Zoom (ZM) Q3 FY2025 Earnings Breakdown

Key Highlights:

• Name Change: Zoom Video Communications, Inc. officially changed its name to Zoom Communications, Inc., reflecting its evolution beyond video conferencing.
• Positive Growth: Zoom reported positive revenue growth for the third quarter, with total revenue reaching $1.1775 billion, a 3.6% increase year-over-year.
• Enterprise Strength: Enterprise revenue demonstrated strong performance, growing 5.8% year-over-year to $698.9 million, indicating successful penetration into the larger business segment.
• AI Focus: Zoomtopia announcements emphasized AI integration, including the launch of AI Companion 2.0 and paid add-ons, aligning with the company's strategic focus on AI-powered solutions.
• Key Wins: Zoom Contact Center and Workvivo, a recent acquisition, secured significant deals, showcasing the strength of Zoom's integrated platform and expansion within global enterprises.
• Low Churn: Online monthly average churn reached an all-time low of 2.7%, reflecting high customer satisfaction and retention rates.
• Stock Buyback: Zoom's Board of Directors authorized an additional $1.2 billion stock buyback, bringing the total remaining authorization to $2.0 billion, demonstrating confidence in the company's future.