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Zoom recognized in the 2025 Gartner® Magic Quadrant™ for Unified Communications as a Service for sixth consecutive year
Globenewswire· 2025-09-26 15:24
SAN JOSE, Calif., Sept. 26, 2025 (GLOBE NEWSWIRE) -- Zoom Communications, Inc. (NASDAQ: ZM) today announced it has been recognized as a Leader in the 2025 Gartner® Magic Quadrant™ for Unified Communications as a Service (UCaaS). This is Zoom’s sixth inclusion in the Magic Quadrant for UCaaS, and Zoom is one of only two companies that have placements in both UCaaS and CCaaS Magic Quadrants. Zoom believes this recognition highlights the strength of Zoom’s AI-first approach to communication and collaboration. ...
Zoom's Global Expansion Picks Up: A Sign of More Upside?
ZACKS· 2025-09-23 15:26
Core Insights - Zoom Communications is evolving from a pandemic-focused video meeting platform to a diversified collaboration provider, offering solutions like Zoom Phone, Contact Center, Workvivo, and AI-driven Zoom Workplace [1] Financial Performance - In Q2 of fiscal 2026, Zoom reported revenue of $873.97 million from the Americas, a 4.6% year-over-year increase; EMEAC contributed $200 million, up 5.7%; and Asia Pacific generated $148.3 million, growing 4.2% [2] - The Zacks Consensus Estimates for Q3 fiscal 2026 revenues are $870.53 million for the Americas (up 3%), $194.32 million for EMEAC (up 4%), and $149 million for Asia Pacific (up 3.2%) [4] - Zoom shares have appreciated 2.4% year to date, while the Zacks Internet – Software industry and the Zacks Computer and Technology sector have increased 26.5% and 22.4%, respectively [6] Strategic Initiatives - Zoom is expanding its market reach through new distribution channels and strategic partnerships, including collaborations with AWS and PwC, to enhance enterprise penetration globally [3][8] - The company is focusing on AI-driven product enhancements, such as AI Companion 3.0, to resonate with multinational and hybrid workforces [3][8] Competitive Landscape - Competitors like Microsoft and Cisco are also expanding their global reach, with Microsoft leveraging its Office 365 ecosystem and Cisco investing in local data centers for Webex [5] - Zoom differentiates itself through AI-driven innovation and platform flexibility, which is crucial for building global momentum [5] Valuation Metrics - Zoom's stock is currently trading at a forward 12-month Price/Sales ratio of 5.14X, compared to the industry's 6.01X, indicating a relatively favorable valuation [10] - The Zacks Consensus Estimate for Q3 fiscal 2026 earnings is $1.42 per share, reflecting a year-over-year improvement of 2.9% [13]
Needham Maintains a Buy on Zoom Communications (ZM), Keeps the PT
Yahoo Finance· 2025-09-21 08:19
Group 1 - Zoom Communications Inc. is recognized as one of the tech stocks with the lowest P/E ratios, maintaining a Buy rating with a price target of $100 [1] - The recent Zoomtopia conference highlighted the integration of agentic workflows and the introduction of AI Companion 3.0, a significant upgrade within Zoom Workplace [1] - The company is strengthening channel relationships both in the US and internationally, which is expected to drive enterprise revenue growth [2] Group 2 - The Zoom business has stabilized, with expectations of mid-single-digit total revenue growth for FY26, surpassing the current guidance of 3.5% [2] - Zoom Communications offers an AI-powered work platform called Zoom Workplace that enhances collaboration and communication [3]
Zoom Cares commits $10M to democratize AI education and expand opportunity
Globenewswire· 2025-09-17 17:00
Core Insights - Zoom Cares announced a $10 million, three-year commitment to expand access to AI education and opportunity, unveiled during Zoomtopia 2025 [1] - The initiative includes a $5 million investment in K–12 AI education to ensure foundational AI literacy for students [1] Funding Distribution - The funding will be allocated through large anchor grants to national and global leaders in AI for impact, as well as regional and community-based grants [1] - First-round grant recipients include Code.org and data.org, which aim to empower learners and non-profits in the AI era [2] Organizational Impact - Data.org will host its fifth global challenge with support from Zoom Cares, focusing on innovative approaches that leverage data and AI for economic opportunity [4] - Code.org aims to integrate computer science and AI education into K–12 curricula, increasing opportunities for students from diverse backgrounds [4][5] Historical Context - Since its launch in 2020, Zoom Cares has contributed over $66 million to global communities, with this new commitment marking its most ambitious investment in AI education and inclusivity [5]
Zoom unveils AI Companion 3.0 at Zoomtopia 2025, enhancing agentic AI across the Zoom platform
Globenewswire· 2025-09-17 17:00
Core Insights - Zoom Communications, Inc. has launched AI Companion 3.0, introducing advanced agentic AI innovations aimed at enhancing productivity and collaboration across its platform [1][9] - The AI Companion 3.0 is designed to transform user interactions by providing personalized assistance, enabling users to focus on critical tasks and drive meaningful business outcomes [2][6] AI Companion Features - AI Companion 3.0 utilizes agentic AI to synthesize internal and external knowledge, delivering critical insights from various sources such as meeting transcripts and market research [3] - New AI note-taking capabilities allow users to optimize notes during Zoom meetings and other platforms like Microsoft Teams and Google Meet [4] - Proactive features like "free up my time" and in-meeting recommendations help users manage their workload more efficiently [5][6] - The AI Companion acts as a collaboration partner, understanding user context to provide tailored suggestions and improve work quality [7] User Experience Enhancements - A new work surface in web browsers and the Zoom Workplace desktop app offers a coherent AI experience, turning scattered information into actionable intelligence [8] - Real-time voice translation capabilities enhance collaboration with global teams, showing greater accuracy compared to competitors [11] - Custom AI Companion allows organizations to create tailored AI solutions, empowering admins to deploy custom agents for specific business needs [12] Business Services Innovations - Zoom's Customer Experience suite introduces AI-driven features to enhance agent performance and improve customer interactions [14][15] - The Zoom Revenue Accelerator provides sales teams with AI capabilities for prospecting and scheduling, streamlining the customer journey [16] Availability and Pricing - AI Companion 3.0 is expected to be generally available in November 2025 at no additional cost for paid Zoom Workplace accounts, with a Custom AI Companion add-on priced at $12 per user, per month [13]
Zoom's Enterprise Base Benefits From Workvivo Adoption: What's Ahead?
ZACKS· 2025-09-04 16:21
Core Insights - Zoom Communications' employee experience platform Workvivo is expected to drive enterprise expansion, with a 142% year-over-year increase in customers contributing over $100,000 in Annual Recurring Revenue, reaching 168 in Q2 of fiscal 2026 [1][8] - The acquisition of Workvivo is set to enhance Zoom's presence in employee engagement and internal communications, as enterprises increasingly recognize the importance of integrated employee platforms for hybrid work and retention strategies [2] - Integration with Zoom Workplace is anticipated to facilitate cross-selling opportunities, increasing customer lifetime value, while expansion into mid-market accounts is expected to create new revenue streams [3] Financial Performance - The Zacks Consensus Estimate for enterprise revenues in Q3 of fiscal 2026 is projected at $730.97 million, reflecting a 4.6% increase from the previous year, with enterprise revenues constituting 60% of total revenues [4][8] - Zoom's shares have increased by 2.3% year to date, underperforming the Zacks Internet – Software industry's return of 18.3% and the Zacks Computer and Technology sector's increase of 11.8% [6] Competitive Landscape - Microsoft poses a significant challenge to Zoom with its Viva suite, which is integrated with Microsoft Teams and Office 365, enhancing adoption among enterprises already using Microsoft's ecosystem [5] - Alphabet is also expanding its collaboration and employee engagement offerings through Google Workspace, leveraging cloud and AI capabilities [5] - Zoom's opportunity lies in cross-selling through Workplace and differentiating itself as enterprises seek unified platforms outside of Microsoft and Alphabet's ecosystems [5] Valuation Metrics - Zoom's stock is currently trading at a forward 12-month Price/Sales ratio of 5.15X, compared to the industry's 5.62X, indicating a relative valuation position [10] - The Zacks Consensus Estimate for Q3 fiscal 2026 earnings is $1.42 per share, reflecting a year-over-year improvement of 2.9% [12]
Zoom(ZM) - 2026 Q2 - Earnings Call Transcript
2025-08-21 22:02
Financial Data and Key Metrics Changes - Total revenue grew 4.7% year over year to $1.217 billion, exceeding guidance by $17 million [15][19] - Non-GAAP gross margin increased to 79.8%, up 128 basis points year over year, driven by cost optimization [17] - Non-GAAP operating income grew 10.5% year over year to $503 million, exceeding guidance by over $38 million [18] - Free cash flow increased 39% year over year to $508 million, representing a free cash flow margin of 41.7% [20] Business Line Data and Key Metrics Changes - Enterprise business revenue grew 7% year over year, representing 60% of total revenue, up one point year over year [15][16] - Average monthly churn in the online business remained flat at 2.9% [16] - The number of enterprise customers contributing over $100,000 in trailing twelve-month revenue grew approximately 9% year over year [16] - Zoom Phone sustained mid-teens ARR growth, gaining market share against competitors [11] Market Data and Key Metrics Changes - Revenue growth in the Americas was 5% year over year, EMEA grew 6%, and APAC grew 4% [17] - Deferred revenue grew 5% year over year to $1.48 billion, slightly ahead of the high end of the previously provided range [19] Company Strategy and Development Direction - The company is focused on three key priorities: delivering world-class AI, rapidly innovating Zoom Workplace, and scaling high-growth departmental solutions [5][9] - Zoom aims to strengthen its position as a leader in AI-powered collaboration, with significant growth in AI Companion monthly active users [6][7] - The company is expanding its collaboration with PwC to enhance its contact center and AI opportunities [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of customer demand and the ability to navigate a dynamic macroeconomic environment [91] - The company raised its full-year revenue guidance to a range of $4.825 to $4.835 billion, representing approximately 3.5% year-over-year growth [22] - Management noted that AI adoption is critical for driving business outcomes and customer engagement [7][11] Other Important Information - The company has been recognized with multiple awards for innovation and leadership in the UCaaS space [9] - The launch of Virtual Agent 2.0 is expected to enhance customer engagement and drive revenue growth [8] Q&A Session Summary Question: What ROI are customers seeing from AI solutions? - Management highlighted that AI adoption has significantly increased, with monthly active users growing four times year over year, indicating positive feedback and productivity improvements [28][30] Question: How are vertical-specific AI companions informing customer needs? - Management noted that early adopters are looking beyond basic functionalities and are interested in customized AI solutions that integrate with their existing systems [34][35] Question: What feedback has been received regarding the price increase for the online segment? - Management reported stable churn rates and positive customer feedback regarding the value proposition, indicating that the price increase has not led to significant pushback [41][42] Question: What is the outlook for the AI Companion add-on? - Management indicated that initial customer feedback has been positive, and there is a strong interest in customizing AI solutions to better meet specific needs [56][62] Question: What is driving the success of the contact center solutions? - Management attributed success to customer dissatisfaction with existing providers, the comprehensive feature set of Zoom's solutions, and the trust in the Zoom brand [99][100]
Zoom(ZM) - 2026 Q2 - Earnings Call Transcript
2025-08-21 22:00
Financial Data and Key Metrics Changes - Total revenue grew 4.7% year over year to $1.217 billion, exceeding guidance by $17 million [14][19] - Non-GAAP gross margin increased to 79.8%, up 128 basis points year over year, driven by cost optimization [17] - Non-GAAP income from operations rose 10.5% year over year to $503 million, exceeding guidance by over $38 million [18] - Operating cash flow grew 15% year over year to $516 million, with a margin of 42.4% [20] - Free cash flow increased 39% year over year to $508 million, representing a margin of 41.7% [20] Business Line Data and Key Metrics Changes - Enterprise business revenue grew 7% year over year, representing 60% of total revenue, up one point year over year [15] - Average monthly churn in the online business remained flat year over year at 2.9% [16] - The number of enterprise customers contributing over $100,000 in trailing twelve-month revenue grew approximately 9% year over year [16] - The number of Zoom contact center customers with over $100,000 in ARR grew 94% year over year to 229 [10] Market Data and Key Metrics Changes - Revenue growth in the Americas was 5% year over year, EMEA grew 6%, and APAC grew 4% [17] - Deferred revenue at the end of the period grew 5% year over year to $1.48 billion [19] Company Strategy and Development Direction - The company is focusing on three key priorities: delivering world-class AI, rapidly innovating Zoom Workplace, and scaling high-growth departmental solutions [4] - AI adoption is expanding beyond meeting summaries to include meeting preparation, task management, and integration with other services [5][6] - The company aims to maintain a long-term goal of 80% non-GAAP gross margins while balancing investments in AI with cost efficiencies [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of customer demand and the ability to navigate a dynamic macroeconomic environment [90] - The company anticipates continued growth in AI adoption among customers, which is expected to enhance productivity and operational effectiveness [30][31] - Guidance for Q3 revenue is projected to be in the range of $1.21 to $1.215 billion, representing approximately 3% year-over-year growth [21] Other Important Information - The company has accelerated its share buyback program, purchasing 6 million shares for $463 million [20] - Upcoming event Zoomtopia is expected to showcase new product innovations and customer success stories [12] Q&A Session Summary Question: What ROI are customers seeing from AI solutions? - Management noted that AI adoption has led to significant increases in monthly active users, with a fourfold increase year over year [29] Question: How are vertical-specific AI companions informing customer needs? - Management indicated that customers are looking beyond basic functionalities and are interested in customized AI solutions that integrate with their existing systems [36] Question: Feedback on the online segment and price increase impact? - Management confirmed that the price increase is on track to add $10 to $15 million in incremental revenue, with stable churn rates and no significant pushback from customers [42][45] Question: Insights on WorkVivo's growth and market opportunities? - Management highlighted strong growth in WorkVivo, with a focus on ensuring smooth transitions for customers and expanding opportunities in the medium-sized customer segment [51] Question: What is driving success in the contact center business? - Management attributed success to customer dissatisfaction with existing providers, the comprehensive feature set of Zoom's solutions, and a strong focus on customer experience [98][100]
Zoom Communications Reports Financial Results for the Second Quarter of Fiscal Year 2026
Globenewswire· 2025-08-21 20:05
Core Viewpoint - Zoom Communications, Inc. reported strong financial results for the second fiscal quarter, achieving the highest year-over-year revenue growth in 11 quarters and expanding its GAAP operating margin by 9 percentage points year over year. The company raised its full-year outlook for revenue, non-GAAP operating income, and free cash flow, now expected to be between $1.74 billion and $1.78 billion [2][5]. Financial Highlights - Total revenue for Q2 was $1,217.2 million, reflecting a 4.7% increase year over year, and 4.4% in constant currency [5][6]. - Enterprise revenue reached $730.7 million, up 7.0% year over year, while Online revenue was $486.6 million, up 1.4% year over year [5][6]. - GAAP operating margin was 26.4%, and non-GAAP operating margin was 41.3% [5][6]. - GAAP EPS was $1.16, a 65.7% increase year over year, and non-GAAP EPS was $1.53, up 10.0% year over year [5][6]. Customer Metrics - The number of customers contributing more than $100,000 in trailing 12 months revenue increased by 8.7% year over year, totaling 4,274 customers [4][5]. - The trailing 12-month net dollar expansion rate for Enterprise customers was 98% [13]. - Online average monthly churn was 2.9%, remaining flat year over year [13]. Cash Flow and Securities - Net cash provided by operating activities was $515.9 million for Q2, compared to $449.3 million in the same quarter last year [6][30]. - Free cash flow for the quarter was $508.0 million, up from $365.1 million year over year [6][30]. - Total cash, cash equivalents, and marketable securities as of July 31, 2025, amounted to $7.8 billion [6]. Financial Outlook - For Q3 FY 2026, total revenue is expected to be between $1.210 billion and $1.215 billion, with non-GAAP income from operations projected between $465.0 million and $470.0 million [13]. - For the full fiscal year 2026, total revenue is anticipated to be between $4.825 billion and $4.835 billion, with non-GAAP income from operations expected between $1.905 billion and $1.915 billion [13].
Zoom to Release Financial Results for the Second Quarter of Fiscal Year 2026
Globenewswire· 2025-07-31 20:05
Group 1 - Zoom Communications, Inc. will release its financial results for Q2 of fiscal year 2026 on August 21, 2025, after market close [1] - A live Zoom Webinar for the financial results will be accessible at 2:00 pm PT / 5:00 pm ET through Zoom's investor relations website [1] - A replay of the event will be available approximately two hours after the live event concludes [1] Group 2 - Zoom's mission is to provide an AI-first work platform for human connection, emphasizing productivity through its open collaboration platform, Zoom Workplace [2] - Zoom's Business Services, including Zoom Contact Center, aim to strengthen customer relationships throughout the customer lifecycle [2] - Founded in 2011, Zoom is publicly traded on NASDAQ under the ticker ZM and is headquartered in San Jose, California [2]