Videoconferencing firm Zoom is pinning its development plans on funding in AI, after reporting its first fourth quarter internet loss since 2018.

Reporting outcomes on Monday, Zoom stated it posted a internet lack of $104 million for the fourth quarter of its fiscal 2023, ended January 31, in comparison with a revenue of $490 million within the year-earlier interval. On-line income was additionally down 10% 12 months over 12 months to $481.7 million.

The loss was largely a results of stock-based compensation bills. In any other case, Zoom recorded fourth quarter complete income of $1.1 billion, up 4% 12 months over 12 months, with complete income for the fiscal 12 months 2022 reported as $4.4 billion, up 7% 12 months over 12 months.

Moreover, fourth quarter income from enterprise prospects was up 18% 12 months over 12 months to $636.1 million, and full fiscal 12 months enterprise income was up 24% 12 months over 12 months, to $2.4 billion.

Though on steadiness, the outcomes had been largely constructive, they’re a far cry from the dizzying ranges of development the corporate skilled through the pandemic and mirror a few of the challenges at present dealing with the tech sector.

Earlier this month Zoom introduced that it could be chopping 1,300 jobs, round 15% of its workforce.

Alluding to this on a name with analysts after the outcomes had been introduced, firm CFO Kelly Steckelberg stated that “there is a restructuring occurring to actually focus the sources on our enterprise prospects and be as environment friendly as we are able to in our business and small enterprise groups.”

On the identical name, CEO Eric Yuan described the cuts as a “painful train” however stated the choice allowed the corporate to reset to climate the financial setting.

The corporate has seen some contraction within the variety of Zoom seats being purchased by prospects, as organizations around the globe proceed to search for methods to tighten their budgets, Yuan stated. Zoom has additionally skilled headwinds when it comes to forex affect, on-line contraction, and deal scrutiny that continued into the corporate’s fourth quarter, Yuan added.

Regardless of the slowdown, Yuan appeared optimistic in regards to the path of the corporate because it strikes into its subsequent monetary 12 months.

Following latest bulletins from each Microsoft and Google round their investments in Chat GPT and Bard, respectively, Yuan famous on the decision that “the age of AI and huge language fashions has arrived” and that Zoom desires its prospects to learn from the expertise.

Commenting on the corporate’s fiscal 2024 technique, Yuan stated Zoom will look to “redefine teamwork” by providing “new immersive experiences that enhance worker engagement and fashionable collaboration instruments for ideation throughout areas and modalities.”

He additionally stated that by embedding AI into extra workflows, Zoom will be capable of assist customers work smarter, noting that options underpinned by AI and at present out there on the Zoom platform, similar to translation, captioning, and assembly abstract instruments, are only the start.

“All of this comes collectively as a collaboration platform that unites individuals to unlock their potential, permits extra dynamic and clever experiences and permits us to reimagine productiveness and work,” Yuan stated.

In February, Microsoft launched a brand new Premium model of its collaboration platform Groups, which will likely be underpinned by the massive language mannequin ChatGPT.