Zoom Q3 Earnings

By Patrick Moorhead - December 5, 2023

The Six Five team discusses Zoom Q3 Earnings.

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Transcript:

Patrick Moorhead: Yeah. So they had a beat beat double profit raise for Q3 FY 24. So they absolutely crushed it and it was great to see that their big customers drove the growth, which I like because the pricing is stickier, harder to switch. They had some really big names that they brought on the call. A few nuggets, right? Seven million paid call seats for a relatively new product. Another new product contact center. 700 contact center customers. They doubled their virtual agent. 200,000 customers using AI, which by the way folks, that is the best example of work AI that I have used so far. And that’s the summary notes. Try it out. I think you’ll be impressed. Lowest churn ever and free cashflow up 66%. So listen, I think that the AI for free is starting to pay off and when you get a beat beat double profit raise, it’s a pretty awesome quarter.

Daniel Newman: Yeah. Pat, you really did hit it on the head. Zoom, it’s been a bit circumstantial. The Zoom boom of the COVID era led it to two and 300% growth. Sent its stock price soaring to three $400 a share. And then reality set in and Zoom just continues to chip wood. They’re continuing to add products, diversify the platform, add generative AI capabilities, deliver high quality customer experiences. They always will have the challenge of the more monolithic platforms that live within big environments, whether it’s Microsoft, Salesforce, Cisco, and they’re always going to be the sort of outsider ’cause they just haven’t yet won that end-to-end platform, but lots of good integrations, lots of good capabilities, and good results consistently. So I think there’s a growth story here and it will be worth continuing to watch that.

Patrick Moorhead
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Patrick founded the firm based on his real-world world technology experiences with the understanding of what he wasn’t getting from analysts and consultants. Ten years later, Patrick is ranked #1 among technology industry analysts in terms of “power” (ARInsights)  in “press citations” (Apollo Research). Moorhead is a contributor at Forbes and frequently appears on CNBC. He is a broad-based analyst covering a wide variety of topics including the cloud, enterprise SaaS, collaboration, client computing, and semiconductors. He has 30 years of experience including 15 years of executive experience at high tech companies (NCR, AT&T, Compaq, now HP, and AMD) leading strategy, product management, product marketing, and corporate marketing, including three industry board appointments.