RE: 140,000-Seat Megadeal for Zoom Phone22 May 2026 08:41
21 May 2026
Zoom Video Communications Inc. (ZM) reported robust earnings for the first quarter of fiscal year 2027, surpassing analysts’ expectations with an earnings per share (EPS) of $1.55, compared to the forecast of $1.42. Revenue reached $1.24 billion, exceeding the forecast of $1.22 billion.
Allan Verkhovski, Analyst, BTIG1: There we go. Thank you all for that. A couple questions for me. You already touched on it briefly, Michelle Cheng, but wanted to hear more about your success moving up market in Zoom Contact Center and how you’re being more successful in winning those deals, more established providers, functionality or even bidding process. Another one just on use of cash. I know you get asked all the time on this, but Eric Yuan, love to hear from you on how you think about capability to grow AI organically versus potential to maybe acquire some interesting capabilities or platforms.
Eric Yuan, Founder and CEO, Zoom: Yeah. Maybe, Michelle, feel free to chime in, maybe address the CX. We built a very scalable CX platform, right? Because quite often a lot of customer, they want to deploy CX, they would like to leverage the channel partners. You look at our top 10 deals, 10 out of 10 are channel-driven deals to sell enterprise, meaning from go-to-market side, it’s already scalable. Our channel partners, they know how to pitch our story, how to sell to our enterprise customers. Also look at our top 10 deals. In 8 out of 10 deals, we are replacing some other CCaaS vendors. Look at the entire CCaaS market is pretty big, and we’re replacing almost every one of them.
Because of our product, rich feature and innovation, and also the AI, plus our UC and CC combined in a story. That’s the reason why we’re winning. You look at the top 10 ZCX deals, four out of 10 also include a phone. Look at the top 10 of phone deals, four out of the 10 also include ZCC as well. There’s a UC and a ZCC combination also helping us a lot. In terms of organic growth, to build an AI or the acquisition, first of all, we look at everything from customer perspective. What kind of services or features they want us to innovate together with them? Like a search, like a generative workflow, right? We want to build up ourself. If there are any other innovative startup companies, we are willing to.
Full earnings call here
https://m.uk.investing.com/news/stock-market-news/earnings-call-transcript-zoom-video-q1-2027-earnings-beat-forecasts-stock-dips-93CH-4694219?ampMode=1