Zoom Communications, Inc.

Hello, everyone, and welcome to Zoom's first quarter fiscal year 2022 earnings release. I'd like to remind everyone that this call is being recorded. At this time, I'd like to turn it over to Tom McCallum, head of investor relations.

Thank you, Matt. Hello, everyone, and welcome to Zoom's earnings video webinar for the first quarter of fiscal 2022. Joining me today will be Zoom's founder and CEO, Eric Yuan, and Zoom's CFO, Kelly Steckelberg. Our earnings press release was issued today after the market closed and may be downloaded from the investor relations page at investors.zoom.com. Also on this page, you'll be able to find a copy of today's prepared remarks and a slide deck with financial highlights that, along with our earnings press release, include a reconciliation of GAAP to non-GAAP financial results. During this call, we will make forward-looking statements, including statements regarding our financial outlook for the second quarter and the full fiscal year 2022. Zoom's growth strategy, business aspirations to lead the evolution to hybrid work, and the continued impact of the COVID-19 pandemic on our business. These statements are only predictions that are based on what we believe today and actual results may differ materially. These forward-looking statements are subject to risks and other factors that could affect our performance and financial results, which we discuss in detail in our filings with the SEC, including our annual report on Form 10-K, as well as the current report on Form 8-K we file with the SEC today. Zoom assumes no obligation to update any forward-looking statements that we may make on today's webinar. And with that, let me turn it over to Eric.

Thank you, Tom, and welcome everyone joining us on today's webinar. I want to start by thanking our customers for their commitment to and trust in Zoom. which drew a strong start to our fiscal year with revenue growing 191% year-over-year, as well as strong profitability and a free cash flow. I also wanted to recognize our more than 5,000 employees. Their dedication to our customers' happiness is an incredible advantage and creates a positive feedback loop that keeps our customers coming back and our employees eager to meet their diverse needs. Our ability to help our customers by increasing their productivity, promoting their employees' happiness and connections to each other, and reducing their travel-related carbon footprint gives our work a great meaning and makes Zoom a great place to work. Our company culture is strong, and we are more motivated than ever. Let me also thank all of you, our investors, for your trust and support. So we are very grateful to our employees, our customers, partners, and our investors. Thank you. As parts of the world reopen, a few things are clear. Many customers I talk to are looking to create hybrid solutions, and they seek to cautiously reopen some offices. And second, each industry, company, and individual varies in their optimal working model. Zoom is here to help each customer calibrate their future working model in their own way. Many companies are redesigning the workplace to enhance the hybrid work experience. So to meet this need, we announced Zoom Rooms features such as Smart Gallery, which puts in room and remote participant in equal footing. Virtual receptionist, participant accounting, and environmental sensors. We have begun to deliver on our platform strategy. In February, we launched our video SDK. In April, we announced our $100 million Zoom apps fund to further build our app ecosystem. Zoom apps is designed to enhance users, to enable users to bring their favorite apps directly into the Zoom experience in a way that inspires collaboration, boosts efficiency, creates healthier habits, and generates much more fun. We will also launch Zoom events, our events platform, which will be focused on our enterprise customers and support an array of virtual event use cases. In a recent survey we conducted, 80% of US respondents agreed that all interactions will continue to have a virtual element post-pandemic. And that figure was even higher in many of the other markets we surveyed. The hybrid model is here to stay, and Zoom events will be an excellent solution for our customers who are looking to create and host company events with a versatile and powerful solution. We are very happy to announce that we closed our largest deal ever in terms of ARR with a leading global financial services firm, that selected Zoom meetings to deploy for over 90,000 hosts. That is only one of the large deals to be closed this quarter. Let me recognize three more industry-leading companies that have increased their commitment to Zoom. First, I want to thank Kimberly Clark, whose trusted brands are an indispensable part of life for people in more than 175 countries for expanding the relationship with Zoom by adding approximately 25,000 Zoom phone licenses. As an existing Zoom meetings and video webinar customer, Kimberly Clark saw the same reliability, value, and innovation in Zoom phone. I also wanted to recognize our partner, British Telecom for advocating for Zoom in the decision-making process at Kimberly Clark. Next, thank you Target Corporation, which serves at more than 1,900 stores and online at Target.com with a mission to help families discover the joy of everyday life for their commitment to Zoom. We're very excited to help Target take their communications initiatives to the next level by expanding their Zoom platform solution while unifying their internal and external communications on our technology. As a longstanding Zoom meetings customer, we truly appreciate their trust and faith in Zoom as a platform and partner. And finally, I want to thank Denso Japan's largest and the world's second largest automotive parts company and a leading company in the Toyota Group. They first joined the Zoom family last year, but last quarter they decided to significantly expand their usage of Zoom meetings and Zoom video webinars for internal and external communications. Zoom now connects 47,000 employees across offices, factories, and homes. Dental side, the introduction of Zoom has contributed greatly to our ability to create a work environment that drives faster decision making. Kimberly Clark, Target, and Dental, thank you. I love you. We are off to a great start in fiscal 2022. I look forward to operating you on our hybrid workspace and platform evolution throughout the year and at Zoomtopia, which will be held on September 13th and 14th in a virtual format. Before handing it over to Kelly, I want to share a quick update. As you know, demand for Zoom phone has been amazing, and I'm very excited to announce our new device category. the Zoom Phone Appliance. I've invited Graham to tell you more. Thank you.