Zoom Communications, Inc.

Hello and welcome to Zoom's Q1 FY2027 Earnings Release Webinar. I will now hand things over to Charles Eveslage, Head of Investor Relations. Charles, over to you.

Thank you, Catherine. Hello, everyone, and welcome to Zoom's Earnings Webinar for the first quarter of fiscal year 2027. I'm joined today by Zoom's founder and CEO, Eric Yuan, and Zoom's 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 2027, 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 future 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 our 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, who is giving his prepared remarks via Zoom custom avatar.

Thank you, Charles. FY27 is off to a good start, continuing the momentum from FY26. Q1 revenue grew 5.5%, exceeding the high end of our guidance and among our best growth rates in recent years. This progress underscores the increasing value of our system of action for modern work. To help accelerate that vision, we appointed Russell Dicker as Chief Product Officer. Russell brings more than 25 years of product leadership experience across Microsoft, Google, and Amazon, including leading Microsoft Teams product and data science teams. He will help drive our AI-first roadmap as we connect conversations, workflows, and outcomes through our system of action. The foundation of our system of action is Zoom Workplace, where context is created across the full meetings and work-life cycle. With AI Companion, that context becomes actionable, helping customers drive productivity, automate follow-through, and turn everyday collaboration into measurable business value. In Q1, AI companion usage continued to scale, with paid MAUs growing 184% year-over-year, driven by strong early adoption of AI companion 3.0 capabilities. MyNotes has quickly emerged as a breakout product, surpassing 1.5 million monthly active users, excluding trial users just four months after launch. It gives users a personal AI note-taker that captures context across Zoom in-person and third-party meetings, helping them stay present while turning conversations into organized takeaways, action items, and follow-through. Altogether, AI Companion 3.0 brings agentic retrieval across Zoom and connected work sources, extending AI Companion beyond meeting summaries into a broader workflow layer that turns conversations into action. This AI momentum is also reinforcing the strength of our core business. In Q1, 15 of our top 20 wins included Zoom Workplace or Zoom Phone as customers increasingly choose Zoom for secure AI-first communications that improve productivity, reduce complexity, and turn conversations into action. Zoom Workplace continues to win on product quality, platform breadth, and security. In Q1, a major government contractor came back to Zoom for the full suite of Zoom workplace phone events and webinars in a seven-figure ARR deal, displacing Teams and Cisco Calling. The customer chose Zoom to meet stringent government security requirements and unlock insights from live communications data to support its broader AI workflows. Zoom Phone continued to grow ARR in the mid-teens, taking share as customers' modernized voice on our reliable, flexible platform that integrates with their existing workflows and extends AI into everyday communications. A great example of this is Baptist Health in Jacksonville, Florida, who in Q1 chose Zoom Phone to support 16,000 workers across more than 200 points of care in a seven-figure ARR deal. Baptist Health selected Zoom Phone because of its reliability, hybrid flexibility, and industry-specific integrations. Taken together, these wins show a consistent pattern. Customers are choosing Zoom as a secure integrated multi-product platform, often displacing multiple vendors and expanding over time as AI becomes embedded in their workflows. This reinforces our confidence in Zoom's ability to turn conversations into action and drive durable platform expansion. Our progress elevating Workplace with AI sets the foundation for our second priority, driving growth in new AI revenue streams. As customers experience the value of AI Companion in Zoom Workplace, Custom AI Companion is the natural next step that takes them from conversation to action by unlocking agentic search, customization, and agentic workflows. Raymond James is a strong example of this expansion motion. After adopting AI Companion for meeting summaries, they expanded in Q1 to Custom AI Companion across approximately 10,000 seats, giving wealth advisors more tailored AI workflows and customized summaries with the security, compliance, and centralized oversight required in financial services. Custom AI Companion also wins on its ability to support agentic workflows. In Q1, as part of MongoDB's upgrade to Zoom Workplace Enterprise+, Zoom Contact Center, and ZVA, they chose Custom AI Companion to translate live conversations into completed actions across their IT ticketing, customer relationship management, and other third-party systems. Just as Custom AI Companion creates an AI monetization path within Zoom Workplace, ZVA Receptionist represents an important new monetization layer for Zoom phones. ZVA receptionist turns Zoom phone into an AI-powered front door for the business, helping customers qualify callers, capture context, answer common questions, and route requests to the right person or team. In Q1, we saw it deliver real business value across a variety of customers, including an industry association, improving lead capture and lowering costs, an insurance firm automating after-hours and overflow calls, and a law firm managing high call volume by filtering unsupported requests so staff can focus on actionable cases. We also added AI innovation to employee experience with the launch of SIR by WorkVivo, expanding from employee communications into AI-powered people intelligence and creating another path for AI monetization. SEER helps leaders listen to employee feedback, measure engagement, understand sentiment with AI, act through built-in communication tools, and track progress in real time. Beyond these application-level AI monetization layers, Zoom AI Services opens our core AI technologies to customers and developers. Launched in March, Zoom AI Services extends our speech recognition advantage, honed across countless daily meetings, and ranked among the top models on the Hugging Face Open ASR leaderboard. Its Scribe API gives customers and developers high-quality, flexible speech-to-text across platforms, with early adoption from BPOs like InflectionCX, validating the real-world value of our ASR technology. We are also extending AI into high-value vertical workflows. BrightHire, which brings conversational AI to recruiting and hiring, had a strong quarter, with continued momentum in tech and other sectors. In Q1, BrightHire landed Figma on its core product to help support consistent, objective, and calibrated hiring decisions, and expanded with HubSpot from its core interview intelligence product into BrightHire Screen, its AI interviewer, to support go-to market hiring. Taken together, these examples show how we are extending Zoom AI beyond core collaboration into a broader monetization engine across workplace, AI services, and vertical workflows. The same combination of AI context and workflow orchestration is also driving our third priority, scaling AI first customer experience. The same AI-first platform that powers Zoom Workplace and Phone also extends to customer engagement. This is a true point of differentiation. Zoom is one of the few scaled companies with a native platform that bridges UC and CX. By connecting collaboration, voice, contact center, virtual agents, expert assist, and more, we help customers carry context across teams, channels, and systems, moving from reactive service to faster, more intelligent resolution and measurable business value. To further bolster the suite, in March, we introduced CX Insights, a new SKU within ZCX that gives business and CX leaders a natural language way to analyze CX data across contact center, workforce management, quality management, and virtual agents. We also announced AI Expert Assist 3.0, customer workflow orchestration, advanced quality management for virtual agents, and new workforce management capabilities to help organizations deliver better outcomes with greater efficiency. Zoom customer experience continued to accelerate in Q1 with high double-digit growth driven by paid AI in nine of the top 10 ZCX deals, showing that customers are increasingly turning to Zoom to automate service, empower agents, and improve resolution. Zoom customer experience is emerging as a key growth driver and represents the strategic expansion of our platform into mission-critical customer operations. We are increasingly winning competitive displacements and larger deals as customers look to consolidate contact center and UC systems with a unified AI workflow and analytics platform that works across all channels. Let me bring this to life with a couple of customer wins. Showcasing the strength of our full system of action, we landed Chelsea FC, one of the world's most recognized football clubs. They selected Zoom Phone, ZCC Elite, and ZVA Chat to modernize fan engagement across touchpoints. Zoom will help the club deliver faster, more personalized experiences while creating a connected data foundation to improve insight, efficiency, and long-term growth. Also in Q1, Caliber Collision, a leading automobile repair provider, chose to deploy Zoom Phone with ZCC Elite in order to streamline their customer experience across more than 1,800 repair centers and their central contact center, eliminate the cold call experience for customers, and provide unified CX analytics for end-to-end visibility. We also saw a strong full CX platform win in Japan with Renza, who selected Zoom Virtual Agent, Agentless Dialer, and ZCC Elite to modernize high-volume customer interactions. They chose Zoom for the flexibility and automation capabilities of the platform and are using Zoom Virtual Agent in a differentiated way for outbound engagement, including pre-confirmation calls tied to electricity and gas connections, which helps free teams for higher-value sales activity. Taken together, our progress across our three priorities gives us confidence in the opportunity ahead. As customers increasingly adopt Zoom as an AI-powered system of action, we are excited to turn that momentum into durable growth and long-term value. Michelle will now take us through our Q1 financial results. Michelle?