Financial Data and Key Metrics Changes - In Q3 2025, the company reported a net revenue of CNY 5.5 billion, reflecting a year-over-year increase of 10.4% from Q3 2024 [17] - Adjusted net profit reached RMB 1,060 million, representing a 16.5% year-over-year growth, with an adjusted net margin expanding to 19.2% compared to 18.2% in the same period last year [18] - Gross profit increased by 14.4% year-over-year to RMB 3.6 billion, with a gross margin of 65.7% [22] Business Line Data and Key Metrics Changes - The core OTA business revenue grew by 14.9% year-over-year to RMB 4.6 billion, driven by accommodation reservations, transportation ticketing, and other segments [18] - Accommodation reservation revenue reached RMB 1.6 billion, a 14.7% increase from Q3 2024, attributed to higher hotel room nights sold and a slight increase in ADR [18] - Transportation ticketing revenue was RMB 2.2 billion, marking a 9.0% year-over-year increase [20] - Other business segments saw revenue of RMB 821 million, a growth of 34.9% year-over-year, primarily due to the hotel management business [21] Market Data and Key Metrics Changes - The annual paying users reached a historic high of 253 million, representing a year-over-year growth of 8.8% [11] - The cumulative number of passengers served on the platform exceeded 2 billion, indicating a stable annual purchase frequency of 8 times per user [11] - The international air ticketing business accounted for around 6% of total transportation ticketing revenue, up about 2 percentage points year-over-year [30] Company Strategy and Development Direction - The company aims to maintain its focus on the mass market while expanding its outbound business and exploring new growth drivers across the travel industry [5] - The acquisition of Wanda Hotel Management is expected to accelerate the growth of the hotel management business and strengthen the company's competitive positioning [11] - The company is committed to integrating AI technologies to enhance operational efficiency and user experience [5][15] Management Comments on Operating Environment and Future Outlook - Management noted that the travel market in China is showing robust growth, driven by rising demand for immersive experiences and innovative service models [3] - The company plans to capitalize on market opportunities while managing risks with discipline and prudence, aiming for robust growth in both top line and bottom line [24] - Management expressed confidence in achieving long-term sustainable growth and delivering value to stakeholders through a clear strategic roadmap [5][34] Other Important Information - The company has achieved an MSCI ESG rating of AAA, placing it among the top 5% of companies globally in its industry [15] - The standalone app has seen strong growth, with daily active users hitting nearly 5 million before the National Day holidays [12] Q&A Session Summary Question: Future growth engines regarding international business and hotel management - Management highlighted that the outbound business is a key growth driver, with expectations for rapid growth and profitability in the coming years [30][31] - The hotel management business is expected to expand significantly, with a focus on integrating Wanda Hotel Management to enhance offerings and profitability [32][34] Question: Future hotel ADR trends and competition in the domestic market - Management noted that domestic ADR has stabilized and is expected to improve, driven by a shift towards higher-quality accommodations [39][40] - The company believes it has strong defensive moats against competition due to its established supply chain and user understanding [42][43] Question: Margin trends and AI technology impact - Management indicated that margin expansion remains a priority, supported by improved operational efficiency and AI integration [55][57] - AI technology is expected to enhance operational efficiency and user experience, contributing positively to the company's performance [58][60] Question: Impact of recent incidents in Japan on business performance - Management does not expect a material impact on full-year performance but will monitor developments closely and adjust strategies as needed [63]

Zhihu (NYSE:ZH) Q3 2025 Earnings Call November 25, 2025 06:00 AM ET Company ParticipantsYolanda Liu - Director of Investor RelationsWang Han - CFOZhou Yuan - CEOVictor Zhou - AI AgentVichy Wei - VP of Research TeamConference Call ParticipantsNone - AnalystDaisy Chen - AnalystOperatorLadies and gentlemen, thank you for standing by, and welcome to the Zhihu Q3 2025 Financial Results Conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a quest ...

Financial Data and Key Metrics Changes - In Q3 2025, the company achieved total revenues of RMB 658.9 million, a decrease from RMB 845 million in the same period of 2024, indicating a narrowing year-over-year decline for the third consecutive quarter [20][21] - The non-GAAP operating loss narrowed by 16.3% year-over-year, reflecting improved operational efficiency and disciplined cost management [4][20] - The GAAP net loss for Q3 was RMB 46.7 million compared to RMB 9 million in the same period of 2024, while the adjusted net loss on a non-GAAP basis was RMB 21 million compared to RMB 13.1 million in the same period of 2024 [23][24] Business Line Data and Key Metrics Changes - Marketing services revenue was RMB 189.4 million, with the year-over-year decrease narrowing, indicating the bottoming out of the adjustment cycle [10][21] - Paid membership revenue reached RMB 386 million, with average monthly paid members increasing by 8.1% sequentially to 14.3 million [14][21] - Other revenues were RMB 839 million, primarily due to the strategic refinement of the vocational training business, which has been reclassified into other revenues [22][24] Market Data and Key Metrics Changes - The daily creation of high-quality content increased by over 25% year-over-year, with professional AI-focused content up by more than 30% compared to the same period last year [6][7] - The user base remains stable, with MAUs showing modest growth and average daily user time spent delivering double-digit year-over-year growth for six consecutive quarters [36][37] Company Strategy and Development Direction - The company aims to achieve non-GAAP break-even on a full-year basis, focusing on structural optimization, service refinement, and balancing commercialization with community health [4][20] - The integration of AI capabilities is a core strategy, with plans to enhance user experience through AI-powered tools and features [30][39] - The company is committed to maintaining a healthy ecosystem by investing in trustworthy content and expert networks while cracking down on low-quality content [35][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year profitability in 2025, with Q3 and Q4 being used to fine-tune operations and make targeted investments [46][50] - The company is optimistic about the recovery of its marketing services and expects sequential growth starting in Q4 [47][50] - Management emphasized the importance of real human interactions and trusted content in the AI era, positioning the company as a connection layer for users [42][43] Other Important Information - The company repurchased 31.1 million Class A ordinary shares for an aggregate value of $66.5 million, reflecting confidence in its valuation and future prospects [24][54] - The Yanyan Story initiative has successfully generated significant engagement and international interest, showcasing the potential for Chinese digital literature [15][16] Q&A Session Summary Question: Update on AI progress and integration with the Zhihu community - Management reported that the penetration rate of Zhihu Zhida exceeded 15%, reflecting strong user endorsement of the AI+ community strategy [28][29] Question: Status of Zhihu's user ecosystem and future product design - Management indicated that the community ecosystem is healthy, focusing on content quality and user structure, with continuous improvements in user engagement and trust [34][36] Question: Progress of adjustments in each business line and outlook on profitability - Management confirmed that marketing services revenue is expected to recover sequentially, while the paid membership segment is still in transition [44][46] Question: Shareholder return plan and progress - Management highlighted the company's active buyback program, expressing confidence in reaching profitability and maintaining shareholder value [54]

Financial Data and Key Metrics Changes - For the six months ended September 30, 2025, the group's revenue decreased by 6% to HKD 3.2 billion compared to the previous year, primarily due to weak demand and competitive pricing in the Chinese mainland operation [2] - The gross profit margin decreased to 51.1%, with operational profits down by 4% to HKD 247 million, mainly due to a decline in gross profit [2] - Profits attributable to shareholders increased by 1% to HKD 172 million, aided by lower finance costs and income tax [2] - Earnings per share rose by 2% to HKD 16.2 [3] - Capital expenditure for the period was HKD 57 million, slightly higher than last year, with cash on hand at HKD 1.27 billion [3] Business Line Data and Key Metrics Changes - The Chinese mainland unit's total revenue was HKD 2.9 billion, down 7% year-on-year, with operating profit decreasing by 14% to HKD 326 million [8] - Hong Kong operations maintained strong performance, with an operating margin of 12%, down 1.7 percentage points [5] - Australia and Singapore units showed growth, with Australia-New Zealand revenue increasing from 8% to 9% of total group revenue [8][12] Market Data and Key Metrics Changes - The Chinese mainland unit accounts for 55% of total group revenue, while Hong Kong operations contribute 34% [8] - The plant milk category in China declined by 10%, and the tea category's growth slowed to 5% [9] - In Australia and New Zealand, revenue increased by 5% in local currency, reflecting growth in the plant milk market [12] Company Strategy and Development Direction - The company aims to enhance capabilities in the Chinese mainland to improve top-line performance, focusing on general trade and new channels like online commerce and snack chains [6][10] - In Hong Kong, the strategy includes accelerating top-line growth despite a slower retail environment [11] - The company is committed to cost control and efficiency improvements across all operations [5][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged short-term challenges but expressed confidence in long-term growth potential [7][15] - The company is adjusting its commercial strategy in response to evolving tariff situations affecting North American business [12] - The focus remains on driving market share in both the plant milk and tea categories, with ongoing product innovations [10][11] Other Important Information - The company continues to drive cost reduction programs to improve profitability in various markets, including Singapore and the Philippines [13][14] - The Philippines market is experiencing healthy growth in the plant-based category, with a focus on scaling and profitability [14] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Performance and Key Metrics - For the six months ended September 30, 2025, the group's revenue decreased by 6% to HKD 3.2 billion, primarily due to weak demand, higher trade spend, and competitive pricing in the Chinese mainland operation [2] - The gross profit margin decreased to 51.1%, with savings from favorable raw material costs and production optimization partially mitigating the adverse sales performance [2] - Profits from operations decreased by 4% to HKD 247 million, mainly attributable to a decline in gross profit [2] - Profits to shareholders increased by 1% to HKD 172 million due to lower finance costs and income tax [2] - Earnings per share was HKD 0.16, an increase of 2% compared to last year [3] - Capital expenditure for the period was HKD 57 million, slightly higher than last year [3] - As of September 30, 2025, cash on hand was HKD 1.27 billion, with a gearing ratio of 20% [3] Business Line Performance - The Chinese mainland unit's total revenue was HKD 2.9 billion, down 7% versus last year, with operating profit decreasing by 14% to HKD 326 million [8] - Hong Kong operations maintained strong performance but were temporarily affected by Vitaland, Macau, and exports to the United States [5] - Australia and Singapore units sustained growth, with Australia-New Zealand revenue increasing by 5% in local currency [12] - The Hong Kong beverage operation sustained its leadership market shares in both plant milk and tea categories despite a slower retail environment [11] Market Performance - The Chinese mainland unit remains the largest operation by revenue at 55% of the group, while Hong Kong operations account for 34% of total group sales [8] - The plant milk category in China has declined by 10%, while the tea category's growth decreased from double digits to only 5% [9] - In Australia and New Zealand, the adoption of plant milk continues to develop steadily, contributing to revenue growth [12] - The Philippines market for plant-based products continues to grow healthily, with double-digit year-on-year growth since entry [14] Company Strategy and Industry Competition - The company is focusing on improving its capabilities in the Chinese mainland to enhance top-line performance, particularly in new retail channels [6][10] - In Hong Kong, the company aims to accelerate growth in the second half of the financial year [15] - The company is also working on improving its route to market in the general trade channel while expanding into new channels [10] - Cost control measures are being implemented to reduce corporate expenses and improve profitability [5][15] Management Comments on Operating Environment and Future Outlook - Management acknowledged the short-term challenges in the market but expressed confidence in the long-term potential for continuous scaling up [7][15] - The company plans to strengthen resources in the Chinese mainland to improve performance in general trade and accelerate growth in new channels [6][15] - The management highlighted the importance of creative product innovations to drive market share in Hong Kong [11] Other Important Information - The imposition of tariffs by the United States has negatively impacted the North American business, prompting adjustments in the commercial strategy [12] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - For the six months ended September 30, 2025, the group's revenue decreased by 6% to HKD 3.2 billion compared to the previous year, primarily due to weak demand and competitive pricing in the Chinese mainland operation [2] - The gross profit margin decreased to 51.1%, with profits from operations down 4% to HKD 247 million, mainly due to a decline in gross profit [2][3] - Profits attributable to shareholders increased by 1% to HKD 172 million, driven by lower finance costs and income tax [2] - Earnings per share rose by 2% to HKD 0.16 [3] - Capital expenditure for the period was HKD 57 million, slightly higher than last year, with cash on hand at HKD 1.27 billion [3] Business Line Data and Key Metrics Changes - The Chinese mainland unit's revenue was HKD 2.9 billion, down 7% year-on-year, with operating profit decreasing by 14% to HKD 326 million [7] - Hong Kong operations maintained strong performance, contributing 34% to total group sales, but faced challenges in Macau and exports to the United States [5][10] - Australia and Singapore units showed growth, with Australia-New Zealand revenue increasing by 5% in local currency [11] Market Data and Key Metrics Changes - The Chinese mainland remains the largest operation by revenue at 55% of the group, while Australia-New Zealand grew from 8% to 9% of total group revenue [7] - The plant milk category in China declined by 10%, while the tea category's growth slowed to 5% [8] - In the Philippines, the plant-based category continues to grow healthily, with double-digit growth year-on-year [13] Company Strategy and Development Direction - The company aims to enhance capabilities in the Chinese mainland to improve top-line performance, focusing on general trade and new channels like online commerce and snack chains [6][14] - Hong Kong operations will work to accelerate growth in the second half of the financial year [15] - Australia and Singapore units will focus on top-line growth and reducing operating losses [15] Management Comments on Operating Environment and Future Outlook - Management acknowledged short-term challenges but expressed confidence in long-term potential for scaling up [15] - The company is adjusting its commercial strategy in response to evolving tariff situations affecting North American business [11] Other Important Information - The company continues to implement cost reduction programs to improve operational efficiency and profitability across various markets [12] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 reached approximately $82.5 million, marking a 1.1% year-over-year increase and the ninth consecutive quarter of growth [5][12] - Gross margin remained above 48%, reflecting improvements in product mix and operating efficiency [6] - Non-GAAP net margin reached 24.4%, while GAAP net margin was 18.2%, expanding by more than 23.6 percentage points year-over-year [7][19] - Total operating expenses declined to $36 million, down 34.1% year-over-year, contributing to improved GAAP operating margins of 4.6% [19] Business Line Data and Key Metrics Changes - PaaS business generated $59.2 million, a 2.4% year-over-year increase, with the number of premium customers reaching 280 [13] - SaaS and others business generated $11.5 million, a 15.4% increase year-over-year, driven by growth in cloud software products [13] - Revenue from smart solutions reached $11.8 million, with a strategic focus on high-value solutions like AI energy management [14] Market Data and Key Metrics Changes - In the China market, AI Toy showed healthy growth with over 50 customers launching products powered by Tuya [14] - In the European market, demand for AI-powered solutions such as AI cloud storage and AI energy saving solutions continued to rise [15] - In North America, AI-enabled products like smart bird feeders recorded healthy growth [16] Company Strategy and Development Direction - The company continues to embrace AI, with smart devices equipped with AI capabilities accounting for 93.99% of total shipments [9] - A new AI Agent App is in global beta testing, aimed at developing a universal AI life assistant for users [10] - The company is focused on optimizing expense structures while maintaining key investments in business development [19] Management's Comments on Operating Environment and Future Outlook - Management noted that the global consumer electronics industry is experiencing an uneven recovery, with cautious customer demand due to macro uncertainties [5] - For Q4 2025, management anticipates a soft demand environment, but expects a positive outlook for 2026 driven by AI adoption [26][29] - The company aims to lower barriers for new users to adopt smart devices through the introduction of an AI assistant [39] Other Important Information - Operating net cash flow reached $30 million, a 25.7% increase year-over-year, with a net cash balance above $1 billion [20] - The platform had 1.62 million registered developers, a 23% year-over-year increase, indicating strong growth in the developer ecosystem [20][21] Q&A Session Summary Question: Business outlook for Q4 and 2026 - Management indicated that Q4 may see soft demand due to global macroeconomic uncertainties, but expressed a positive outlook for 2026 driven by AI adoption [25][29] Question: Details on the AI home agent and its impact - The AI assistant is designed to help users with various home tasks, aiming to simplify the user experience and lower barriers for new users [34][39] Question: Impact of AI on PaaS and smart solutions - AI is expected to enhance product offerings and drive demand, with a focus on seamless integration across business models [42] Question: Recovery progress in overseas markets - Recent tariff agreements provide stability for importers, which may positively impact demand in the upcoming promotional season [48] Question: Progress on AI technology commercialization - AI capabilities are being integrated across all product categories, with significant interest from developers and customers [49][51] Question: Decline in smart solutions revenue - Management anticipates a better year in 2026, with AI features becoming more standard in new projects [57]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 reached approximately $82.5 million, marking a 1.1% year-over-year increase, representing the ninth consecutive quarter of growth [10][4] - Gross margin remained above 48%, with a GAAP net margin of 18.2%, expanding by more than 23.6 percentage points year-over-year [5][17] - Non-GAAP net margin reached 24.4%, supported by improved gross margin and expense efficiency [5][17] - Total operating expenses declined to $36 million, down 34.1% year-over-year, while operating net cash flow grew to $30 million, a 25.7% increase year-over-year [17][18] Business Line Data and Key Metrics Changes - PaaS business generated $59.2 million, a 2.4% year-over-year increase, with 280 premium customers [11] - SaaS and others business generated $11.5 million, a 15.4% increase year-over-year, driven by growth in cloud software products [11] - Revenue from smart solutions reached $11.8 million, with a strategic focus on high-value solutions like AI energy management [12] Market Data and Key Metrics Changes - In the China market, AI Toy showed healthy growth with over 50 customers launching products powered by Tuya [12] - In the European market, demand for AI-powered solutions such as AI cloud storage and AI energy saving solutions continued to rise [13] - In North America, AI-enabled products like smart bird feeders recorded healthy growth [14] Company Strategy and Development Direction - The company continues to embrace AI, with smart devices equipped with AI capabilities accounting for 93.99% of total shipments [7] - A new AI Agent App is in global beta testing, aimed at developing a universal AI life assistant for users [8] - The company is focused on optimizing its expense structure while maintaining key investments in business development [6][17] Management's Comments on Operating Environment and Future Outlook - Management noted that the external environment remains volatile, with cautious customer demand due to macro uncertainties [4] - For Q4 2025, management anticipates a soft demand environment compared to the previous year, but remains optimistic about long-term growth driven by AI adoption [25][27] - The company aims to lower barriers for new users to adopt smart devices through the introduction of an AI assistant [26][37] Other Important Information - The platform had 1.62 million registered developers, a 23% year-over-year increase, with over 12,000 AI agents created [18][19] - The company is focused on maintaining a strong cash position, with a net cash balance above $1 billion [18] Q&A Session Summary Question: Business outlook for Q4 and 2026 customer demand - Management expects soft demand in Q4 due to global macroeconomic uncertainties but is optimistic about growth in 2026 driven by AI adoption [25][27] Question: Details on the AI home agent and its impact - The AI assistant is designed to help users with various home tasks, aiming to simplify the user experience and lower barriers for new users [32][36] Question: Recovery progress in overseas markets, especially North America - Recent tariff agreements provide stability for importers, and management anticipates positive impacts on demand for the next year [47] Question: Latest progress on AI technology and commercialization - AI capabilities are being integrated across all product categories, with significant breakthroughs in sectors like toys [49][50] Question: Reasons for the decline in smart solutions revenue and growth outlook - Management expects a better year in 2026 with less market turbulence and increased AI adoption across various sectors [55][56]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 reached approximately $82.5 million, marking a 1.1% year-over-year increase and the ninth consecutive quarter of growth [11][4] - Gross margin remained above 48%, with GAAP net margin expanding by more than 23.6 percentage points year-over-year to 18.2% [5][16] - Non-GAAP net margin reached 24.4%, supported by improved gross margin and expense efficiency [5][16] Business Line Data and Key Metrics Changes - PaaS business generated $59.2 million, a 2.4% year-over-year increase, with the number of premium customers reaching 280 [11][12] - SaaS and others business generated $11.5 million, a 15.4% year-over-year increase, driven by growth in cloud software products [12] - Revenue from smart solutions reached $11.8 million, with a focus on scalable high-value solutions [12][15] Market Data and Key Metrics Changes - In the China market, AI Toy showed healthy growth with over 50 customers launching products powered by Tuya [12] - In the European market, demand for AI-powered solutions continued to rise, with new industrial clients added in the energy and HVAC sectors [13] - In North America, AI-enabled products like smart bird feeders recorded healthy growth, validating the commercial potential of niche scenarios [14] Company Strategy and Development Direction - The company continues to embrace AI, with smart devices equipped with AI capabilities accounting for 93.99% of total shipments [8] - A new AI Agent App is in global beta testing, aimed at developing a universal AI life assistant for users [9] - The company is focused on optimizing product mix and operating efficiency while maintaining key investments in business development [5][16] Management's Comments on Operating Environment and Future Outlook - Management noted that the external environment remains volatile, with cautious customer demand due to macro uncertainties [4] - For Q4 2025, management anticipates a soft demand environment compared to the previous year, but remains optimistic about long-term growth driven by AI adoption [21][25] - The company believes AI will enhance user experience and lower barriers for new users, contributing to future growth [24][34] Other Important Information - Operating net cash flow grew to $30 million, a 25.7% increase year-over-year, with a net cash balance above $1 billion [16][17] - The platform had 1.62 million registered developers, a 23% year-over-year increase, indicating strong engagement in the developer ecosystem [17][18] Q&A Session Summary Question: Business outlook for Q4 and 2026 - Management expects soft demand in Q4 due to global macroeconomic uncertainties but is optimistic about long-term growth driven by AI adoption [21][25] Question: Details on the AI home agent and its impact - The AI assistant is designed to simplify user interactions with smart devices, aiming to lower barriers for new users and enhance overall user experience [30][34] Question: Recovery progress in overseas markets and AI commercialization - Management noted stable cost levels due to recent trade agreements and highlighted breakthroughs in AI applications across various sectors, including toys [41][46] Question: Reasons for decline in smart solutions revenue and growth outlook - Management anticipates a better year in 2026 with less market turbulence and expects AI features to become standard in new projects, driving growth [50][51]

Financial Data and Key Metrics Changes - Total revenue for Q3 FY2026 grew 4.4% year-over-year to $1.23 billion, exceeding guidance by $15 million [13] - Enterprise revenue increased by 6.1% year-over-year, accounting for 60% of total revenue, up 1 percentage point year-over-year [13] - Non-GAAP gross margin improved to 80%, up 117 basis points from the previous year, driven by cost optimization [14] - Non-GAAP income from operations grew 11% year-over-year to $507 million, exceeding guidance by $37 million [14] - Non-GAAP diluted net income per share increased to $1.52, $0.08 above guidance and $0.14 higher than the previous year [15] - Operating cash flow grew 30% year-over-year to $629 million, representing a margin of 51.2% [16] - Free cash flow margin increased to 50%, up 11 percentage points year-over-year [16] Business Line Data and Key Metrics Changes - AI Companion adoption surged more than four times year-over-year, indicating strong demand for AI-driven solutions [8] - Team Chat monthly active users rose 20% year-over-year, enhancing asynchronous work capabilities [8] - Workvivo logos grew nearly 70% year-over-year to 1,225, indicating strong performance in employee experience offerings [9] - Zoom Phone surpassed 10 million paid seats, marking significant growth in unified communications [9] Market Data and Key Metrics Changes - Americas revenue grew 5% year-over-year, EMEA grew 3%, and APAC grew 4% [14] - The number of enterprise customers contributing over $100,000 in trailing 12-month revenue grew by 9% year-over-year [13] Company Strategy and Development Direction - The company aims to evolve into an AI-first platform for work and customer experience, focusing on three priorities: enhancing core products with AI, driving growth of new AI products, and scaling AI-first customer experience [7] - The acquisition of BrightHire is part of the strategy to enhance collaboration and customer engagement through AI [10] - The company is committed to disciplined growth while investing in AI and maintaining strong profitability [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's durability and the growing value delivered to customers [7] - The company anticipates continued strength in customer experience and AI differentiation as key growth drivers [11] - Management expects revenue for Q4 FY2026 to be in the range of $1.23 billion to $1.235 billion, representing approximately 4.1% year-over-year growth [17] Other Important Information - Deferred revenue at the end of Q3 grew 5% year-over-year to $1.44 billion [15] - The board authorized an incremental $1 billion share repurchase, reflecting confidence in the company's financial position [18] Q&A Session Summary Question: How should we think about growth heading into next year? - Management indicated that enterprise will continue to be the predominant growth driver, with a focus on stabilization and product diversification [23][24] Question: Can you discuss the pressure on net dollar expansion and seat-based contraction? - Management noted that while there are some seat pressures, overall macro demand remains strong, and net dollar expansion is stabilizing [28] Question: What is the company's approach to M&A going forward? - Management stated that future M&A will be thoughtful and disciplined, focusing on small to medium-sized investments that align with strategic goals [34] Question: Can you elaborate on the growth sustainability of Zoom Phone and customer experience? - Management highlighted strong growth in Zoom Phone and customer experience, driven by AI integration and customer demand [40][41] Question: How is the company integrating with other productivity software? - Management confirmed strong integrations with major ecosystems like Google and Microsoft, and emphasized the importance of customer feedback in driving integration efforts [67] Question: Were there any one-time benefits to free cash flow this quarter? - Management clarified that improvements in the collection process contributed to free cash flow, but these changes are sustainable rather than one-time [73][74] Question: How does the BrightHire acquisition fit into the broader platform expansion strategy? - Management indicated that BrightHire aligns with the strategy to leverage AI in mission-critical business workflows, particularly in HR [83][107]