Financial Data and Key Metrics Changes - Total revenue for Q1 FY26 grew approximately 3% year over year to 8 million [20] - Enterprise revenue increased approximately 6% year over year, now representing 60% of total revenue, up two points year over year [21] - Non-GAAP gross margin in Q1 was 79.2%, slightly lower than the previous year due to investments in AI [22] - Non-GAAP income from operations grew 2% year over year to 22 million [24] - Non-GAAP diluted net income per share was 0.12 above the high end of guidance [25] - Deferred revenue grew 5% year over year to 489 million, representing a margin of 41.6% [27] Business Line Data and Key Metrics Changes - Adoption of Zoom AI Companion grew with monthly active users up nearly 40% quarter over quarter [10] - Zoom Phone revenue grew in the mid-teens, opening new markets and integrating with other productivity suites [13] - The number of Zoom contact center customers grew 65% year over year, with Zoom Virtual Agent landing its largest deal to date [14] - Total WorkVivo customer count grew 106% year over year, driven partly by a partnership with Meta [17] Market Data and Key Metrics Changes - Americas revenue grew 4% year over year, EMEA grew 1%, and APAC grew 2% [22] - The customer experience offering has rapidly evolved, with a triple-digit million ARR business growing in high double digits [15] Company Strategy and Development Direction - The company is focused on AI-powered innovation to redefine modern work and deliver cost savings and productivity gains [8] - Zoom is emphasizing a platform approach that unites customer experience and collaboration under one AI-first platform [12] - The company is committed to driving efficiencies and delivering AI capabilities in a scalable, cost-effective way [23] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand across the business, with no significant impact from macroeconomic conditions on online business [47] - The outlook for enterprise business is cautious due to elongating deal cycles and increased scrutiny on deal terms [47] - The company raised its full-year revenue guidance by 418 million [27] - A new Chief Marketing Officer, Kim Storan, was welcomed to amplify Zoom's value proposition [18] Q&A Session Summary Question: Adoption of Zoom AI Companion in SMB segment - Management noted that the number of active users has significantly increased, with more customers realizing the value of AI Companion [36] Question: Statistics on contact center and cautious outlook on enterprise - Management highlighted that Q1 was the largest quarter for ARR contribution from the contact center, with strong upsell opportunities [44][46] Question: Competitive dynamics in core video meeting solutions - Management indicated that employee preference for Zoom remains high, and the total cost of ownership favors Zoom's offerings [51] Question: Early reception of online monthly pricing increase - Management stated that the pricing increase reflects incremental value delivered to customers, with no significant churn observed [70] Question: Trends in enterprise deal elongation and down sells - Management reported continued low churn rates in both enterprise and online segments, with no significant down sells noted [123] Question: International growth focus - Management emphasized a global strategy, with strong resonance in EMEA for the combined communication and customer experience platform [117]
Zoom(ZM) - 2026 Q1 - Earnings Call Transcript