Zoom Video Communications, which competes with Cisco and Microsoft, has revealed its achievements thanks to AI strategy and innovation.
Zoom Video Communications is targeting fiscal 2025 revenue of $4.63 billion — $4.64 billion, compared with $4.61 billion – $4.62 billion forecast earlier.
Zoom Video Communications reported second-quarter revenue of $1.16 billion (up 2 percent), driven by demand for its AI-powered collaboration tools deployed in hybrid work models.
Zoom’s enterprise revenue grew 4 percent and represented 59 percent of total revenue. The number of enterprise customers at the end of Q2 was approximately 191,600.
Online average monthly churn reached 2.9 percent, down from 3.2 percent in Q2 of FY 2024.
Zoom has 3,933 customers (up 7 percent) contributing more than $100,000 in trailing 12-month revenue. These customers represented 31 percent of revenue, up from 29 percent in Q2 of FY 2024.
Zoom’s Americas revenue grew 3 percent, while EMEA was flat, and APAC declined by 2 percent during April-June 2024.
AI innovation
Zoom Contact Center, the company’s AI-powered, omnichannel platform that provides businesses personalized responses for their customers, secured several high-profile clients, including its largest single-order deal to date in the second quarter.
Recently, Zoom announced the launch of a new Zoom Webinar offering that can host up to 1 million attendees.
Earlier this month, Zoom launched Zoom Docs as part of its strategy of expanding the platform across more touch points in the productivity life cycle.
Zoom Docs helps effortlessly transform information from Zoom Meetings into actionable documents, tasks, and knowledge bases.
In Q2, Zoom Docs signed its largest deal or a new Contact Center customer who choose top-tier Elite CX package coupled with Zoom Phone.
“Of our top 10 Contact Center wins, all represented displacements of major Contact Center vendors and 40 percent were migrations of our first-generation cloud-based solutions,” Zoom CEO said.
Most Contact Center wins represent either existing Zoom Workplace customers who add on Contact Center or new customers to Zoom who buy Contact Center in conjunction with Zoom Workplace.
Zoom AI Companion is enabled on over 1.2 million accounts. Zoom AI Companion will move beyond enhancing skills to simplifying workday providing contextual insights, and performing tasks. Zoom will share more about its AI strategy at Zoomtopia in October.
CUSTOMERS
TIAA, a provider of secure retirements and outcome-focused investment solutions, upgraded to Zoom Workplace Enterprise Plus and added Zoom Contact Center and Quality Management in order to further enhance the employee and customer experience.
Prime Inc., one of the largest trucking and freight delivery companies in North America, chose to elevate the experience with Zoom Contact Center and Quality Management. Prime also added Zoom Workplace as well as Webinar and Rooms to support the collaboration and working needs of their offices. Zoom added Prime through its channel partners.
Lyra Health, a leader in workforce mental health benefits, has integrated Zoom’s Video SDK Toolkit into their platform.
Lyra has migrated to Zoom, bringing video technology directly into their applications, exemplifying Zoom’s developer-focused approach.
Workvivo has reached 69 customers with over $100,000 in ARR, roughly doubling year over year. Zoom surpassed 1,100 Zoom Contact Center customers representing more than 100 percent year-over-year growth.
Baburajan Kizhakedath
