Zoom Video Communications (ZM) 25 Nov 242025 Q3 Earnings call transcript

Hello, everyone, and welcome to Zoom's Q3 FY '25 Earnings Release Webinar.

As a reminder, this webinar is being recorded. And now I will hand things over to Charles Eveslage, Head of Investor Relations. Charles, over to you.

Thank you, Kelcey. to Fiscal video Year welcome Third for and of Quarter XXXX. everyone, Zoom's webinar earnings the Hello, I'm joined today Yuan; and by Zoom's Founder CFO, Chang. and Michelle Zoom's CEO, Eric

and financial today Our and was investors.zoom.us. a prepared find Also, you'll Investor after that, along or of with our These include a may be release, not page, reconciliation at non-GAAP for as financial be this from highlights slide able the earnings Relations GAAP earnings deck page information accordance downloaded issued remarks a market considered to be prepared financial results. release substitute isolation on should measures in copy the with from today's closed in to of GAAP. with a

filings stock including and financial make may financial with regarding will me on the XX-Q. which repurchase are expected such to macroeconomic program, opportunities, materially. from any are may and Eric. initiatives. update and including other including we and our are to this today's environment, make we regarding detail our statements our we Form obligation our quarter that, fourth believe no turn on These and annual product Zoom impacts forward-looking only market assumes benefits today quarterly call, what let and feature outlook discuss future actual the results on fiscal and product over and webinar. And the of Form based the report to results, our position, forward-looking discussion XX-K statements subject affect our in year full statements and strategy differ with XXXX, performance the releases our financial aspirations business risks These forward-looking expectations factors could in we SEC, that that reports statements on statements, and predictions go-to-market trends, for initiatives, business During growth initiatives,

we all we hosted customers. attendance, as early Zoomtopia, joining and a you, vision, on an showcase our AI-first and Connection. working Thank innovation milestone event, into been us our our was had Work we strength our a exciting everyone, it that Thank This unveiled today. customer work have Platform communication for Human extend to becoming you, annual October, We marks update In for Charles. opportunity and an collaboration platform. as record-breaking virtual for AI-first unified an platform amazing new and

information, time. is use to streamline customers prioritizing to smarter work goal Our and navigate of empower making today's challenges, tasks

and external orchestrate way Smart major a the of update Companion Query see took internal action awesome Meeting from synthesize reliable, come Summary, and At together evolves and information window agentic quality of X.X from release the AI platform. Zoomtopia, task-specific AI towards towards things innovation, of in all that steps Compose, of allows broader builds features the and context, AI to upon Companion we the a sources, Meeting like beyond products. This that it brings easy-to-use showcasing X.X, breakneck vision customers further meaningful across Zoom, obsession release the have AI customer with that expect pace across Zoom a the AI. and This Companion to

the CIO entire their Companion deliver exceptional to firsthand age RealReal, helping understand wasn't and experience stories want shared and Zscaler. secure, Zoom's similar in work. privacy. customers to great solutions, And want just example for to AI Zoom AI teams, AI of Architects before AI sacrificing not at demonstrates Lakhwara, the the provided HSBC, we their the want and they and spend. We AI existing democratize bar many Companion They Praniti a needs. to that of the AI of value and and organization, them. without easy-to-use raises Zoomtopia. how customers additional AI helped X.X They disrupt enhance Lake incurring across enhance results about it highlighted ExxonMobil for Zscaler, productivity Flato flexible their workflows, them thrive security

Building map TAM-expanding customization, create or value specific that personalization the products for and half add-on, knowledge AI AI third-party they road customers introduced aims coaching. like personalizing next in plugging alignment in Companion and with experiences first will industries and year, be into of our our AI, which of to cases. business additional AI a apps integrating their by we custom are AI bases, vision on where to meet through avatars democratizing Custom AI released use journey

paid of we the for remarkable the to next their traction lecture allow also have these AI available meet solutions the AI AI-first build year. education and in as needs we'll care Custom early customer from will add-ons as have unique industry-tailored These that deliver announced health we love quarter Companion us the Additionally, to customers' first doctor's and and industries upon office. hall that solutions

for workers worker the the in first success with frontline the Frontline half of market. our Workplace XXXX, of We further extending Zoom in Workplace large goal also Zoom underserved but available announced into the extremely

with the target our our further insights the where key Center Center have quarters. We pleased shift channel. retail, ability as Contact demonstrating and to XX,XXX substantial amazing over pillars with Workvivo our work like our secured had Contact a strengths EMEA unique installed we seats, from and will strong very core I'm into natural first adjacencies, that the work market style end, at such at base customer share AI largest-ever more. and extend to frontline-rich compete on-shift health strategy both win expand of to and into are and high care Companion-generated address will learnings the We management, gained of summaries, frontline communications, manufacturing. This mobile-centric features industries and have workers solution

quarter progress which leveraging and fact, In X across our Contact our deals success our channel, the to geographies industries. in amazing the top Center speaks to this resource came extend from

XX million in with ARR, Workvivo company. $X we Fortune We including incredible over new also date to saw as deal traction net Workvivo the X largest with with a landed customers

that beachheads we see Zoom to as happy Workvivo base benefit AI-first these Contact Workplace both demonstrates for and massive products and become Workplace for our motion Center bringing see employee of natural vision encouraged platform, resonating We are customers platform to looking work full and customers of is this a success to are to brand-new better upsell together a The expand. customers, bidirectional bridging to a of with Zoom customers well experience. worlds Zoom land-and-expand very and the

user your its you partnership. Thank power Workplace, for deal other trust Phone business experience, taxpayer expanded Agencia resulted After Now Tributaria, its taxpayers. seats, Phone relationship Workplace efficiency rapidly Contact record-setting amazing the employees for incredible footprint. ServiceNow experience Phone and national value and for for during Over their season let expanding in expansion seats. revenue Zoom me over ServiceNow, complete constraints years service Center with many services. This conjunction customers. Thank Zoom their of an to became some QX, convinced X in a of you, recognize in and of Thank like extraordinary with quality on-prem Spain's you, they ago, Already and for customers, transformation, their Zoom and Agencia, to adopted tax Agencia, scale service, QX. a enhance delivered XXXX, solutions to consider Workvivo system the Zoom in omni-channel total the Zoom. Zoom Platform with both of phone AI Zoom for XX,XXX our in moved elevate and further XX,XXX deployed delivering a Zoom our demanding

synergies Assist announced our deliver product As customers. we and Zoomtopia, AI Now boost offerings the our for deepening of AI integration workflow Companion advanced at are ServiceNow's with to Zoom generative

of It Board was our Bill us Zoom's honor member McDermott, at of CEO, a forward Directors, join an Zoomtopia. Bill. Chairman look Thanks, to is continuing having also We partnership. and strong who

payments transform from choosing They brand-new Redpin, proptech Redpin order customer Workplace channel came and to efficiencies Center with company, their cost innovative Business Let Accelerator and Zoom fintech way in the customers as and engage a opted partner property for operations. the a for and Zoom productivity Zoom agent customer me Revenue through Zoom. a major experience, and us international also solution thank best Elite, realize Zoom identified Plus trusted and enhance experience, to the leading as streamlining Zoom total Contact happiness, software including elevate services. to

provider benefits of network customers electronic for care practice SDK is Zoom's health more thank to deliver providers network-enabled medical empowering natively their of and seamless our systems adopting integrating Business the its through athenahealth, me Services virtual leading over and health to pleased Meeting record. services order XXX,XXX modern integrated technology, of athenaOne technologies. athenahealth leveraging cutting-edge our By let Finally, software reap telehealth. We're to into see Workplace and for products in video a Zoom Zoom's AI-powered so

reflects change announced platform connection we to Before our that corporate AI-first off vision name, growth. an Zoom Michelle, very into our today, handing Inc. it for excited for Communications, This share to our new long-term evolution human and work I'm earlier

you. to Now our over Thank new Michelle CFO, Chang.

everyone. and you pleased with we to enterprise by positive revenue hello, line I'm line and to all top statements, forward. that in great you, both forward announce profitability online. I Thank Zoomtopia. It for you growth and driven time, showed look in of I'm QX to year-over-year QX, trends troughed be going the kick earnings you excited partnering taking Eric, first through To to at us meet was and many In improvement previous our off, our with guidance beat and QX. in in

AI saw quarter. We partnership. Companion number part Center year-over-year. our of traction with Center. AI-first customers active few Contact X,XXX, up into users by quarter-over-quarter. in a as Workvivo surpassed markets growing year-over-year, and driven adjacent Zoom of with highlights are number Workvivo Meta XX% the progress than expanding And of more monthly we Here grew And A Contact the strength in Eric vision Zoom our XX% towards saw great mentioned, customers our XX% from growth

into Now end $X.XXX let's high grew This our the X% revenue to billion. guidance. was results. $XX In million QX, dive total year-over-year the of above approximately result financial

up which grew macro amidst reflecting of Our with continued in shift XX% X now online continued to makes enterprise our a X% revenue, up year-over-year. enterprise this stabilization revenues pleased total ongoing We're conditions. approximately point year-over-year,

year-over-year. XX churn. is in we saw year-over-year. of as our customers $XXX,XXX In QX, trailing points improvement X% Enterprise in These customer a ever XX-month This just term, shy than XX% revenue, X.X%, quarter contributing basis make up decreased up X,XXX to in of business, year-over-year lowest monthly the In reported revenue. more our now saw points customers upmarket X we ended we average which growth the our down with

at in came in XX-month XX%. was number trailing enterprise net dollar for expansion QX customers QX XXX,XXX. Our The of rate customers of Enterprise the end at approximately

As number our internationally. company of measurement distinguishes such, performance in X will with prior go-to-market between has growth our and we've shifts less time. Pivoting focus of over in customers motions valuable fluctuate Enterprise as our and quarters, a mentioned the become to

On flat. year-over-year. was Our constant EMEA Americas APAC APAC a revenue grew X%, year-over-year. grew EMEA grew and X% X% currency X% basis, and grew

Moving net of non-GAAP on reduction investments which, The in settlements, AI. to net margin excludes and QX as reminder, last effects. acquisition-related strategic associated in in to primarily QX compared year-over-year gross tax our as results, litigation expense and was investments, Non-GAAP associated gains due payroll a taxes, year. was XX.X% expenses, XX.X% compensation to stock-based

full margin year our will the XX%. be continue approximately FY gross expect of For 'XX, we to

high non-GAAP Non-GAAP diluted on last the result in approximately of of higher per guidance we $X.XX to exceeding compared $X.XX of XX.X% while end as income the investing progress managing from average translates operations million, year. Non-GAAP income continue last shares than weighted net to as year. $XXX diluted outstanding. non-GAAP emerging guidance our This above products. was was QX to high our of QX came AI, $X.XX in margin make QX in and share in platform our XXX of million and for XX.X% QX at expenses million, $XXX operating This end

period as Deferred well $X.XX practices QX, Turning balance to X% revenue lengthening terms. deferred discounting the to the driven year-over-year. year-over-year of by refinement be X% the the In billing continued up billion, grew we end expect of X% sheet. to at to revenue as

Looking at both our billed and unbilled contracts.

billion. increased RPO X% $X.XX approximately year-over-year Our to

flow cash year. Operating quarter $XXX recognize revenue Free the over XX% up of margins XX.X%, $XXX cash grew XX in million. expect in the respectively. decreased year-over-year as next in months, RPO QX XX% XX% of to from Operating flow quarter were the to and flow last million. cash and cash the X% year-over-year X% total flow free We to

$XXX million in equivalents approximately the the $X.X in Under share cash. $XXX excluding cash, million, plan, and of quarter-over-quarter we $XX the shares ended with million repurchases our marketable billion QX, $X.X for restricted by buyback preexisting X.X We purchased for QX, shares cash billion million. million. at we And XX.X quarter repurchased securities, end increasing

be X.X% to the which, growth. Turning at expect we approximately to $X.XX range in guidance. year-over-year In of QX, revenue to midpoint, billion billion, the $X.XXX represents

representing to to operations. be efficiencies margin non-GAAP to $XXX continue operating range at million of across as of the $XXX prioritize operating expect million, XX.X% we in the midpoint income We our an

Our share $X.XX to on outlook for non-GAAP million per $X.XX shares based is outstanding. approximately earnings XXX

outlook billion We growth. the 'XX. range are at represents approximately and to to profitability $X.XXX also full be revenue We in now for pleased expect X.X% FY top the of $X.XXX line year midpoint, raise the year-over-year of to which, billion, our

Our total of revenue environment. guidance assumes mixed a continuation macroeconomic

We billion an XX% operating non-GAAP to the expect the to margin in operating range at income $X.XXX our of $X.XXX representing be billion, midpoint. of

based $X.XX non-GAAP 'XX for FY per outlook shares Our outstanding. approximately to $X.XX is earnings million share for on XXX

the now towards expect to QX high in full of for the cash the increased results of operating our $X.XX in outlook to provided we previously FY end flow income for year. and flow be 'XX, range free billion billion $X.XX cash free the With

We're the the in an us our and drive to believe underscore to in unexecuted shareholder indicated are share This press authorization growth, our we and deliver we execute also for we fiscal to announce earnings Zoom the by returns. results reinforces the Zoom sheet top about financial approximately incredibly management shareholder has enables made that strong incremental end billion, progress the excited we've our queue 'XX. In customers investors. flow today, repurchase. $X.X and total entire and vision incremental Board first driving of to As for grateful trust the brings and our our billion to which and buyback release guidance customers team's management value our of platform returns. confidence $X Kelcey, support our line further and our our to AI question. our expect and Board excited please team, conclusion, authorized strong balance leverage differentiated cash The

will Thank session. into you our from And Morgan much, first so now Q&A Michelle. move will come mentioned, And question as we Instructions] with Marshall the Michelle Meta [Operator Stanley.

of needs. for they're Eric. customers were wanted you, interest where Great. to I to their road Zoomtopia for some Congrats of Maybe coming the take hearing AI you kind is sense you and quarter. of from a of just kind on just strongest kind on where map address looking out about the what get their of to

Yes.

really that theme So our they X.X question. with a Companion great Zoomtopia year. launched about AI the Meta, customers, of and already are accounts We who this AI. at That's And Companion. last we enabled AI is more the -- more over X mentioned also this million there year, are and enable AI Zoomtopia,

AI Given additional like quality, use of Companion. really ease the no cost, the and Zoom customer

and understand, X However, any to want after us. are year what's the they things new later, direction, there -- from also

features innovative same lot look like of our compare into our extremely built have also from -- other Enterprise quality, Meeting And be feedback Zoom users, And any customers at to like high they AI want Zoom at lot first AI and introduced Zoomtopia the that the additional Summary customers features X.X to and quality That's positive Companion new a like already also look and first customers can you Meeting our the versus also improving continue we quality. very also side. As -- the year Companion X.X, of the no very, X really and the half right? of a will also flexibility. again, why the all, by right? AI Companion the speed, customers have I And So at next Companion solution, months, right? At Zoom, customized time, if our some Summary, almost look a monthly of at confidence were you competitors. X.X. And AI available AI innovation, enjoy because, it's we our -- we the at AI our XX%, Studio. up trust very, that's AI so Companion -- active really right? last customers monetize. Overall, at cost, way, look positive And the

see, really charge the going additional And not Companion. are appreciate Companion, like at us. no cost. Zoom also overall, they really We for we So customer customer AI the to AI

So that's news us. for good very

Sachs. hear We Kash from Goldman now will Rangan with

to AI I'll with where they curious, Eric, we are budgets question of is had [ better appetite Michelle, from Zoom. to congratulations, Is of or I'm sense a you, conference macro. animal in destined there do you ], are tech your well. AI from slightly taking spend out a on tone products The it budgets of of out customer pleasure and also the congrats that first on call the Or budgets -- -- that spreads and particular? for on as post were Zoom's your echo attending for money earnings customers? conversations the pool budgets elections, the tech on from? the in coming higher Zoomtopia separate Zoom? And follow-up

looks you you, thank like Kash, are and driving. it

look I company, about AI, fund, all more the right? thinking to or support get they I they I think every So they are budget, right? should company different. every think is where right, should So now AI? cost, the at money allocate think Where

a they And customers, and internal budget. some have new

quality at given just positioned. look some right? the budget at they when all other try cost month, vendors consolidated money look ownership. the to customers the is they areas Zoom, Zoom, hey, shift I it the In small, customers, additional at no vendors and look right? and quality cost, positioned. plus at actually That's Zoom -- save better per say, better much additional the a cost no from at customers, better Some much some our they want few look at maybe cost. strength towards total think, and to comes to embracing into is reason You competitors, the on of look with Customers AI. And the user $XX, consult why AI per not again, of at the And particular,

Otherwise, positioned. And what, they guess each customer much they say, spend business, and they AI, we the why are subscribe are they service if to second software multiple charge every business -- with the going I vendors is to they to right. reason -- trust better also customers the going Zoom, software If You're are services. think almost have every again, That's question. more. back to

But look think, regulation every AI. of terms I I to think better also, they think tell. company, macroeconomic, doubling getting we ownership. better early to at Look at it's tell. too also for they vendors, quality, better is trust also all with every early and in a overall, way the total it's cost of I embracing about with company, And down And very are know, too a optimistic who AI. they as

that's think Zoom, reason why truly better I positioned. the believe much I

And assumes like I note maybe in, an can to is macro maybe our conditions of what saw we forecast like if unasked add relative Kash, conditions QX. in sort important but and spending

Arjun We'll go ahead and Blair. move on with Bhatia William to

Eric, And we Perfect. gears switch a Center. can maybe reacceleration to the little congrats bit Contact if here. on

Spanish drove You the service, little with the a on that That's believe, very some you elaborate very a Zoom just was have that, were What bit quarter. this maybe that Contact How saw in that? of factors some a to the revenue impressive. the Center maybe what replicate deal were competitive you maybe deals? I differentiating major what in other that can XX,XXX-seat like of that Can deal, it? process you factors And win deal like? was large

yes, question. Yes, great

So wear of Zoom given Center the Contact Manager. like question. still your really I General that, head I

think I things. few a

Zoom Contact In customer. trust they they performance. really before. if They tax more correctly, are actually recall they First than our They deploy, Zoom architecture of right? look scalable, Zoom. our already very Zoom I I a when delivered know at all, Center, a busy back-end And greater very season, XX,XXX seats Phone think,

of [ we from FedRAMP, also they workforce support other XX,XXX I had deployment architecture support very at not our few where look day trust, right? management and an at support know we our or build the architecture the is no X. quality of piece to the look channel. because all problem also they pace Contact our we ] and the from past As have amazing -- -- XX,XXX beginning [ management, X, innovation feature of And because quarters, the They have all also agent can from Center to again, like social large and PCI, the set, ], features up surge scalability, a and day very because, right, to when vendors, the mentioned,

the happy Contact very architecture That's already are they Zoom why reason scalable. Center. Our to very very, deploy the customers,

that's large deal, outside day perspective from that feel like, "Hey, support from team X," But architect we Again, say, already our you're talking perspective, XX,XXX an wow, with deal we a product an engineering agents. and on more Zoom more like right? look innovation, the well are especially and AI, think I that. So we to I our the piece and deals given at of more of very win customers positioned think, recognize potential

Our Securities. to going next Patrick with come Walravens JMP question is from

are you muted. Patrick,

you now. Hopefully, hear I'm me? unmuted Can

Yes.

Okay. if all Great. think right. focus Congratulations. that's going Michelle, I on to I'm you

far? why again asked think but venue us tell the just took Day, job, you with any next you points Analyst so and how you in -- And tenure, why can found would this helpful would share yet, maybe what you but at think next question you haven't bigger for be maybe to obviously you your us -- you're that I this you guided So a year? I terms of early then -- year about in

Yes. Great. Thanks, Pat, the for question.

I AI-first company and of if Zoom, starting the I could to seeds, to came a an the excited back of part and growth I Eric come the began in Zoom brand see lot people, going meetings. interview to platform and of planted the kind and our you because leadership me will, But in iconic I Let established think I the more as conversations process, got of just at more remind fruition. about where saw and to being and over go beginning

honestly, and got learning the pace customer has love that. And excited sense innovation. very delightful, the of about been see my So to maybe

amongst heard but I be has delight. think, think about it, I a before, been to it you've

is line, further us noted, line manage guide as 'XX, top focus the going be you has. And today the last I to allocation expenses to you to we And that part of continuing the my on as officially so FY how CFO then Kelly next think say certainly and as as getting the accelerating, really top terms capital for here margins we revenue maybe I'd guidance re-up always in look, our And saw with will buyback. guide is period. in have growth

until I'll my So take comments then.

with Piper Fish James Sandler has the next question.

Maybe, Eric, for you.

side, AI On talking margins. guys you impacting the the AI were about investments gross obviously

You thinking portfolio quarter. where that AI is it AI companion this on for we Contact infrastructure Michelle, more about for actually feeling about do the or last side the it the talked back-end you. generally? And you just, of modules? are How more into? about about Center investments think But and then going -- sort Is

sure despite you lengthening trends big lengthening but RPO On billings between difference the billing of a for about -- on noncurrent you through the really starting current RPO -- talked comment terms. there Can on happened us walk on what kind terms? this the divergence to though, We're billing and quarter. and just a see,

Yes, Jim, first address it's question. great can one. your a I

basically [ infrastructure right? We for improving Companion, Contact Agent, help platform, look workplace, leverage lot other Virtual time, offer the terms going AI well of same different, GPUs, our build and is and we Enterprise year. us GPUs also talent, AI technology AI have common AI Center a are Center, certainly but Essentially, we free we can we customized look right? to areas, the -- free, and features. as few at also technology to the we architecture innovate Center. can that keep can on the can right? cloud, Not those apply next Companion customization the ] Studio quality we is deploy also time, AI a That's One Zoom the monetize. to components and we have monetize. the do invest So think Workplace And same right, service I for more the and AI also with Workplace Zoom AI AI, for shared Contact more monetize. Contact Workplace. And the Center, introduce use AI the more So same Companion, also Customized can right? AI is the we right? Contact build can be more, invent of some at only Contact as the of like We share not to We also, monetization. At features. also Where Center Companion, we in infrastructure and same Zoom at

think certainly help -- also we and do with us more, more. I see in I mean, and all, not more long in, the coming today, about keep cost you can run you investing I more more worry and soon, think more like we can the at and well. monetize AI as That's why the investment because the monetization

very comfortable. feel far, so we So,

James, and lengthening we see the why piece up, question on go RPO seeing, are terms. just current specifically answer billing confirm, your maybe to And, we to

the with to of and way have outside coterminous Zoom. sell So think long is so a indicator, in current, we that both volume go And that to thing Enterprise, see, we're contracts, when particular, about that portfolio have as note, that of our up term, as our expiry expanding as you encouraged to by would our dedication that before Online we you current we an up I XX%. of to net-net, customers. it tend positive customers' cycle, went In temporarily goes

Zukin from Research. with now we And Alex hear Wolfe will

I'll questions. quarter. say, Maybe just, a solid on X.X Congratulations

churn opportunity it that's give starting double flavor the again. double start a AI ultimate a cRPO kind billings if portfolio, broader Just overall the side, us digits verticalization I quarter extrapolate accelerating Is points. monetization again. for monetization kind it? lower Companion it base? of look see kind Online the it basically Companion we that XX of when. And why flat; of should business business here? in as to Online the AI where for to basis interactions better you're companion the growing about from more see the terms and Is how, of when, XX shouldn't of KPIs, as at selling think see into Michelle, the see Eric, AI Center we expanding? I Enterprise digits to AI additions business, AI the On and of Enterprise forward every growing the you by native Is I scale, through getting I X.X? how stable, the Contact from as see

you to tag to on monetization? Eric, Or Yes. on front. I'm the AI do want into go happy the

address the second You one. can

first a Of course, is one housekeeping, can address later. just one. this basically, Then, the I

Yes.

question and going Alex, the about beat the overall your to about good answer we guide acceleration. implied And -- But We about to to 'XX to the say we I good forecast. to feel February. obviously, So good feel raise would feel until not we're QX.

If it's look above our HX HX. you at growth,

So what and said of on net-net, go what lot we've underlying what think said. And KPIs and guided, strong of it's and I terms we we've you it, to then kind look a fundamentals. the in delivering at you of there's

of FY represents way proxy for I not that is to the growth growth I So one confirm look, given think a you guide. growth think the believe revenue that think about the into midpoint maybe revenue going models we've about numbers is a to revenue reasonable -- probably gave, how but I'm to rate for 'XX. QX

Alex, ago, It call FY year X the the declined ago, Remember, A XX%. [ 'XX. share the X%. by you By way, business. by at if way, Online earnings detail mentioned ] FY right, QX the 'XX, in we years look see more Yes. we Online. will in

see You very Now this year, trend right? the positive. flat, is

And not the Accelerator, monetization. Zoom for So both back Revenue We like product tailored right? Contact care, like our educators, Center, Zoom also focused of Frontline for the AI today health monetize the product, same question to for Workplace a vertical Enterprise. services like really coming the those already workers, Workplace but like newly -- for -- time, services, AI for industries. At on the we

not leverage we X quarters. one Companion think hand, last a we at do performance -- maybe right? I AI at I year, it to no insurance in the the They available stable, And I -- switched AI use, customer. at QX, of AI, lot see same think first of won also, to Workplace the cost, secure, next right? I half the greater AI year. Zoom gave look But for be a and further Companion Zoom the platform, with Companion XX,XXX opportunities. very Companion because monetization customer AI right, of some platform. Customized ease will Zoom the large additional build relationship and the not also the think Like if won more time, the we do calendar monetize company. of only one next quality recall correctly, right? we some half the today, a I platform. And -- customers second Studio why more example, seats, in a on but plus

like they big their there cost, when no collaboration are sure, some so-called employees additional they why analyze platform. Zoom analyze For competitors select there, total as their that's AI our of free, but also the Zoom cost, Zoom one key for service, they the at Companion reasons

QX. in right, win, big very a that's So

So...

certainly, would of then sorry, I then online, about get kind is Online your slightly I And And the for this back, way question to question. because of QX lot, sort to the flat the ambition a that down. growth. think is In

to answered make questions. want your Online sure Just I

Panigrahi on And Siti with to Mizuho. we move will

about Great. growth. top you call Michelle, and first to your congrats hear earnings me? focus your you on talked Can line reaccelerate guys

Yes.

Okay.

that a mostly to you are Workvivo, multiple in NRR growth. and will now stabilizing, you like products, good products talk the platform, about see of it's your about lot Center, Custom AI Contact Phone, different layer talking So Companion,

So do look products it are how more comes platform? core year, of products as out you about? these the which the next to layering you when And growth to you forward excited rack to

would the just and great Zoom, of with of I foundation guess kind I'll of sort I Yes. a It's answer. start such in then out question. build my

excited So by that online foundation We're that churn Zoom obviously the very look, rate. deceleration the hard of wins excited the seat seeing. We're down-sells that by move competitive Meetings. we're excited platform. we're And of the the working seeing. We're to was to we're by

growth lot that I products, but some announced for international up terms a us. there, will no significant in expansion, we then to lot the in emerging of think We'll platform Workplace seeing, lot of our growth. Zoomtopia, could then asked So with business. And monetization call driver that will we time, still and at we decreases churn. in a I additional of out -- as when I over the said revenue our momentum them customers part come is time. in guess times, that continue in of a And we're growth of certainly durable of market. There's product can And growth as on vectors growth think will get more which foundation at kind shift the points growth say or land of to proof we're what expand. would be at a been Workplace. product sort Center also forward. And vectors -- I Contact that see of growth That our a we AI, our them bring think Workvivo, I to continue. a our many that -- grow out we channel to in has accelerates mean of there's I that cost any the Eric call products think build the those certainly, would you like really certainly Phone, we our to go products the elements or then, we with today, and I or call as we things you'll excited Workplace, continuing going about foundation of in AI that from It bring about has that and great our portfolio of But

the product of beyond lot growth, do. of a think sort can I more So levers a there's traditional -- we lot of

Scotiabank. with Verkhovski Allan

you being Contact of the congrats walk Michelle, pace the the through there. slight Can about from us conservatism a quarter? QX guide came just deals perhaps growth the Center the refresh of you deal seats. echo deferred with the XX,XXX level as of growth in give which in to seen right large X% looks revenue like we've guys over on a your us a like are the embedding quarter, And There of X%? the strong highlighted beats quarter. you're deferred quarter it a in in you is I'll revenue in puts and the there takes were number expecting, change

Yes.

So of to of expect discounting reorient it X% billing to will X%, just that be And -- all, of grew that guided are The driving that tightening guided or say terms. X% those of into it QX. to everyone. and I in first dynamics what's we lengthening obviously we X% would to continue QX, we to so and

So in of may much think -- terms be of how about same. terms the what our it's I to philosophy, it guidance say, very in would

guidance philosophy I've similar been had a So what at historically has to Zoom. continued

said our to fluctuations that that thing has deferred quarter-to-quarter other better some the is business I historically, you'll what would Zoom ultimately The see revenue indicator that in measure different is given nothing from mention, and revenue. for

what So would people really to. that's I point

Bank America's question. the of And Funk next has Michael

Yes. Great. One for you, Eric.

really in all. new Zoom created that have space communication iconic areas, now and Video, other it solution point names So an you captures into that brand owned with expanded

You have Phone now.

top, arguably some the You even products have edging Center, adding with out. that work Contact you're AI into rolling management of on

less areas. is competitors now and delineation between other the in yourself So clear

based important win how about market? So how is Is new product? purely price it you business? to you Or do attacking the think try on as

Yes.

a that's question. So great

is correctly, customer customer from better gave really Zoom Insights year Workplace, of the core like essentially online, customer it section. First in than may our look the same only experience call work I At really platform. all, any reason is ago, more Peer a one the report, our right? not they the we users price right? for of product, Gartner the and time, We the and always lot Look day X, us. you the because and recall likes the about we product. Because make introduced that that a sure see of the our increased AI-first suite, do think right, leader issues. that, the now. we price, other like at our new why philosophy product. service, product at better if be I a and and That's us the the And better like truly recently price strength products,

solutions product. Now -- Phone bought the and like many also to ago, point a [ also actually be Whiteboard and used lot years of Meetings our customers, they point and ]

costs, other they sure, can the the customer the we the with And for They Zoom. the our and sticky look can right? entire time and the additional road, and at Zoom And at tries or platform. more. leverage more approach, with Custom same Now down the AI at more prefer and Companion AI platform brand innovations, from service monetize no

do And We kind call with want competitors. your right? build increase not You're we They every free. of a Essentially, to to want then some to do want year, something that trust. similar long-term stuck do to price. that. don't competitors, for We they

the well. opportunities and player introduced and think would as the time, they for stable, to some consolidate very that and perspective, also, not like ease Given customer to realized platform more we mention a more only From us services, more Zoom I AI monetize into of not platform. Zoom as use, to

Yes. strategy. that's our So

We will Samad from hear Jefferies. now with Samana

in on mid-tier that from is be next in us how and the congrats of should You've Workvivo, Customers XX% much and would Can it product, think Workvivo. 'XX I think maybe year-over-year. that good about the the we ramp? had the about stages on you there. Meta grew customers growth momentum and announced would quantify going quarter. echo that momentum how be 'XX you're about thinking help forward? Can how Meta sunsetting Workplace Maybe Meta I'll it know you toward over coming

Great question. Yes.

to feel free So chime in. Michelle,

look That's at because years ago. part of work I I think we Workvivo, you And -- platform. very be the X engagement. will acquired important. This employee think, Zoom

retire also, cool, ago, the -- reason and I think That's other team the better quarters on product. few Workplace decided -- company, them. And we scalable, and a AI, the of very very they focused product. that to lot screwed that is They a have acquired much positioned. right, why things, Meta

is Workplace, meaning decided a as also there Meta partnership, build sure, as feedback, who right, Zoom For exclusive out right? have because customer right, go They some Workvivo product the and the Workvivo. based are customers migration there So on an But well. maturity, other with partner, replace they deploy vendors for tools, right? to to with product that the the

as some of and those a Meta that's very all Workplace a very at do of migration. think already. look company. pipeline our is of think the Again, you If We I deals, have small SMB. because also, a on This customer, integrated deals strong we I well. also almost not top customer focus Zoom not large And

they also Zoom even a customer Workplace deployed Workvivo. Some Zoom but not

on we think think and I down the strong business. give on innovate more more to us want pipeline to further very also also, opportunity that and I double is grow And that, very Workvivo, promising.

year-over-year, think look think business down pretty growth the exciting. I road. you business rate the it's that and quarter-over-quarter, at to And contribute our can I more

frontline. said getting and of add growth. large Maybe the standpoint, if underlying in been as speak as expansion the growth a partnership geo a build our We're things you up the partner quantify natural of it customers they not well lot just well focused metrics in they industries And on story dynamics things as look the holistic from prepared But from to that a that lot retail think has driving breadth. going at Meta those Zoom to to we've Workvivo we strength to a that is like lot my for or certain to tell of as I remarks, the more yes, it. in

of think, yes, a Eric the underscore Meta dynamics part durable that, things talked of some partnership and the that is I lot So about. there are to

come Radke with Tyler Citi. question next The will from

on margins. I as to question Zoom. you earnings wanted ask to think again Congrats wanted I here Michelle. CFO how of first my about direct the call to

the look we very were down margins year-over-year. at operating slightly if So QX,

for a philosophy, you put around What in that year? give if of were the get just points before? above your that path Zoom still the in own year-over-year than some they're maybe sense are Just QX, at framework we give to if I How different maybe about of for guided point of long-term the you be that look of long-term next operating there. And high then margins things to we you think expect you I how expenses? done about things just up. think back a X Day. think is you're too, couple how to should Should operating guide out to end path round Analyst long-term ROI down the could us case terms evaluate at your that you margins?

Tyler. question, and Great you much, thank very Perfect.

and So reemphasize investing in I important say, our in to We're it's investing think platform. just we're would I what we're We're businesses, emerging investing growth in AI. in. investing the

have, is and As we're it's I than top for different we're which sort and the had going forward. of don't going going it frame maybe I'll that think before, think I invest sets for Kelly the Eric up frame line strategy to growth, to that our invest

terms I and return, the looking that at so spending really and have is to look, know to take growth? And each where think just But to savings before. my something allocation, alignment going emphasize going margin the 'XX for culture -- a noted, had internal are because capital that we our operating driving than to sure is a approach how of we're that things lower Eric is give lot and culture, questioning line it's should our towards the want -- is expenses investments February I in guidance to capital that you in of remains FY I mentioned gave, FY top We 'XX. And we'll or dollar I going are make. we and allocation. employ questioning we ways of come be to and FY back again, so And so as of Zoom approach But to as 'XX disciplined I towards other going spend those guidance. terms it's in think long-term every come strategic not scenario time need we'll of you philosophy, where and those and having I that that that back that making we same. we'll margin really value make through sure going of do that, offset a guidance look, going in investments. the that a long-term said of thing, our today a

Yes.

to Just to said, quickly on what Michelle add Tyler.

know I quarters, our side. way our think if track very like the of especially President team, you cost automate, us led ways further He to on, X, see the let's Product, that always lot Velchamy. do a have right? for with any COGS I of they where our know area I world-class always very high X because a approach. as they a of AI, Even record, I for they I'm one proud to COGS, team, confidence spend his how further to investment even some and cost, reduce disciplined come the team, savings. That's DevOps can on very, time look you and And normally -- more optimize. at company by up say, manage not to optimize

I to very think ideas further with reduce that, investment, have high I the confidence. like or up come I better personally the X can team Even cost. like more X quarters feel some something

to Michelle and Eric, going we have Murphy one come question. with time additional JPMorgan. It's from Mark for

product the ratchet monetization you stickiness internal and real own to was drive see repositories or is from that to that, their think you. Eric, the I Companion because data one per would triggers. I perhaps wondering going user customer interest integrate also triggers AI important you're into I believe would some that $XX month speak to to if higher. per it's the of seeing that can Great value that

I'm how maybe point. So at kind of potential are can they and monetization showing scenarios many that the to price therefore, curious interest, think just that design how customers what through

Yes.

So Mark, it's a great, great question.

Companion. Also, the why ago few They we feedback, a to AI that to language customers. [ Studio with want So like Customized introduced ] Enterprise make they some sure, large quarters AI or How Companion that's AI model. the hey, many reason shared we because, right? their into AI federate customers, approach. build us own they they Companion So federated -- to and talked already our AI

how customers, that. content, they base, large to like have with connect very a And some knowledge

right, a to like have of how to even lot AI those right? And data perspective, Workday, as and as a from avatar, customized and also sources, like Atlassian an they culture with connect Box a Some right, have other systems, beginning -- employee personal ServiceNow, they won't well. HubSpot, a customers,

need customer support AI customized to That's we have the customers ready, Enterprise why make Companion. To integrated AI tailored reason The introduced goal Companion, have meaning is why technology with AI requirements. the to they customers, requirements, So those for not Customized those sure it's free. That's right? together infrastructure and we the we working really the each reason customer.

again, because, engineers I very by solicited before, let's our content truly is about I several that. feedback feedback those already are built those Zoomtopia from that think think managers, satisfy think just needs. features build their product the -- Enterprise can our We from not the positive features

open going more is for which or important us people letting think try then to The looking customers, our our an and start of and and I add connecting if Mark, I get say here could kind are it, that, AI of I terms forward. will, going differentials powerful be sources, And a things think would for -- platform I kind you on-ramp. And price really in maybe, has custom the some in, Zoom when data approach, bringing SKUs which in with I addition important that in point, it differentiators very of approach. other competitive to if provide core of to think is reachable, democratization will at experience you

the is last Kelcey, the So this question? of

I'll you turn for the like. was to back That it last Eric. you'd question, closing if

all, of all for thank first call your earnings think, earnings time. Michelle first I is -- the you call. first This

Michelle, you. you in all in over the you. past See your the earnings like Michelle. thank and Kelly's call Thank I really call. before, feels for earnings thank like this time. you already transition not to on thank next times Michelle, and you're I And Kelly the you Feel February. your it's think So very first for earnings similar, call right? Zoom for investors -- feel, from great And many years. work all appreciate the again, many

you. right. All Thank

thank until family yours, everyone, Thanks, participation. happy Michelle. your today's Eric release. to next yours you season. and this And may concludes from again, earnings for And you care all always have our We holiday again, and a Take safe quarter. and