Zoom Communications, Inc. Class A

Strong Q2 performance; Enterprise acceleration is the key driver - Total revenue +4.9% YoY to $1.28B (also +4.7% constant currency), $7M above the high end of guidance. - Enterprise revenue +7.8% YoY (strongest in 3 years) and now represents 62% of total revenue (+2 pts YoY). - Management attributes acceleration to three priorities: (1) elevating workplace with AI, (2) scaling an AI-first customer experience, (3) growth in new AI products—and emphasizes Zoom’s “system of action” positioning.

AI monetization momentum (good + surprising): rapid adoption signals future revenue streams - Workplace AI monthly licensed users +125% YoY; engagement expanding beyond summaries into active querying and building workflows. - AI monetization in Zoom CX: paid AI in 9 of top 10 CX deals; Zoom Virtual Agent (ZVA) customers +250% YoY. - New AI launches referenced: ZoomMate (agentic productivity/workflow/search) and expanded Workvivo AI offering (Workvivo HQ + Workvivo HQ Agent, plus an example customer win). - Opportunity signal: AI features are increasingly attached to multi-product deals, not just standalone pilots.

Financial efficiency and profitability: margins slightly down, but still strong - Non-GAAP gross margin: 79.1% (down from 79.8% YoY). - Non-GAAP operating income +1% YoY to $510M; operating margin 40.0% (down from 41.3% YoY). - CFO commentary suggests the modest margin softness is consistent with higher AI usage/spend in the quarter, while expecting optimization/continued delivery of long-term margin targets. - Positive takeaway: despite AI-related cost pressure, Zoom is still producing very strong margins and cash flow.