Zoom Communications, Inc.

Hello and welcome to Zoom's Q1 FY26 earnings release webinar. As a reminder, today's webinar is being recorded. I will now hand things over to Charles Eveslage, Head of Investor Relations. Charles, over to you.

Thank you, Megan. Hello, everyone, and welcome to Zoom's earnings video webinar for the first quarter of fiscal year 2026. I'm joined today by Zoom's founder and CEO, Eric Yuan, and Zoom CFO, Michelle Chang. Our earnings 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. These measures should not be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP. During this call, we will make forward-looking statements, including statements regarding our financial outlook for the second quarter and full fiscal year 2026, our expectations regarding financial and business trends, impacts from the macroeconomic environment, our market position, stock repurchase program opportunities, go-to-market initiatives, growth strategy and business aspirations, and product initiatives, including future product and feature releases 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 of the SEC, including our annual report on Form 10-K and quarterly reports of 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, who will be debuting his new custom avatar for Zoom Eclipse.

Over to you, Eric. Thank you, Charles. Thank you, everyone, for joining us. Today, I'm using our new custom avatars for Zoom clips with AI Companion to share my part of the earnings report. I'm proud to be among the first ever CEOs to use an avatar in an earnings call. It's just one example of how Zoom is pushing the boundaries of collaboration and communication. At the same time, we know trust and security are essential. We take AI generated content seriously and have built in strong safeguards to prevent misuse, protect user identities, and ensure avatars are used responsibly. Now let's get into it. We delivered another solid quarter showcasing the power of our platform and innovation engine in helping customers navigate short-term challenges with greater efficiency while positioning them for long-term success. Through AI-powered innovation, Zoom is redefining modern work and delivering major cost savings and productivity gains for our customers. We had a tremendous quarter of innovation and launched several agentic AI innovations that advance our vision of intelligent productivity. Zoom Tasks help surface, manage, and complete tasks across Zoom Workplace to get more done, bringing tasks together in a centralized management tab. Our new Calendar Manager allows you to ask AI Companion to schedule meetings on your behalf. Soon, it will be able to optimize scheduling by suggesting time slots, resolving conflicts, managing meeting updates, and proactively blocking focus time. We also made custom AI Companion, Zoom Workplace for frontline, and Zoom Workplace for clinicians generally available in Q1. Adoption of Zoom AI Companion continues to grow with monthly active users up nearly 40% quarter over quarter. Just last week, Raymond James shared in a press release how they are rolling out AI Companion meeting summaries firm-wide. Zoom's cutting-edge AI capabilities will enable financial advisors to offload time-consuming administrative work allowing them to dedicate more time to what truly matters, nurturing client relationships and delivering strategic financial guidance. AI companion usage is quickly expanding far beyond summarizing your meetings to helping you answer questions, schedule and prepare for meetings, search through information, build content, and catch up, freeing you up to focus on higher impact work. While we continue providing tremendous AI value at no additional cost to users with a paid license, we're now monetizing through Custom AI Companion. Though only weeks in market, we're seeing strong enthusiasm from several global 2,000 trial customers who are especially excited about features like bring your own dictionary and index, meeting summary templates, and our JIRA integration. We're also rolling out custom AI companion internally to allow Zoomies to get immediate answers from our custom knowledge bases and empower them across a range of skills specific to their function. These milestones in our agentic vision exemplify how we're helping customers stay ahead through continuous innovation focused on delivering real business value. Zoom Workplace continues to drive value for customers and drive customers to adopt other solutions within our growing platform. In Q1, the 2024 NBA champion Boston Celtics doubled down on Zoom. As longtime Zoom meetings users, the Celtics appreciated Zoom's unique balance between simplicity and rapid innovation and chose to upgrade to Zoom Workplace Enterprise Plus, including Zoom Phone. And the game didn't end there. In overtime, the Celtics decided to modernize their employee intranet with a custom branded Workvivo employee experience solution designed just for their organization. And we also landed a leading financial institution who selected the Zoom collaboration experience platform in an over $1 million ARR deal. This allowed them to simplify their tech stack and reduce costs by moving away from Teams and other third party solutions. And beyond costs, they bought into our better together vision that unites the customer experience and collaboration experience under one AI-first platform. And discussions are well underway to upsell them to the Zoom customer experience platform. Zoom Phone continues to perform strongly With revenue growing in the mid-teens, it is also opening new markets for Zoom by integrating seamlessly with other productivity suites and delivering a best-in-class AI first voice experience. The adoption of Zoom phone integration with Microsoft Teams has grown significantly, showing how we can meet customers where they are and add value within their existing tech stack. We continue to drive encouraging results across our high-growth products that are positioned to target lines of business. Our customer experience offering has rapidly evolved since its launch just over three years ago, transforming how customer-facing teams engage with their end users. In Q1, the number of Zoom Contact Center customers grew 65% year over year, and Zoom Virtual Agent landed its largest deal to date as an upsell to Contact Center. Altogether, Zoom customer experience is a triple-digit million ARR business, growing in high double digits. In Q1, we were pleased to see Mimecast, a leading cybersecurity company, transforming the way businesses manage and secure human risk, expand their partnership with Zoom. Already Zoom workplace and phone users, Mimecast valued the simplicity and interoperability of our unified platform. They've now chosen the Zoom Contact Center Elite Bundle with quality management to further modernize how they communicate and collaborate with their customers. Zoom Revenue Accelerator, our AI-first sales enablement and conversational intelligence solution, continues to deliver strong results for revenue teams. In Q1, licenses grew 72% year over year, reflecting growing traction. We landed Goosehead Insurance, a major US insurance distributor with over 2,500 producing insurance agents. They started as a Zoom phone customer in 2023. In Q1, they decided to add Zoom Revenue Accelerator in order to further empower their large team of insurance sales reps to dial into additional deal-focused AI features to drive higher win rates and faster deal cycles. Our employee experience platform, Workvivo, transforms the way HR departments engage their employee bases and build culture. Total Workvivo customer count in Q1 grew 106% year over year, an acceleration from the past two quarters. This strong performance was driven in part by our Meta partnership. Last month, we welcomed Kim Storen as our new Chief Marketing Officer. With her extensive enterprise experience and proven track record of success, Kim will help us amplify Zoom's compelling value proposition and brand story to drive deeper resonance with customers. We continue to see strong momentum as we expand our channel. Just yesterday, we announced a new strategic partnership with Bell Canada. In addition, we completed a major transformation of our channel systems and processes in Q1, making it easier for partners to scale their businesses with us. Our channel investments drove some amazing wins in Q1. Doc's Dermatology Group, a leading U.S. dermatology roll-up, came to us through a trusted channel partner, going all-in on the Zoom platform as a brand new customer. Docs chose the Zoom Contact Center Elite Package for the ability to manage the complexities of their appointment management, billing, and inbound patient requests through our simple intuitive interfaces and our team's ability to rapidly innovate a powerful integration to one of their key tools. and recognizing the importance of uniting their employee and patient experiences under one seamlessly integrated modern platform they also chose zoom phone along with zoom workplace as we look ahead we continue to double down on driving value for customers as they navigate an uncertain macro environment our ai first strategy positions us to help customers stay ahead as technology evolves while our platform approach delivers compelling tco advantages now Let me hand it over to Michelle to take us through the financial results.