Zoom’s Q2 shows strong enterprise traction, net boosted by Anthropic stake

Zoom continued to show enterprise traction and AI adoption in its second quarter and the company's net earnings were boosted by its stake in Anthropic.

The company reported second quarter earnings that were well ahead of expectations. The company reported second quarter net income of $1.54 billion, or $5.15 a share, on revenue of $1.277 billion, up 4.9% from a year ago. The results were boosted due to gains on its Anthropic stake and other items. Non-GAAP earnings were $1.53 a share.

Wall Street was expecting Zoom to report non-GAAP earnings of 89 cents a share on revenue of $1.27 billion.

Zoom CEO Eric Yuan said the company is seeing strong demand in its enterprise business, which delivered revenue growth of 7.8%. "“Our AI-first Customer Experience portfolio continues to scale, delivering high-double-digit ARR expansion, driven in part by strong adoption of Zoom Virtual Agent, whose customer count increased 256% year over year. With innovations including ZoomMate, My Notes, AI Productivity Suite, ZVA Receptionist, and Workvivo HQ Agent, and acquisitions like Common Room and BrightHire, we are embedding AI into the flow of work across collaboration, customer experience, revenue orchestration, recruiting, and employee experience," said Yuan.

Key figures in the second quarter include:

• Zoom had 4,625 customers contributing more than $100,000 in 12 months trailing revenue at the end of the quarter.
• Workvivo surpassed $100 million in ARR in the quarter.
• Zoom Phone ARR grew in the teens.
• Online average monthly churn was 2.9%.
• Licensed monthly active users of AI features in Workplace were up 125% in the quarter compared to a year ago.
• Zoom ended the quarter with cash and equivalents of $7.2 billion.

As for the outlook, Zoom projected third quarter revenue of $1.275 billion and $1.28 billion with non-GAAP earnings between $1.46 a share to $1.48 a share.

For fiscal 2027, Zoom is projecting $5.085 billion and $5.095 billion in revenue with non-GAAP earnings between $6.08 a share and $6.12 a share.

Here's what Yuan had to say in prepared remarks.

• Yuan said the company's progress "reflects our success in bringing our AI-first system of action vision to life, helping customers reduce costs and create greater business value. That vision is grounded in Zoom Workplace, which we continue to enhance with AI.
• Across Workplace and our broader communications platform, AI is becoming increasingly embedded in how users work throughout the communication and collaboration lifecycle."
• "In Q2, Zoom CX ARR continued to grow at a high double digit year-over-year rate, and we set a record for the number of seven-figure ARR deals. AI continues to drive this momentum, with paid AI in nine of the top ten Zoom CX deals, showing growing demand for a system of action that connects automation, human agents, and intelligence."
• "Increasingly, customers are going all in on Zoom CX, combining our virtual agent and agent-assisted AI solutions to enable seamless transitions from automated self-service to human support."