Zoom Video Communications Inc - Ordinary Shares - Class A

Solid Financial Performance: In Q1 FY '26, Zoom reported total revenue of $1.175 billion, representing a 3% year-over-year growth. This exceeded guidance by $8 million. The enterprise revenue grew approximately 6% year-over-year and now constitutes 60% of total revenue, indicating a stable and growing core business.

AI Innovations Driving Growth: Zoom's adoption of AI Companion saw a significant increase, with monthly active users up nearly 40% quarter-over-quarter. The introduction of custom AI features is expected to enhance customer productivity, positioning Zoom to monetize AI services effectively, with early enthusiasm from Global 2000 trial customers.

Cautious Outlook for Enterprise: Zoom expressed a more conservative outlook for its Enterprise business due to elongating deal cycles and increased scrutiny on deal terms from larger customers. This stems from broader economic uncertainties, although there was still no notable change in demand for Online services.