Zoom Communications, Inc.

Hello again, everyone, and welcome to Zoom's Q1 FY23 earnings release. As a reminder, today's earnings release is being recorded. And now I will hand things over to Tom McCallum, head investor of relations. Tom, take it away.

Thank you, Kelsey. Hello, everyone, and welcome to Zoom's earnings video webinar for the first quarter of Q1 fiscal 2023. I'm joined today by 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 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 full fiscal year 2023, our expectations regarding financial and business trends, impacts from macroeconomic developments and the Russia-Ukraine war, our market position, opportunities, growth strategy, and business aspirations, and product initiatives and the expected benefits of such initiatives. 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'll 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 statement we may make on today's webinar. And with that, let me turn the discussion over to Eric.

Thank you, Tom. Thank you, everyone, for joining us today. As we continue to ask you on the strategic pillars I shared with you last quarter, we are very grateful for the support and trust we have received from our customers and investors. Let me start with some recent news, then touch on our new product launches, and finally discuss some exciting customer wins before handing it over to Kylie. Just last week, we closed our acquisition of Solve, which we believe will strengthen our capabilities around conversational AI and accelerate the adoption of our contact center product. The nature of the customer experience is undergoing a fundamental transformation as enterprises increasingly look to engage their customers in more exceptional, personalized, and effortless ways. We recognize this shift and started solving a key laser focus on providing the very best conversational technology and empowering customer support leaders to deliver better experiences. We believe SOVI's technology will broaden our contact center offering with the scalable self-service and AI capabilities that truly enable fast and personalized customer resolutions, improve agent productivity, and valuable insights. We are very excited to join forces with SOVI and help our growing number of contacts and customers set new standards for customer service. A key part of our strategy is to enable more and more business workflows within our platform. And I'm super excited about our recent launches of Zoom Whiteboard and Zoom IQ for sales. Zoom Whiteboard is arming teams with the power of continuous collaboration in an easy-to-use solution that provides a virtual space to collaborate before, during, and after a meeting. And to help sales teams reach their full potential, we have launched Zoom IT for Sales, a conversational AI solution that analyzes customer interactions to surface key insights, actions, and content from sales meetings. These new product launches encapsulate our strategy. to move into adjacent workflows, both horizontally and vertically, in order to ensure our customers are getting more and more out of our platform. Now, moving on to customer awareness, we are very happy to share that Humana, one of the nation's leading health and wellbeing companies, has expanded their relationship from Zoom meetings to include approximately 24,000 zoom phones to integrate a voice and video in their communications platform thank you amana i also want to thank avs budget group a leading global provider of mobility solutions operating three of the most recognized brands in their industry so it is budget and zip car for except for expanding from being a zoo meetings and a zoom rooms customer to being a broader ucas customer they continue to stay seamlessly connected having added approximately 10 000 zoom phones across many of the global offices and car rental locations and in addition to zoom meeting and zoom phone our ucas solution includes a very robust persistent team chat product that further drives collaboration in a seamless and integrated way. Our chat product is used by a number of large enterprises, including a Fortune 10 company with over 130,000 users. I also want to thank Lumio, a preeminent leader in residential solar and home experience. Lumio is a happy Zoom meetings customer who recently enabled their 4,000 employees to enjoy the use of Zoom chat. Lumio chose Zoom chat for its ease of deployment and to enhance communication collaboration across their team. The next movements are very special because they demonstrated the strength of our platform offering and how the contact center is a critical component of the platform. I want to thank Team Health, the leading physician practice in the U.S., for their trust in Zoom. Their innovation-focused team is committed to delivering the best quality experience possible for their employees, healthcare providers, and customers. Alongstanding our Zoom meetings, Zoom webinar, and Zoom rooms customer, Team Health recently expanded their service with thousands of Zoom phone licenses across their organization. And their journey did not end there. Given their seamless experience across our platform, they saw potential value in adding our Zoom contact center. to modernize internal IT support services across their tens of thousands of employees and healthcare affiliates. And the last, but certainly not least, I want to thank Franklin Covey, a leading provider of leadership, individual effectiveness, and business execution training and assessment services. Franklin Covey started as a Zoom meetings and a Zoom events customer In Q1, recognizing Zoom's expansion into the contact center and improving UCaaS capabilities, they decided to deploy Zoom Phone together with Zoom Contact Center. They saw them as going hand in hand to support many of their external call center needs in the U.S., including voice and video channels, as well as skill-based routing. We look forward to continuing our journey with Franklin COVID by delivering additional capabilities as we enhance and expand our context and offering. Thank you, Ximena, Avis, Lumio, Team Health, and Franklin COVID. I'm so grateful to have such a great group of customers. We hear every day from our customers about just how much impact Zoom's unified communication platform has had on how they communicate internally and externally. Recently, we commissioned Forest Consulting to quantify Zoom's business value and provide a framework for organizations looking to understand their unified communications investment. The study indicates that Zoom's unified communication platform could provide a 261% return on investment over three years for a composite organization in their model with a payback in just less than six months. This did not come as a surprise to us or our customers. who see and feel the value of Zoom every day, but it does set a healthy bar for what organizations can strive to accomplish with our flexible, scalable, and growing suite of communications solutions. And as companies look to empower hybrid workforces, Zoom can drive further efficiency gains through our robust Zoom Rooms offering. And there are intangible benefits as well. A new study from Gardner found that employees with more flexibility in terms of work style and location felt more connected to their organization's culture. We have found this to be true at Zoom and are working to help our customers realize similar goals by enabling productivity and belonging across their teams, whether they be in person, remote, or hybrid. As always, let me also thank our global Zoom team, customers, partners, and investors for their great trust and support. And with that, a positive word to Kelly. Thank you.