Okay, good afternoon, everyone. Hello again, I'm Tyler Radke. I co-head the software sector here at Citi, and I think this is the fourth presentation of the afternoon, third or fourth, but welcome to day one of the conference. I feel we're especially privileged to have Kelly making the stop here-
Thank you
... at the Citi conference on her way out of Zoom. But I'm sure we'll be seeing you pop up somewhere exciting next.
Thank you.
So, Kelly, really appreciate you being here. I know you've come to our conference a number of years in the past. Maybe we could just start off on the big news, and you know, you announced, you're gonna be stepping down-
Yeah
... at, I think the end of the year. Just give us sort of your thought process and how investors should sort of frame the news in the context of-
Yeah
... of everything going on.
Yeah. So, first of all, I've had an amazing experience at Zoom. I've been at the company almost seven years. So to give you perspective, when I started, there were about 600 employees and $150 million of revenue. You know, today we're sitting at about 8,000 employees and $4.5 billion of revenue. So it has been an amazing experience. Very, very difficult decision to leave. I hope you all feel confident that based on our Q2 results, it has nothing to do with the state of the business.
In fact, like about joking with somebody earlier, like, I stayed through some of the really, really hard parts you know, and now I feel like there's a lot of momentum, but it's really more about I wanna have one more big adventure, and in my career journey, I probably have time for one more and felt like now was the time, but if I was gonna do it again,
I was only gonna do it at a company that I thought could even come anywhere near close to the experience I've had at Zoom, and hopefully I found that, so you know, we'll see. I am committed to staying through the Q3 earnings call, though, to ensure that we have as smooth of a transition as possible.
The company has hired, I think, the best CFO recruiter out there to look for a successor, so that's well underway. And yeah, I'm sure by making it public... This is an amazing job. I said, once you make it public, you're gonna have people come out of the woodwork, and people are coming to me, like saying, "Who's recruiting for your successor?" So.
Right.
Yeah, there's lots of great people out there-
Right
... that would love to have this job.
Yeah. No, I can imagine, and well, we'll definitely miss you, but I think, we're very excited to see where-
Thank you
... where you'll land.
Thank you.
Just coming back to the business, and I think everyone here is a user or a customer of Zoom. I know we certainly are at Citi. Can you just remind investors, though, how to think about the growth profile today from Zoom?
Yeah.
What are the key products that are driving growth? How should we just sort of think about the underlying growth opportunity at Zoom?
So yeah. So as a reminder, today we have two segments of our business: we have online, and we have direct, and the direct segment of business today is approximately 60, and online is about 40%.
Online, you know, was a tremendous growth driver during the pandemic and has come down since then, and in fact, this year we're pleased that online is going to be about 40-ish, so the goal is, of course, to get that segment returning to growth, but we spent a lot of time over the last couple of years focusing on stabilizing the business, improving the retention rates, which we announced in Q2 were at the lowest point ever of 2.9%, so very happy about that.
Yeah, that means the growth is being driven by our enterprise segment, which that segment is, you know, that means a sales rep or a channel partner has touched that customer. And that growth is primarily being driven by the emergence of some of our newer products, including Phone, Contact Center, and Workvivo. Workvivo had a very strong Q2. Part of that was driven by the partnership announcement with Meta that they were end-of-lifing their Workplace product.
That gave us an opportunity to go win those customers, which they've done very effectively, which has been great to see. That's what the momentum from enterprise is gonna continue to be driven by the core of the new products.
Got it, got it. Okay, and I think this quarter kind of marked the first true kind of re-acceleration-
Yeah
... in growth-
Yeah
... growth we've seen.
Yeah.
Obviously, a ways off from the, you know, hyper growth you
Yes
... you had years ago.
Yeah.
How should we sort of think about normalized growth at Zoom? I mean, where do you sort of aspire to get back to?
Mm.
If you wanna make some prognostications on how far this business will go under your successor, feel free, but
Commit somebody to the, in the future, but yes, so as for those of you, as a reminder, we did indicate, and we're able to execute to the fact that Q2 would be the low point from a year-over-year growth perspective, and the guidance, you know, implies re-acceleration from Q3 onwards,
and you know, we're not giving FY 2026 guidance or even beyond that, but certainly everyone in the company aspires to get us back to double-digit growth, like that's we would all love for that to be the case, that will take some time, given where we are, for sure, but that would be everyone's desire, I mean, the number one priority at Zoom is to re-accelerate top-line growth.
Mm-hmm. Yeah. And as you think about the levers to do so, we talked a little bit about Phone and Workvivo, Contact Center, what do you think kind of the biggest drivers of that, delta from where we are, call it, low to mid-single digits, to that double-digit top line? Is it just, hey, core Meetings growth has to be better, or is it, you know, Contact Center really takes off? Give us-
Yeah
... what are the biggest-
Yeah
... drivers of that.
So I think the products are in different stages of maturity.
Mm-hmm.
Right, which is also something to consider. So, Phone has been in our portfolio the longest. You know, we've disclosed in the past it's greater than 11% of revenue, so it has a lot of momentum already going there. What's great about Phone is it is actually kind of a gateway into Contact Center as well.
And the reason that we even created a Contact Center product was because especially our Phone customers were asking for it. Contact Center is a much newer product, but we've seen a lot of positive growth in terms of features and functionality. So if we talk about Q2, for example, in Q2, our top 10 deals were all external-facing Contact Centers.
When we first launched the product a couple years ago, it was mostly internal, like IT help desk or HR teams, because we didn't have all the features and functionality that were needed. But now, we, you know, we have native integration, obviously, with voice, with video, with chat. We also integrate with socials. We have email. We are PCI compliant, which is the ability to take a credit card safely, which is really key, of course, if you're using your Contact Center for any kind of sales.
And of those top 10 deals in Q2, six of them were legacy on-prem takeaways. Four of them were takeaways from what you would think of as the more modern cloud player. So I think that shows you that Contact Center is now really coming into its own in terms of being recognized.
I mean, it is the most modern Contact Center solution out there. It's the only one that exists today that was really built with AI at its core from the beginning. That's also reflected in the fact that we now have three pricing tiers. When we launched Contact Center, we had one pricing tier, $69 per seat per month, which is, you know, highly disruptive. Now, we have $69.99 and $149, and $149 includes Zoom AI Agent Assist, which has AI capabilities built into it.
One of them including the ability for a rep to summarize a call very quickly afterwards, rather than having to type up all its notes. But I think what that reflects is this product now is ready to really compete against the legacy on-prem and the cloud providers, and not only compete, but win. And so that, I think, will start to drive a lot more momentum there. Workvivo is very similar.
The Meta partnership has really provided a lot of momentum, and that pipeline that's being driven just from that source will last for a couple more quarters, so that momentum should continue. And what I think is really exciting about that is the majority of the customers that were won through that partnership in Q2 were new to Zoom. So these are customers that are using a different-
Mm.
platform, a collaboration platform other than Zoom, but now we have the opportunity for... As a reminder, Workvivo is a very different persona, typical user. It is really meant and designed for frontline workers. It's a, it's like a digital heartbeat of company. It's a communication platform. It's similar to like, what you would expect to see, like a social feed, but it's not necessarily .
I mean, it works for knowledge workers that are sitting in front of their PC all day, but it was really initially designed to reach those workers that are not in front of a computer, that they're on their mobile device. So this is how they're getting news, they're getting shout-outs. For example, one of the largest customers is an international airline. So if you think about, like, ramp workers, right?
Mm.
They're not sitting in front of their computer, but they're on their phone, and that's how they're getting news about the company. And that is great for Zoom, because it's our ability to reach a whole different persona, excuse me, than we do with our typical collaboration platform.
Gotcha, gotcha. Yeah, no, that, that's interesting, and I know Workvivo was a big highlight this past quarter. Maybe just frame on the Meta and the Workplace partnership. Like, what is the total number of customers up for grabs? And, you know, I guess, are you competing with other companies for those?
Mm.
Like, just give us a sense. It sounds like a couple quarters of opportunity.
It's definitely a couple quarters of opportunity. I don't think that the total opportunity has been disclosed.
Mm.
But, we are competing, but I would say we are the leading competitor in that space.
Mm.
And the fact that Meta is referring them to us, of course, they're not giving them to us, we have to earn them-
Mm-hmm
... but is really helping being the preferred partner-
Gotcha
- in that transition.
Gotcha.
Yeah.
And a lot of those are net new logos.
Absolutely, net new logos-
Yeah
to Zoom.
Gotcha.
Which is great. Great, great, great.
Gotcha, gotcha. Okay, that's, that's, that's interesting. And, as, as you think about the, the contact center market, you know, kind of hearing the success that you're having with the, the modern cloud Contact Center, sort of displacements is encouraging. I guess we've heard from some other contact center vendors about, you know, AI, and there's, there's obviously a lot of risk or-
Yeah
... perceived risk around, agent counts going down over time. How do you... As sort of the newcomer to this space, right?
Yeah.
You kind of have a fresh look of it.
Yeah.
How do you sort of shake out in terms of that P times Q debate? You know, are you seeing any signs of contact agent seats going down?
Yeah
... in customers you're working with?
Yeah. So I guess a couple of things. First of all, we are in the fortunate situation that we are the newcomers, as you said, and we're not sitting here trying to defend a large existing installed base. And, and so when prospects come to us or customers come to us, we want to understand what are their objectives and how can we support them in that? And we have not only our Zoom Contact Center, which is priced on a per-seat basis, but we have Zoom Virtual Agent-
Mm
... which sits alongside of it. It can be sold either together or on its own, and it is priced on a per-capacity basis, so it's based on the amount of queries that come to it. I really believe that AI, in general, is just gonna continue to augment and improve the efficiency of most humans, not going to replace it. However, we've seen Zoom Virtual Agent be very, very effective when we have deployed it.
We deployed it at Zoom and for our online, so these are, you know, our smaller customers, but it was able to handle 90% of that call volume, so it was very, very effective. We are also using it, like my team's using it for customers that have queries around their resale certificates, for example, and it handles, like, 70% of that call volume. So it can be very effective in certain situations.
Mm-hmm.
That's where I think understanding what the customer's objectives are, and then finding the right tool to meet that capability is what we're trying to do.
Mm-hmm.
Today, Zoom Virtual Agent, compared to Contact Center, is a much lower percentage of our sales. It just is, but it is an opportunity, I think, for the future.
Okay. Okay, got it. And just zooming out a little bit, as you look at the competitive landscape, there's obviously been some announcements from Microsoft entering the CCaaS market. How do you sort of feel that, you know, just the overall competitive landscape looks? Are you, you know, seeing any change in-
Yeah
... in win rates or-
Yeah
... anything on that front?
You know, we compete very well. We talked about, you know, legacy. I think it's very difficult for those legacy on-prem vendors to do much innovation at all right now, especially around AI, so I think that Zoom has a very clear competitive advantage. And then, when you look at us compared to the other cloud providers, we, you know, the things that we hear back from our customers is they love its simplicity, its ease of use.
We've won against others in the cloud space because our ease of implementation, rather than having to spend hundreds of thousands of dollars of professional services fees, they can do the implementation and the programming themselves. That's a really great differentiator. And then, again, the total cost of ownership.
Even our top tier at $149 is two-thirds of the average price in this space, and so that is a clear differentiator. Plus, reliability. They're running on the Zoom backbone, which has been proven time and time again to be very resilient and reliable, and all of that adds up to a very clear competitive differentiation. I mean, you know, we go up against Microsoft every day. We align very well, and we partner very well with Microsoft. We also have a great opportunity against them, so I think-
Mm-hmm
... and it's gonna continue to play forward. I think AI being front and center for Zoom, and we can talk more about this-
Yeah
... but the federated approach that we're taking, the fact that we don't charge for most AI functionality, it's included for our customers for free, is gonna continue to be a big differentiator for us.
Yeah. Yeah, no, and I definitely do wanna talk about AI. It's always topical. But-
Yeah
... just as we sorta think about the enterprise and online segments, I remember a couple years ago, maybe it was three years ago, at some of the analyst days, we showed sort of, you know, some slides that, you know, framed the overall market as still being very under-penetrated in terms of, you know, million-dollar meetings, customers out of, I don't know, the Fortune two thousand. Now that we're a couple years past that, how do you sort of think about the new logo opportunity and, like, that enterprise expansion? It sounds like a lot of this-
Yeah
... is gonna be driven by cross-sell.
Yeah.
You do have, you know, I think 200,000 enterprise customers, which is a lot.
Yeah.
How much-
Yeah
... remaining new logos is there, and how much kind of cross-sell opportunity is there?
Yeah, I think that's the beauty of Contact Center. We saw it in Phone, but now we're seeing, continuing to see it with Contact Center and Workvivo, which is, every time you have a product that reaches to a different persona, you have the opportunity to bring in new logos.
Mm-hmm.
That is really, really helpful for the long-term growth of the platform because then, once they're in your Zoom family, right, you have the opportunity to continue to upsell them. I think the new logo expansion is gonna, just like the growth, is gonna come from more the new products than from core meetings.
Mm-hmm. Okay. Okay, got it. And then similar question on online. You talked about how obviously the business is stable today, which is obviously better than declining-
Yes
... but you have aspirations to return that-
Yeah
... to growth. So on one hand, I think your churn rates were really record low-
Yeah
... this quarter.
Yeah.
So it seems like that's going really well. So is really the difference to get to that growth coming from the new business side, and how do you sorta think about accelerating the new business side of online?
Yeah. Yeah, so that's exactly right. We announced that churn in Q2 was 2.9%, which is the lowest that we've ever reported, and that is, you know, due to ongoing improvements in the platform, in the way that we interact with our customers, the, the buy flow, as well as if you go through the cancellation flow, when it prompts you and gives you opportunities, for retention, potentially. So ongoing growth from here will continue to come from, you know, potential improvement in the free-to-paid conversion.
That's where AI, Zoom AI, 'cause it's running, our online customers, they get a free trial of it, but it's only 30 days. The free online customers, they get a free 30-day trial, so after that, if they wanna continue, you know, they have to upgrade and pay. So there's an opportunity there.
There's continued expansion in the market in general. We continue to look for opportunities, expansions with currencies, with payment types. That's been very successful for us in the past, and then, just looking for other opportunities to expand the portfolio itself. Obviously, we have organic products that do very well, including Meetings, Scheduler, Whiteboard, Phone, but Contact Center, for example, is probably never gonna lend itself to being sold online.
It's not the customer profile, and it's not a sales cycle that is simple enough generally to be done online, so this is an area we have also thought about inorganically. What are the other areas that, you know, small business owners, what else do they use in their day-to-day life? What are other potential productivity tools, marketing tools that they use, and thinking about, is there a way to potentially expand it that way?
Yeah. And then as we shift to the AI strategy, which we hinted at a little bit earlier, can you just frame it for investors what your AI strategy is? Is it more of a means to sort of accelerate top of funnel and conversion, or do you see opportunity over time to ultimately charge and monetize kinda separate AI SKUs?
Yeah. So Zoom AI Companion is included at no additional cost for our paying customers. We announced on the Q2 call, we have about one point 2 million accounts that have activated. That's not individual customers, that is accounts. So an account could be Citibank, or an account could be, you know, an individual sole proprietor, and that was up from seven hundred thousand accounts in Q1, so we're continuing to see tremendous growth there.
And the way we think about it is the features that exist today, which the most popular one is meeting summaries, which are really great. It can start to take action items now, it can do a summary for you. And then there's many other features that extend across the platform. But this is really about the democratization of AI and letting everybody have access to it.
And again, especially at renewal, in renewal discussions with our customers, it's really becoming one of the central topics when they compare to $30 a month from some of our competitors. Per user, $30 per month per user. It's a lot. So there's that. Now, as I mentioned, we do have premium features in Contact Center where we charge for, and I think over time, what you'll start to see is potentially more premium features that also get charged for. A great example of that could be, we've been very public.
We don't use any customer data for training our models, but if Citi had data that it wanted to be leveraged for its own benefit, that could be potentially, like, set up as a separate environment. So it starts to learn your acronyms, the way that you all talk about it, what's the tone? And that could be very beneficial for Citi itself, but of course, not for anybody else's use, and so that could be a premium product, for example, we could offer.
Okay. Got it. And as we think about margins, I guess one question as it relates to AI. I mean, you have been public about talking about some of the GPU costs that are sort of powering some of these AI offerings. How do you sort of think about the monetization and payback period on AI? And then, you know, as you think about re-accelerating the business-
Yeah
... how do you think about maintaining, you know, a healthy level, which is a very, you know, healthy level of margins?
Yeah. So again, the number one priority is returning to top-line growth and, you know, investing organically and potentially inorganically, but you're focused on prioritizing organic investments to drive that. So that means AI is certainly top of the priority list. That's GPUs. That's why you've seen our gross margin come down a hundred basis points this year, but it's also AI engineers, so R&D is up a little bit year over year. It's also sales capacity. It's our channel, investing in our channel strategy-
Mm
... is a really important growth driver for the future. Both external programs, we just hired a new leader, and internal processes and systems. Like, those are the top-level priorities and areas of investment for Zoom, and then being very thoughtful and disciplined around all other areas. If you look at G&A, for example, it's down year over year as a percentage of revenue. We don't break it down in this much detail, but marketing's also down year over year as a percentage of revenue.
So just being really, really thoughtful and disciplined about prioritizing what's important and deprioritizing the rest. We don't guide, but internally, we do use the Rule of 40 as a framework, just because it's a really easy concept for everybody in the company to understand.
You know, to the extent that we can accelerate top-line growth, that means we can invest more to do that. But while we're in this stage, we wanna be very thoughtful about the trade-off there and not having, you know, spend get ahead of where our growth trajectory is.
Right. Right, got it. Speaking of the financials and, you know, capital allocation, you have quite a lot of cash on-
Yeah
... on the balance sheet. And I know this has been a common question, but how do you sort of think about, you know, the M&A environment? I mean, I know there was the attempt to buy Five9 years ago. You seem to be, you know, having a lot of success with Contact Center now. So I guess as we think about, you know, the magnitude of capital outlay for a deal, how are you sort of framing that for investors? And then secondly, what categories are compelling? You talked about how attracting new users and new personas is critical.
Yeah.
What would be an example-
Yeah
... of kind of that.
Yeah
... new user?
So we do have $7.5 billion of cash on the balance sheet. We have a $1.5 billion buyback that's authorized. And we executed, you know, four hundred and fifty million-ish, again, 430 million or something like that, through the end of Q2 against that, and we were able to offset all, a little more than the dilution in Q2, a little bit under in Q1. So, you know, certainly focusing on that. In terms of M&A opportunities, you know, what we've done very successfully in the past are tech tuck-ins.
We've done four acquisitions to date. Two were really primarily around talent, and two were around tech. You know, one of them being Workvivo, and that's worked very, very well to date. You know, we do really appreciate the flexibility this cash gives us if we were to find something bigger, but we have a very high bar around the product and what it brings to our customers. We also look at culture in terms of an indicator of how successful that integration would be, and then, of course, valuation, which, you know, goes up and down almost-
Mm
... daily in terms of what the possibilities are. You know, in terms of areas that are of interest to us, you know, we've looked, and we continue to look at things that extend the platform. You know, our platform has gotten very broad, but you can continue to see opportunities, I think, for more in the productivity suite area, potentially. We've also looked at opportunities to verticalize.
Mm-hmm.
Healthcare and education, very specifically, have been strong areas for us, strong areas of growth for us, and maybe we could go a little deeper in those areas. And I mentioned online. That's been an area-
Mm
... we've also been exploring. So we continue to look, but hold a very high bar. And I certainly understand that some investors have concern around this. Some investors are very bullish around this. I think it's probably helpful to understand that, you know, Eric is really thoughtful about building a business for the long term, and he is a true visionary who thinks about:
How do we continue to serve our customers best, and what does our platform need to look like for that? And that's why he wants both the flexibility, but also would never want investors to be surprised if he were to do something transformative.
Right. Right. And on a point around the capital returns, I mean, business is generating a lot of cash, and obviously growth is come down quite a bit from-
Mm
... from the high. How do you think about, you know, a buyback that more than offsets dilution? And ultimately, how do you think about just managing dilution longer term, given that-
Yeah
... growth rates have come down to more of a mature-
Yeah
... growth rate?
Yeah, I mean, this is a discussion we have every quarter with the board, of course.
Yeah
... and thinking about what is the right level of cash, the right level of buyback. And, you know, our goal this year around the buyback was at least to approximate the dilution, which is, you know, where we're treading right now.
We've also spent a lot of time recently thinking about our overall comp philosophy, making sure that we're aligned with the market. As you can imagine, comp plans have changed in the last few years as the job market has loosened a little bit. And so we're making some adjustments there to help overall improve, I would say, growth dilution as well as stock-based comp.
Got it. Got it. Okay. As we think about the productivity area, potentially for M&A-
Yeah
... you announced a number of products there-
Yeah
... I think Calendar, Zoom Docs. Walk us through sort of the chat, I believe it-
Yeah, email
... is anot her one. Email.
Yeah.
I guess, number one, what's sort of the uptake been, and how do you sort of view that strategy in the context of obviously the large productivity leaders?
Yeah.
It's very dominant there, and-
Yeah
... yeah, what are sort of the goals in-
Yeah
... providing that?
The goal is that you can start to really spend your day within the client. It's reducing the toggle effects you have back and forth and starting to really understand and appreciate and benefit from the AI functionality that extends across the entire suite once you're in it. Like, so I leverage all of the Zoom products. I literally live within the Zoom client-
Mm
... for email, for calendar, for everything. So, so it's, it's very, you know, you just get so used to that look and feel and how everything is connected, interconnected. Having the, the ability, we have. So I'm sure you're all familiar with in-meeting chat, but we also now have the feature that an in-meeting chat converts to a persistent chat.
So if you're leveraging the Zoom client, which means that you can see, even if you miss a meeting, you get it. You can see not only the meeting summary, but you also can see all the dialogue that was happening in the meeting itself. So it becomes a very powerful efficiency driver because it's all there, and then the meeting summary, so that asset then also gets saved into that chat. So it becomes your like, your chat basically becomes your filing system.
Mm.
It's where everything from your day is organized, and if you think about going forwards, it used to be you had to choose, like, a meetings platform, and then you had to choose one of the, you know, either G Suite or Microsoft to run-
Mm
... your email and your calendar stuff. Well, pretty soon, I mean, actually today, you wouldn't have to make that choice. You can come to Zoom for all of your needs. They're all there, and at a very... So the integration, the, if you think about the overhead from just running different platforms and all of your users being on it, even the administration of it, having that holistically to live within Zoom, and then the ease of use that's associated with it, I think really has the potential to be a very powerful game changer over time.
Okay. Got it. And staying on the new products announcement side, I know Zoomtopia, this will be your final Zoomtopia-
Yeah
... coming up.
Yeah.
There's always a lot of interesting product announcements. Anything that you're sort of looking forward to the most or anything investors should expect?
I would encourage you all to join us if you can. We're having a smaller sort of footprint this year, but nevertheless, not no less exciting, but I don't wanna steal Eric's thunder-
Yeah.
So.
Yeah. He-
Yeah. I gotta leave it for him.
Yeah, yeah. One of the areas we didn't touch on was sort of the international part of the business.
Yeah.
I think clearly there's macro headwinds and everything.
Yeah
... particularly in Europe, but how do you sort of see the penetration internationally of Zoom Video?
Yeah.
What... How much more runway is there?
Yeah, yeah. So international has huge potential for us. It, as you said, it has been a challenge for the last several quarters. I mean, Europe, you know, that whole ecosystem is, you know, impacted by having two wars, which I can't even imagine how challenging that must be. But it's an area that we continue to invest in. We just hired a new European leader. We opened our London Executive Briefing Center in Q1, so that was really exciting to see. I mean, it's ahead of the U.S.
The San Jose Briefing Center is gonna open in October at Zoomtopia. So we believe there is significant potential there. The other area that we're really investing in international is channel. So certain markets outside the U.S., channel is the only way that they buy, and we have been a little bit behind, if you will, in developing that, because when we were a meetings company, we were 95% direct led. Like, it lent itself-
Mm
... very well to that sales model. Phone and Contact Center, you know, in certain markets, you have to have a channel and a partner program, and so we're just those are a little bit nascent in some of those markets, so really focusing on that. What I'm saying is there's a lot of potential there. It's an area of strategic focus and investment for us, and I think we're at the early stages still, but more to come.
Yeah. And as you think about, like, the legacy meetings customers out there, I mean, I'm still surprised by how many Webex meetings I have to join, right? I say, "How does this still exist in 2024?
Yeah.
But, and that's not even from kind of obscure international organizations.
Yeah.
Like, some of those are US-based, but how do you sort of think about that legacy installed base that's still out there, and are there any type of, I don't know, renewal events or anything that you'd-
Yeah
... you'd point to is giving that opportunity?
Yeah, I mean, I think that the reason that those companies are still running on products like Webex is it's the inertia, and so to your point, you have to catch them in a window. Either it's a renewal opportunity. Again, I think AI is gonna be a key driver for that. Other windows of opportunity that get created is when a Zoom advocate moves to a company that has Webex, for example. That creates an opportunity for us as well.
So we're continuously watching. You know, that's the goal of an account executive, whether they're a current customer or a prospect, to always stay in touch and understand what's happening, what their objectives are, if there are changes or things that are happening. And that's what we look for, is those windows of opportunity.
Got it. Kelly, but with this being your last presentation here at Citi conferences, CFO Zoom, hopefully next year, CFO somewhere else exciting. But I'd love actually just sort of your framing of kind of the future of work. I know that was a big topic coming out of the-
Yeah
... the pandemic.
Yeah.
Zoom had sort of gone all remote and then sort of...
Yeah
... partially back to the office. But how do you sort of see, you know, the world playing out in terms of hybrid work-
Yeah
... in office, and-
Yeah
... how are you thinking about that as you-
Yeah
... take that to your next company?
Yeah. I think that the flexibility of hybrid is the future.
Mm-hmm.
I think that the productivity enhancements. I can speak for myself, like, there's no such thing anymore as work-life balance, right? The two are melded together. But what that gives me is the opportunity to literally work from anywhere, and yet always be connected to my team. I was here last week in New York, and I went to our New York office.
We have a Workspace reservation system that's integrated into our platform. I can quickly go on there. I can find a conference room that I can use. Like, the seamless integration of the office into our platform and into my chat, and my workspace, is incredible, and I love that. Nobody has to know.
I don't mean this as value, but, like, nobody really has to know, or nor do they care, where I am physically. They know I'm available 'cause they can go onto chat, and they can see my presence.
Mm-hmm.
And I think that what I love about it, and when I look at our teams, it has created an opportunity for families to move to places out of high-cost locales like the Bay Area or New York, to places they can buy homes. It's allowed my team members to move close to their families, to start their own families, because they have support. That was not possible five years ago, and-
Right
... I think it just creates a better way of life. I mean, I, you all know, I moved back to Texas, and I love the flexibility that I get because of that. I don't work any less. I probably only work more, because the hours are a little bit different. But for me, my quality of life and being near my family is incredible.
Awesome, awesome. Well, maybe in the last two minutes, I'll open it up to you, just if there was any key message you wanted investors to take away-
Yeah
... as and how to think about the company.
You know, I've got a lot of questions around like, why do I think our stock is greatly undervalued, and why do I think that is? And I guess what I would say is I certainly understand there's been probably a wait and see approach in terms of whether we're really going to execute the way that we said we were to this re-acceleration. And I think, you know, we're well on our way to that.
I would say the potential of this platform is hard even for me to articulate to all of you. So I would really encourage you, if you have the opportunity to, come to Zoomtopia or watch the webcast, 'cause seeing it in action is really incredible.
Let me tell you, like, I really had this aha moment recently where I was like... For those of you that have been around for a long time and seen the story, when we were doing the road show, we had to demo Zoom, because me just saying, "It's better, it's more reliable," was not enough. But once you saw it, it was like-
Yeah
Oh, right, that's really different." We're at that stage again with this platform. It's what AI can drive across this platform, seeing the differentiation of Contact Center versus others. It's really powerful, and we're just at the early stages of what's yet to come. And so the more that you have the opportunity to see it and experience it, I think the more you're gonna understand the potential of the company in the future.
Awesome. Well, Kelly, thank you very much for being here. Congratulations-
Thank you
... on all the momentum and growth you've had at Zoom-
Thank you
... and thanks so much for joining.