Q4 2025 Zoom Communications Inc Earnings Call Transcript
Key Points
- Zoom Communications Inc (ZM) reported a 3% year-over-year revenue growth in Q4, surpassing their top-line guidance.
- The company saw a significant increase in the adoption of its AI capabilities, with Zoom AI Companion's monthly active users growing by 68% quarter over quarter.
- Zoom's enterprise revenue grew by 6% year over year, now constituting 60% of total revenue, indicating strong enterprise traction.
- The Contact Center achieved its largest ARR deal in history with a Fortune 100 US tech company, showcasing its ability to win large enterprise customers.
- Zoom's strategic partnerships, such as with Mitel and Amazon, are expanding its market reach and enhancing its platform's appeal.
- Despite revenue growth, the overall growth rate remains modest at 3%, with guidance for FY26 indicating only a slight increase.
- The company faces ongoing macroeconomic challenges and uncertainties, which could impact future growth.
- Zoom's online business continues to experience churn, although it has improved to a record low of 2.8% in Q4.
- The transition to AI-first initiatives involves significant investment, which may impact margins in the short term.
- There is a potential risk of increased competition in the AI space, as many vendors are pitching their AI capabilities to customers.
Recording in progress. I will now hand things over to Charles Eveslage, Head of Investor Relations. Charles, over to you.
Thank you, Kelsey. Hello, everyone, and welcome to Zoom's earnings video webinar for the fourth quarter and full fiscal year 2025. I'm joined today by Zoom's Founder and CEO, Eric Yuan; and Zoom CFO, Michelle Chang.
Our earnings release issued today after the market closed maybe downloaded from the investor relations page at [investorszoom.us]. Also on this page, you'll be able to find a copy of today's prepared remarks in 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 first quarter and full fiscal year 2026.
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