Zoom Communications reported strong second quarter results and CEO Eric Yuan said the company is seeing customers broaden their AI usage.
The company reported second quarter net income was $358.6 million, or $1.16 a share, on revenue of $1.217 billion, up 4.7% from a year ago. Non-GAAP earnings were $1.53 a share.
Wall Street was expecting Zoom to report second quarter earnings of $1.38 a share on revenue of $1.2 billion.
Yuan said:
"AI Companion Monthly Active Users have grown over four times year over year, with millions using our AI to boost business value throughout the meeting lifecycle and beyond. AI adoption now extends well beyond meeting summaries, with strong momentum in meeting prep and post-meeting task management, call summaries for Zoom Phone, and AI-first meeting integration and content generation capabilities for Zoom Docs. This progress is just the beginning and we look forward to sharing more AI innovations at Zoomtopia next month."
By the numbers:
- Zoom ended the second quarter with 4,274 customers contributing more than $100,000 in trailing 12 months revenue.
- Online average churn was 2.9% for the quarter.
- Enterprise revenue was $730.7 million, up 7% from a year ago. Online revenue, typically smaller businesses, delivered second quarter revenue of $486.6 million, up 1.4% from a year ago.
As for the outlook, Zoom said third quarter revenue will be between $1.21 billion and $1.215 billion with non-GAAP earnings between $1.42 a share and $1.44 a share. For fiscal 2026, Zoom projected revenue between $4.825 billion and $4.835 billion with non-GAAP earnings of $5.81 a share and $5.84 a share.
