Zoom Communications, Inc.

Hello, everyone, and welcome to Zoom's second 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 hand it over to Tom McCallum, head of investor relations.

Thank you, Matt. Hello, everyone, and welcome to Zoom's earnings video webinar for the second quarter of fiscal 2022. Joining me today will be Zoom's founder and CEO, Eric Yuan, and Zoom 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 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 third quarter and full fiscal year 2022. Zoom's expectations regarding financial and business trends, Zoom's growth strategy and business aspirations to drive evolution on multiple fronts as organizations and people reimagine work, communication, and collaboration, and Zoom being well-positioned to be successful as a platform. 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 the 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 and quarterly reports on Form 10-Q. Zoom assumes no obligation to update any forward-looking statements we may make on today's webinar. In addition, as you all know, we announced our intent to acquire 5.9 in July. Clearly, we're excited about joining forces with 5.9. But please note that we will not be discussing or addressing questions regarding the pending transaction this time as we are in the process of regulatory review. And with that, let me turn the discussion over to Eric.

Thank you, Tom. And thank you all. And welcome to everyone joining us on today's webinar. I want to start by thanking our customers and partners for their trust and loyalty, which led to our continuous strong revenue growth alongside remarkable profitability and a free cash flow. We also want to thank our hardworking employees for their dedication to delivering happiness to our customers and partners. I have been humbled by the stories of the whole finance professionals have leveraged Zoom to reimagine the way they work. Specifically, I'd like to thank Charlie Munger of Berkshire Hathaway for his remarks about how Zoom has added so much convenience to his life. We are so delighted to count Charlie as a happy user. And I nominated myself to be Charlie's personal Zoom tech support if he ever needs it. In Q2, we also achieved several milestones, setting the foundation for us to thrive as a platform. In July, we launched Zoom apps, which brings over 50 apps right into the Zoom meeting experience. And this is just the beginning. The beauty of our platform is it allows our ecosystem of developers to add even more functionality by building apps where workflows are integrated with meeting interactions. This is a win-win because better integrations will boost our customer productivity and afford our developers exposure to our large user base. The Zoom Apps Fund, which has already invested in over a dozen startups in our Zoom Apps and SDK ecosystem, further aligns us with the developers, enabling them to focus more on innovation. We are also excited to have launched Zoom events in July. Zoom events is an easy yet a powerful solution to produce and host the company and the public events. It acts as a layer above our existing Zoom video webinars and Zoom meetings products. Zoomtopia will be virtual on Zoom events in only two weeks, and we hope to see all of you there. In Q2, we saw several large customers upsells. We were very happy to expand with a leading tech firm who increased their meetings licenses over six fold to 95,000. and with a global financial services customer who added over 63,000 Zoom phone licenses, making them our new largest customer. Both wins were displacement of legacy solutions that Zoom beat in terms of reliability, simplicity, and integration. And let me recognize a few very big wins for the quarter. I want to welcome NEC Corporation to the Zoom family. Based out of Japan, NEC is a leader in the integration of IT and network technologies behind their slogan, orchestrating a brighter world. In order to enhance the productivity, collaboration and happiness of their global workforce, NEC deployed approximately 110,000 Zoom meetings licensee. I also want to welcome CIGIT technology to the Zoom family. CIGIT is a global mass data storage infrastructure leader, innovating world-class precision engineered data storage and measurement solutions with a focus on sustainable partnerships. Seagate recently decided to modernize and integrate their global communications infrastructure with over 14,000 Zoom meetings licenses and over 17,000 Zoom phone licenses. Next is a Zoom phone upsell. In Q2 of last year, we welcomed ExxonMobil, which develops and applies next-generation technologies to help safely and responsibly meet the world's growing need for energy and chemical products to the Zoom family. They began as a Zoom video conferencing customer to enable their teams to collaborate globally. We are very grateful to have seen our partnership evolve over the past year and excited that ExxonMobil has recently decided to add a Zoom phone to further enhance the user experience for their global workforce, leveraging a communications platform that is very easy to deploy and manage. In addition to these great customer wins, we also closed another strategic channel partnership with Telkomsel, the largest cellular operator in Indonesia, which is the world's fourth largest country by population. Health Council understand and want to support their 170 million subscribers need for seamless and reliable virtual meetings to thrive in the digital workplace area. We will be leveraging the power of Zoom's developer platform and ISV positive program to deliver a fully integrated solution where there are CloudX offerings for the enterprise segment and Zoom native apps for the consumer segment. The collaboration between TelcomCell and Zoom will bring in communication to the next level by combining Zoom's strong capabilities and feature-rich platform with TelcomCell's best quality network and localized interface, together creating a powerful tool to improve customer productivity and collaboration. Thank you, ANC, Seagate, ExxonMobil, and Telecomcell. I love you all. Enterprise is one of the digital platforms that combine meetings, phone, events, office technology, and developer solutions in a way that is simple, reliable, and frictionless. This fundamental truth underpins our leadership position in video conferencing and will help to drive further growth in Zoom phone, and Zoom Rooms as we expand our platform and addressable market in the hybrid world. Today, we're very fortunate to be a leading global brand with over half a million customers having more than 10 employees. Our internal innovation engine is very strong and boosted by our growing Zoom apps developer ecosystem and acquisitions such as CACs. that will strengthen our position in AI transmission and translation. As organizations and people reimagine work, communications and collaboration, we are faced with a once-in-a-lifetime opportunity to drive this evolution in multiple forms. Thanks again to the hard work of our over 5,700 employees and the trust of our loyal customers. We are positioned very well to be successful as a platform embracing and enabling hybrid world. I'm very excited about the future. The journey has only begun. And with that, let me pass it over to Kelly. Thank you.