Zoom Video Communications Inc - Ordinary Shares - Class A

Strong Q1 beat + upgraded full-year guidance (good surprise) - Revenue +5.5% YoY to $1.24B (or +4.6% constant currency), $14M above the high end of guidance. - Enterprise revenue +7.2% YoY; 61% of total revenue (up 1 point YoY). - Non-GAAP gross margin 79.9% (+70 bps YoY) on cost optimization toward a long-term 80% target. - Non-GAAP operating income $509M (+9% YoY), above high end by $17M; non-GAAP op margin 41.1%. - Outlook upgrade (FY27): raises revenue to $5.08B–$5.09B (midpoint +4.4% YoY) and non-GAAP op income to $2.065B–$2.075B (midpoint ~40.7% op margin). - EPS (non-GAAP) FY27 now $5.96–$6.00 (midpoint increase), with free cash flow expected $1.7B–$1.74B.

AI-driven monetization is being treated as a core growth engine (opportunity) - AI Companion usage scaling: paid MAUs +184% YoY, driven by early adoption of AI Companion 3.0. - My Notes breakout: >1.5M monthly active users (excluding trials) just 4 months after launch. - Management claims AI is not just “summaries” but moving toward agentic workflows and a workflow layer (system of action) that supports monetization. - ZCX acceleration: AI is cited as a contributor—e.g., “paid AI” involved in most top ZCX deals (per Q&A), suggesting AI features may be reducing friction for adoption/pricing.

Customer expansion + durable enterprise signals (good) - Enterprise customer count growing: +8% YoY for customers contributing >$100k TTM, now 33% of total revenue. - Net dollar expansion (TTM) improved to 99% (modest but positive inflection). - RPO growth: +11% YoY to ~$4.3B, with noncurrent RPO +19% YoY, reflecting longer-duration multiproduct platform deals. - Enterprise wins show “platform displacement” narrative: top wins often include Zoom Workplace / Phone and increasingly AI-first communications.