Zoom Communications, Inc.

Hello, everyone, and welcome to Zoom's Q1 FY25 earnings webinar. As a reminder, today's webinar is being recorded, and I will now hand things over to Charles Eveslage, incoming head of investor relations. Charles, over to you.

Thank you, Kelsey. Hello, everyone, and welcome to Zoom's earnings video webinar for the first quarter of fiscal year 2025. 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. It 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 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 full fiscal year 2025, our expectations regarding financial and business trends, impacts from the macroeconomic 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 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. And with that, let me turn the discussion over to Eric.

Thank you, Charles. Thank you everyone for joining us today. Our rapid innovation over the years has taken us far beyond video conferencing. Every step of the way has been guided by our mission to solve customer problems and enable greater productivity. In the process, we have very deliberately created a communication and collaboration powerhouse with AI infused natively across the platform. Time and time again, we are recognized as a leader by Gartner, G2, TrustRadius, and many others. And we are so pleased that in March, first company added Zoom to their price leaders list of the world's most innovative companies of 2024. Further validating our dedication to providing our customers with a high quality open collaboration platform powered by AI that just works. In March, we announced the Zoom Workplace, our AI-powered collaboration platform designed to help our customers streamline communications, improve productivity, increase employee engagement, and optimize in-person time. Within the launch of Zoom Workplace, a new enhancement and capabilities like multi-speaker view, document collaboration, AI-powered portrait lighting, along with upcoming features and products like Ask AI Component, which will work across the platform to help employees make the most of their time. The Workplace launch also boosts Zoom Phone, TeamChat, Events, and Wireboard with many more AI-compiling capabilities to help make customers more productive. One of the core pillars of Zoom Workplace is optimizing in-person time and embracing flexible work. Our species portfolio has expanded from Zoom rooms into integrated adjacencies like workplace reservation, visitor management, and digital signage. As of the end of Q1, the cumulative number of Zoom rooms licenses purchased was over 2 million. And in the last three months, we provisioned over 100,000 desks in workspace reservations to support in-office work. Leading financial services and legal firms such as Capital One and Cudi use Zoom Rooms to support their globally dispersed hybrid workforce. And others like Flex and Beata Home Healthcare have expanded from Zoom Rooms to workspace reservation in order to optimize in-office time. Zoom Workplace is also designed to increase employee engagement through the integration of Workvivo into our platform. In Q1, we landed a major telco customer on Workvivo, who bought approximately 100,000 seats. And Workvivo was named Meta's only preferred migration partner for its customers as it retires Workplace for Meta. Our success in employee experience represents an important beachhead for us in upselling customers on the full suite. Zoom Workplace exists alongside and is designed to seamlessly integrate with our business services, including Zoom events, revenue accelerator, contact center, virtual agent, and others. Zoom Contact Center launched only two years ago is ready for prime time. We now support PCI compliance, opening the door for customers that have payment processing in their workflows. We also received FEDREP moderate authorization for our essentials and premium skills, allowing U.S. government agencies and entities doing business with them to leverage Zoom Contact Center. We have launched all key social channels, including Facebook Messenger, WhatsApp, and Gmail, and have enabled direct transfers between Connect Center agents and other departments via Zoom phone, helping to further bridge the employee and customer experiences. As a result of how far the product has come, we have seen strong growth in the number of deals where we have beat or displaced a Gartner top four C-class player. We have also strengthened our channel partnerships, leading to a significant increase in our channel wins and ability to compete for larger deals. ASPs are heading north, buoyed by the popularity of our higher tier packages that allow agents and managers to lean further into AI with AI expert assist, workforce management, quality management, and more. Now, let me recognize some of our amazing customers. First, let me thank Expedia, who needs no introduction, for becoming a Lighthouse Zoom revenue accelerator customer in the quarter. Leaning heavily into our AI products to drive revenue. A power user of Zoom phone for years, they wanted to better automate workflows, coach sellers, and drive efficiencies. We partnered with them on an initial quadruple-digit Zoom revenue accelerator deal, which includes working directly with our team to improve and tailor the product based on their business model and industry-specific use case. We are so excited about this AI-centric partnership to drive value for Expedia and continuously improve our platform based on customer feedback. Let me also thank Major League Baseball. A year ago, MLB made a highly strategic decision to adopt Zoom Connect Center. In Q1, they chose to expand our successful partnership by integrating Zoom quality management into their Zoom Connect Center deployment. This enhancement further strengthens their fan engagement strategy and streamline business operations. MMB was particularly impressed by the interactive features, enhanced accessibility, and the ability of Zoom quality management to support virtual engagement. Let me also thank CenterStone, a nonprofit health system specializing in mental health and substance use disorder treatments for individuals, families, and veterans who are doubling down on Zoom. Seeing strong value from their existing Zoom meetings, Zoom phone, and Rooms deployment, in Q1, they expanded Zoom phone and added Zoom Connect Center in order to leverage AI to provide better care and Zoom team chat in order to streamline communications in all from a single platform. I'm also very excited to share that we greatly expanded our footprint with a leading global financial services firm who doubled their Zoom phone sales to over 100,000. We're so pleased to see more customers adopting our Zoom workplace and business services product in order to reap the benefit of our modern natively integrated AI-powered technologies. And with that, I'll pass it over to Kelly. Thank you.