two rounds of funding led by Signatures Capital, True Ventures, Pear VC, Scale Venture Partners, Investment Group of Santa Barbara, Carnegie Mellon University, and Hamid Borkhordhar. Its most recent round was held in October 2017 where it raised $12 million.

Zoom has been looking to expand its presence into the contact center industry. Last year, it had tried, but failed, to acquire Five9 in a bid to launch into the industry. Earlier this year, it had also announced the launch of Zoom Contact Center, an omnichannel customer engagement solution that is optimized for video and is integrated into the Zoom client. The solution has integrated unified communications with contact center capabilities to help customers connect over video while having access to channels like voice, SMS, and webchat.

Its stock is currently trading at $113.13 with a market capitalization of $33.38 billion. It was trading at a 52-week low of $79.03 in May. It had soared to a high of $406.48 in July last year.