Zoom Communications Inc.

Strong Q1 performance; guidance beat - Revenue +5.5% YoY to $1.24B (or +4.6% constant currency), $14M above the high end of guidance. - Enterprise revenue +7.2% YoY to ~61% of total revenue (up 1pt YoY). - Non-GAAP profitability beat: Non-GAAP operating income $509M (+9% YoY); Non-GAAP operating margin 41.1%. - Surprising/good: growth was among Zoom’s best in recent years and clearly outperformed the high end of guidance.

AI monetization momentum (Workplace + CX) is a key growth engine - AI Companion paid MAUs +184% YoY in Q1, driven by early adoption of AI Companion 3.0. - My Notes reached >1.5M monthly active users (excluding trials) ~4 months after launch. - AI is showing pull-through into paid workplace/CX: paid AI contributed to 9 of top 10 ZCX deals, and 15 of top 20 wins included Zoom Workplace or Zoom Phone. - Opportunity: monetization is expanding beyond meeting summaries into workflows, agentic retrieval, and customer operations.

CX and Zoom Phone expansion: replacing competitors; more flexible billing models - Zoom is winning larger multiproduct platform deals, including competitive displacements (Eric cited displacements vs Teams/Cisco, and multiple CX wins including Chelsea FC, Caliber Collision, Renza). - Zoom Phone ARR grew mid-teens (per CEO remarks) and continues share-taking. - Business-model flexibility: ZCX is usage-based, with planned “autocon based” offering “very soon”; management expects the market to accept more flexible pricing aligned to customer needs. - Good: customers are choosing Zoom as a secure integrated multiproduct platform, often consolidating vendors and expanding over time.