Zoom continues to see success with its remote collaboration tools, even while requiring its own staff to work in the office at least twice weekly.
The pandemic-era tech giant reported a Q2 fiscal 2025 revenue of $1.16 billion, marking a 2.1 percent increase from last year. Enterprise revenue for the same period reached $682.8 million, up by 3.5 percent.
The company’s operating income for the quarter was $202.4 million, a rise from $177.6 million in the previous year.
During an earnings call, Founder and CEO Eric Yuan highlighted that Zoom outperformed expectations, seeing growth in large accounts. Customers contributing over $100,000 in revenue within the past 12 months increased by 7.1 percent, according to Yuan’s statement.
Zoom Contact Center secured multiple notable clients, including its largest deal to date. Yuan mentioned that these accomplishments highlight Zoom’s capability to win major deals with advanced AI features aimed at enhancing agent performance.
On the earnings call, Yuan stated that recent enhancements to Zoom Workplace represent “the most significant upgrade to the Zoom experience in years.”
Yuan elaborated, saying, “We reinvigorated the UI with the simplicity and reliability that has defined Zoom from the very beginning. We’ve also enhanced the capabilities of Zoom Meetings, Zoom Team Chat, and Zoom Phone, while integrating AI to boost performance across these services.”
Additionally, Yuan noted the recent launch of a Zoom Webinar feature that can host up to 1 million attendees, along with the debut of Zoom Docs, an AI-powered tool designed to turn meeting content into actionable documents.
Reg readers and authors seem caught in the endless AI hype cycle, no matter how hard they try to escape it.
In addressing a question on the call, Yuan reassured that Zoom will never use customer data to train its AI models. He emphasized, “We take customer data very seriously, and our customers trust our brand. So far, I see no impact from any potential AI regulations.”
The call also revealed that Chief Financial Officer Kelly Steckelberg will depart after nearly seven years with Zoom. No reason was provided for her departure, but some speculate it may be related to the office attendance mandate.
Zoom made headlines last year by enforcing a policy requiring employees within 50 miles of an office to work in-person at least two days a week. Yuan reportedly told employees that the Zoom platform alone couldn’t build as much trust or foster innovation as in-office collaboration.
Investing.com noted that Steckelberg sold her entire direct holdings in Zoom at the end of June, amounting to over $288,000.
Steckelberg mentioned on the call that Zoom’s Q2 revenue exceeded the company’s guidance by approximately $13 million. Enterprise revenue made up 59 percent of the total, up from 58 percent the previous year.
Looking forward, Zoom expects Q3 revenue to range between $1.16 billion and $1.165 billion. At the midpoint, this would reflect a 2.3 percent year-over-year growth. Steckelberg suggested that Q2 might have been the low point in growth for this year, with a rebound expected in Q3.
Although it’s a far cry from the pandemic boom, when Zoom’s revenue surged by 367 percent year-on-year for the quarter ending October 31, 2020, the company continues to adapt to the post-pandemic landscape.
For fiscal 2025, Zoom forecasts revenue between $4.63 billion and $4.64 billion, marking approximately 2.4 percent annual growth. ®
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