Eric Yuan: Yeah. So first of all, in terms of Online study. I know you have an account. Hopefully, you still have account. And for sure, it can contribute to our Online growth. So speaking about AI, I think we are taking a different approach. As I said earlier, from an architecture perspective, it’s different, federated AI. In terms of monetization, right, again, we look at it how to leverage GenAI to improve our core Meeting experience and deliver more value, make the services more sticky Zoom always offer more and more features values. And at the same time, we do not kind of charge price, increase the price a lot at all, right? That’s right, we build a trust. They want to go to for Zoom Phone platform. At the same time, GenAI does bring huge opportunity like in terms of monetization, in terms of the new service.
As I said earlier, how to leverage GenAI to build some branded new service. You cannot only turn on low-hanging fruits. You already deployed this service. I have a GenAI feature now, you need to pay crazy price. I do not think that’s sustainable. A customer do not like it. right? That’s our approach, how to leverage GenAI to make sure existing customer happy and leverage GenAI to build new services focused on innovation, innovation and innovation. That’s our approach.
Kelly Steckelberg: Thank you, Eric. And Sterling, in terms of Online, I would say we’re pleased with the execution and where you see that is the ongoing stabilization in the churn rate. That, I think, has been really, really well done and stabilized over the last 4 quarters now. And I think that’s a really great indication of the ongoing improvements of the platform, the buy flow, the movement of customers from monthly to annual where we do see some ongoing headwinds is in the overall macro, which is driving more for the top of the funnel. And that’s where when the team continue to focus on new pricing packages, new payment currencies, things they can focus on to expand the top of the funnel so that over time and then eventually starting to add new products as well that can be sold online. That’s what will eventually drive this. Ideally, we want it to not only be stable but to be a growth driver as well.
Sterling Auty: Makes sense.
Eric Yuan: Thank you, Sterling.
Operator: Okay. We have time for one more question. And that last question goes to William Power with Baird.
William Power: Okay. Great. Thanks for taking me in. Maybe one more question on Contact Center. Great to see the traction there. I wonder if perhaps, Eric, if you can update us on where you are with respect to go to market? I know that has been a big focus. How much more room and opportunity is there on that front? And then I guess the second part of that is it feels like there’s a big opportunity with respect to AI Contact Center being a new entrant, how do you think about the opportunity for whether it’s virtual or other capabilities to help you be even more disruptive in that market?
Eric Yuan: Yeah. Great question. So yes, speaking of go-to-market, I think on product front, we have a high, high confidence innovation speed, we have so many features and Workforce Management, a lot of other features are being introduced every quarter. In terms of go-to-market, I think not like what we did before for Meetings, right, by and large, more like primarily driven by [indiscernible] business, Contact Center is different. For sure, we need to double down, triple down on the indirect channel, right, embrace all the sort of partners and master agent and so on so forth. And we need to invest more on that front. And essentially, this is one of the things why not like Zoom Phone [indiscernible] accelerated revenue, but even have a greater Contact Center product.
As you see the progress on go-to market front, I think that we will see the great result. And in terms of AI, not like other vendors, right, they already have Contact Center solution for a long, long time. When you look at AI kind of architecture and flexible, right, how to add AI to that to all those existing leaders the Contact Center. We already realized the importance of AI, right? That’s why we have a very flexible architecture. Not only do we build organic AI features but also acquired Solvvy and also the Virtual Agent and so on and so forth. Organic growth and also the acquisition certainly help us a lot in terms of product innovation. And AI is going to put a big look for the Contact Center. We have higher confidence we can do very well on that front.
William Power: Thank you.
A – Eric Yuan: Thank you.
Operator: Okay. This concludes our Q&A. I would now like to pass things back to Eric for closing comments.
Eric Yuan: Thank you all for joining us for the Q2 earnings call. I really appreciate for your great support and very, very beautiful. And thank you. Appreciate.
Kelly Steckelberg: Thanks, everybody.
Operator: We thank you all for your participation, and we look forward to seeing you again. This concludes today’s conference. Enjoy the rest of your day.
Eric Yuan: Thank you.
Operator: Good-bye.
