Zoom Video Communications said Zoom Contact Center has passed the 500-customer mark in the second quarter as the company tries to expand past its core video collaboration tools. The company raised its fiscal year outlook based on enterprise demand.

The company reported second quarter net income of $182 million, or 59 cents a share, on revenue of $1.14 billion, up 3.6% from a year ago. Non-GAAP earnings were $1.34 a share. Wall Street was expecting non-GAAP earnings of $1.05 a share on revenue of $1.12 billion.

Zoom CEO Eric Yuan said the company saw enterprise strength in the second quarter and touted AI features including Zoom IQ Meeting Summary and Team Chat Compose and Intelligent Director. Zoom Virtual Agent and Zoom Contact Center are also seeing traction. Zoom also added that its Workvivo integration is on track. 

The contact center and customer experience space has been heating up as RingCentral and Five9 are making acquisitions and broadening their reach. RingCentral bought Hopin Events in a move to encroach on Zoom's core market.

Yuan said Zoom Contact Center is adding 90 new features and enhancements per quarter. "We look forward to adding additional products to this suite to expand our native CX capabilities and revenue streams."

Zoom is also expanding into the team software space and cited US Postal Service as a key customer win. Yuan said:

"More customers are getting Zoom Team Chat, driven by increased adoption of Zoom One and new features like Continuous Meeting Chat. We have two Fortune 15 companies, one major consulting firm, a global F&B brand and leading law firm using Zoom Team Chat as core means of text-based communications."

Zoom's second-quarter enterprise sales were $659.5 million, up 10% from a year ago. Online revenue, which is more small business focused, was $479.2 million, down 4.3% from a year ago. Zoom ended the quarter with 218,000 enterprise customers, up nearly 7% from a year ago. According to the company, 3,672 customers contributed more than $100,000 in trailing 12 months revenue.

As for the outlook, Zoom projected third-quarter revenue between $1.11 billion and $1.12 billion with non-GAAP earnings between $1.07 a share to $1.09 a share. For the fiscal year, Zoom projected revenue between $4.48 billion to $4.49 billion with non-GAAP earnings of $4.63 a share and $4.67 a share.