Peter Weed: Thank you.
Eric Yuan: Thank you.
Operator: Our next question comes from Taz Koujalgi with Wedbush.
Imtiaz Koujalgi: Hey, guys. Thanks for taking my question. Two questions. First one for Kelly. I think you had a price increase for the Online business in Q1, and that was being phased out, I think, in different geos at different times. Has that been rolled out across the globe? And if you can comment on any tailwind you saw from that price increase in the Q2 Online business?
Kelly Steckelberg: Yeah. So it has been very effective in general in terms of maintaining strong retention rates and moving customers from monthly to annual as they continue to see value when we rolled out this price increase. And given that it’s been in effect for the full time now, we’re not going to break out, but it break it out separately, but it certainly is overall having a great impact including in the momentum for our Online and it is — I believe it’s live in every market at this point.
Imtiaz Koujalgi: Got it. And then one follow-up on Contact Center. I know it’s just pretty early you’ve just started — you’ve just had your first early customers. But any comments on price points you’re seeing and attach rate of seats. So let’s say a customer has 100 seats of Zoom Meeting, when customers buy a Contact Center, what is kind of the attach rate that you’re seeing for these early customers?
Kelly Steckelberg: Yeah. It’s — I mean it’s very different, right, in terms of it’s not anywhere near, like Phone, typically is near one to one and sometimes even more one to one attach rate. Contact Center is very different. It depends on the use case we’re seeing of the customers. If it’s an internal help desk, or if it’s like — one of our largest deals to date was a BPO, where it is their business, right, to drive Contact Center. So I don’t think there’s necessarily a standard ratio that you can look at because it varies so much based on use cases. And then in terms of pricing, as a reminder, our list price for Contact Center is highly disruptive. It’s $70 per seat. And given — comparing that, it’s — given comparing it to the other competitors in the market, it’s a really — I think it brings a lot of value to our customers.
So while Enterprise customers and large customers are going to get discounts, we’ve certainly been able to manage to maintain price points, given how disruptive and competitive it is compared to others in the market.
Imtiaz Koujalgi: Guys, sneaking just one more clarification. Kelly, you mentioned that we won’t have visibility into Contact Center revenues for another four to six quarters. It’s still very early. Were you implying that it will be close to 10% of revenues in four to six quarters?
Kelly Steckelberg: No. I don’t mean to imply that at all. I just mean that I see laughing — that over time, you started to see Zoom Phone and we talked about like more milestone metrics and how it was contributing, that’s what I was saying. I mean that would be the best growth rate if that were to occur.
Imtiaz Koujalgi: Got it. Thank you guys. Thanks a lot.
Eric Yuan: Thank you.
Operator: Our next question comes from Matt Stotler with William Blair.
Matthew Stotler: Hey. Thank you for taking the question. Maybe just a follow-up on Zoom Phone. If I look at the disclosure this quarter, $500 million ARR and last quarter, Zoom Phone 10% of revenue. The implication would be something in the ballpark of, let’s say, 10%, maybe a little more sequentially in terms of growth for Zoom Phone ARR. I’ll just dig into — or double-click on, I guess, what’s driving that growth, right? Is that indicative of the success we’re seeing is Zoom One? Is that evidence of go-to-market maturity there? Is it some large customers like the BPO you just mentioned kind of ramping up? Anything you’d like to call out there?
Kelly Steckelberg: Yeah. I mean, actually, Matt, it’s all of the above is what I would say. It’s — as we’ve taken — as we are talking to our customers about renewals, taking the opportunity to talk to them about the value of Zoom One or talking about just helping them — I think every CFO and CIO across the world today is trying to think about how do they drive more efficiencies in their organization and Zoom Phone is a great way to do that when you look at it compared to the ROI, especially of having an on-prem solution. And then also with Contact Center — Contact Center is a driving force, Zoom Phone is a very natural adjacency to it. So I think it’s a combination of all of that, and it’s just going to continue to create more and more synergies as Zoom Contact Center especially continues to mature.
Eric Yuan: Yes. Just quickly, when we talk with our customers, they really like we have a both — they deploy both Zoom Meeting and Zoom Phone together. The Contact Center, a new opportunity, in particular, for those customers I think they don’t want to deploy a point of solution, right? If you just have a Phone business, it’s really hard to build a sustainable business customer Phone and Meetings, some of – they’re very similarly integration, like you have a phone call, one more click and jump on the video meeting, right? So that’s – that kind of a similar experience really helped us further our Phone growth, right? If you just offer a point of solution, it’s really not scalable, not a sustainable. And down the road, more and more customers would like to move on platform play like a Zoom.
Matthew Stotler: Got it. Thank you.
Eric Yuan: Thank you.
Operator: Our next question comes from Sterling Auty with Moffett Nathanson.
Kelly Steckelberg: Hi, Sterling.
Sterling Auty: Hey, guys. All right. Kelly, for the Online outlook, how much of this is that — because it seems like the Online guidance is a little bit worse than what we had before. How much of this is macro? How much of this is execution? And Eric, one for you. When we think about AI and all the innovation that you’re driving, how much of that AI innovation is just going to be driving and differentiating the core Zoom products versus bringing a premium monetization kind of pricing model or specific AI SKUs?
Kelly Steckelberg: Eric, do you want to go first?
