Zoom Communications delivered better-than-expected first quarter earnings as the company is seeing strong demand for Zoom Customer Experience, Zoom Revenue Accelerator and Workivo.
The company reported first quarter earnings of 81 cents a share on revenue of $1.17 billion, up 2.9% from a year ago. Non-GAAP earnings in the first quarter were $1.43 a share. Wall Street was looking for non-GAAP earnings of $1.31 a share on revenue of $1.17 billion.
Eric Yuan, Zoom CEO, said "we saw continued momentum in Zoom Customer Experience, Zoom Revenue Accelerator, and Workvivo as customers look to elevate CX, reinvigorate sales, and strengthen culture." He added that the company appeared to be landing accounts in an uncertain economy. Enterprise revenue in the first quarter was $704.7 million, up 5.9% from a year ago. Online revenue, which is small business accounts, had revenue of $470 million, down 1.2%.
Zoom evolves AI Companion with agentic AI features
Zoom said it had 4,192 customers contributing more than $100,000 in trailing 12 months revenue, up 8% from a year ago. Online average monthly churn was 2.8%.
As for the outlook, Zoom projected second quarter revenue between $1.19 billion and $1.2 billion with non-GAAP earnings of $1.36 a share to $1.37 a share. For fiscal 2026, Zoom projected revenue between $4.8 billion to $4.81 billion with non-GAAP revenue of $5.56 a share to $5.59 a share.
Yuan in prepared remarks said:
- "Adoption of Zoom AI Companion continues to grow, with monthly active users up nearly 40% quarter over quarter."
- "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 2000 trial customers, who are especially excited about features like Bring Your Own Dictionary and Index, meeting summary templates, and our Jira integration."
- "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."
- "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."
- "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."
