Revenue and Growth: Zoom reported Q4 total revenue of $1.184 billion, marking a 3% year-over-year growth, exceeding guidance by $4 million. Enterprise revenue grew approximately 6% year-over-year, now representing 60% of total revenue. For FY26, guidance suggests total revenue in the range of $4.785 billion to $4.795 billion, reflecting an expected growth of about 2.7% year-over-year.
AI Strategy and Customization: The company is transitioning into an AI-first work platform, with AI Companion usage increasing by 68% quarter-over-quarter. A new Custom AI Companion will be launched in April at a price point of $12 per seat, expected to enhance feature customization for businesses and generate additional revenue streams. There's optimism that AI features will enhance customer value, driving growth in enterprise accounts.
Cash Flow and Profitability: Zoom delivered a strong free cash flow of $416 million in Q4, growing 25% year-over-year, with margins expanding to 35.2%. The company has a robust cash position of approximately $7.8 billion and intends to utilize cash for potential share buybacks, having repurchased 4.3 million shares for $355 million in Q4.