Zoom Communications, Inc.

Thank you for those that have joined us so far. We're just going to give it a minute and we'll get started soon. Thank you. Okay. Hello, everyone, and welcome to Zoom's Q4 FY24 earnings webinar. As a reminder, today's webinar is being recorded. And now I would like to hand things over to Tom McCallum, head of investor relations.

Thank you, David. Hello, everyone, and welcome to Zoom's earnings video webinar for the fourth quarter and full fiscal year 2024. 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.us. 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 first quarter and full year 2025. our expectations regarding financial and business trends, impacts from the macro economic environment, our market position, opportunities, go-to market initiatives, 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 financial 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. And with that, let me just turn the discussion over to Eric. Thank you, Tom.

Thank you, everyone, for joining us today. In FY24, we made a tremendous amount of progress towards our mission of one platform delivering limitless human connection. As generative AI began to take the world by storm, we listened carefully to customers in order to deliver AI that can best serve their needs. with innovation that is responsible, empowering, and built from ground up in a way that permits and unifies our entire platform. Zoom AI Companion, our generative AI assistant, empowers customers and employees with enhanced productivity, team effectiveness, and skills. Since its launch only five months ago, we expanded the AI companion to six Zoom products, all included at no additional cost to license the users. But we are far from done. Our future roadmap to AI is 100% guided by driving customer value. We are hard at work developing new AI capabilities to help customers achieve their unique business objectives. And we will have more to share in a month at Enterprise Connect. We hope to see you all there. Our expanding Connect Center Suite is a unified AI-first solution that offers tremendous value to companies of all sizes seeking to strengthen customer relationships and deliver better outcomes. The base product includes AI companion and our newly launched tiered pricing allows customers to add specialized CS capabilities such as AI expert assist, workforce management, quality management, virtual agent, and omni-channel support. Boasted by its expanding features, our Carnegie Center suite is beginning to win in head-to-head competition with legacy incumbents. Beyond that, it is competing on its own merits with customers completely new to Zoom, broadening the funnel to the Zoom platform. As Zoom becomes a full workplace solution, we are seeing customers migrate from other chat products onto Zoom Team Chat. Very excited. Over the past year, Zoom Team Chat usage has increased 130% across our paid accounts. And our migration tool designed to simplify the transition has seen a 4x increase in downloads in the last six months. Customers across industries are moving to Zoom team chat, including a global supply chain leader who has migrated over 1,200 users, a major law firm who has migrated 1,500 users, and also a financial payments leader who has moved over 2,000 users. Customers appreciated the improved user experiences and enhanced collaboration driven by our Zoom team chat product, as well as the cost efficiencies realized by consolidating their communications and collaboration solutions onto Zoom. Last April, we acquired WorkVivo and its integration into the Zoom interface has strengthened its market position. In Q4, we opposite our Fortune 10 company and the longstanding Zoom customer on Workvivo, making it Workvivo's biggest customer to date. And on the flip side, we also saw a global tech who started as a work with a customer, adopted the broader Zoom platform. As you can see, adding new products, both organically and inorganically, creates a virtuous cycle, allowing us to sell more product into a larger base. We were very pleased to see Workvivo recognized as a leader by Magical Quadrant in its first report on intranet-packaged solutions. Similarly, Zoom Revenue Accelerator was recognized as a strong performer in its first year of being covered. An amazing testament to its value as a powerful AI-enabled tool drawing value to sales teams. FY24 was a difficult year from a macro perspective, and we faced those challenges head on. We became more disciplined and focused while continuing to prioritize those opportunities. As a result, we are in a much better position than we were one year ago. Our platform mode is deeper. Our context and offering is more robust. and our go-to-market teams are primed with defining goals and sharpen expertise to drive growth and empower our customers. Now let's talk about some of our amazing customers. First, I'm so excited to welcome Broadcom, a global infrastructure technology leader to the Zoom family. Recognizing the simplicity and ease of use of our expanding platform, they opted for the Zoom One Enterprise Bundle to modernize the way they communicate and collaborate. Let me also thank Diageo, a leading global marriage company for doubling down on Zoom. Seeing strong value from their existing meetings, phone, and rooms deployment, in Q4, they expanded to Zoom Target Center and Zoom Virtual Agent. Let me also thank Community Financial Credit Union, a full-service financial cooperative, for investing in our broader Zoom One platform. They have chosen to modernize member engagement with the Zoom Accounting Center. Community financial for the Zoom because of our one platform, video-first approach to solving all their communication needs. Zoom's integrations with key banking solutions through our APIs and partnerships were core to their decision-making process. Finally, let me thank Canvera, the world's FX payments leader. Zoom Phone was the foundation of their Zoom engagement. And from there, they adopted the wider Zoom One platform in less than two years. Seeing the benefits of the tight integration of our products and the pain by AI companion, they recently began to deeply leverage Zoom team chat in order to streamline the pre, during, and post-meeting communication all within the Zoom platform. Everything we do here is rooted in our culture of delivering happiness. This is why our employees, this is why the customer employees, this is why employees in modern IT departments are our biggest champions. And of course, happy employees are the most productive, so choosing Zoom becomes a win for everyone. We are laser focused on our mission and could not be more optimistic about our future. The best is yet to come. And with that, a positive word to Kelly. Thank you.