Zoom Video Communications, Inc. (NASDAQ:ZM) Q3 2023 Earnings Call Transcript

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James Fish: Hi. Thanks for the question. Most of might have been asked, but I did actually want to ask on the Enterprise sales investment that we have been talking about the last is like a couple of years. How are you guys looking to balance productivity improvements to support your margin stability versus expanding capacity, especially as these reps over the last few years, really had the advantage of an easier sales cycle with Meetings especially. Is there any way to also understand the experience of reps underneath in terms of how much are fully productive at this point? Thanks.

Kelly Steckelberg: Yeah. So in terms of our reps, we are constantly looking at opportunities to help make them more productive. And as you — we were just talking about we have hired a lot over the last few years and as we look forward to FY 2024, we will be making many fewer hires. So We are really looking for how do we enable the reps, how do we make sure that we have the overlay teams in the right places to support them. As a reminder, that’s — we have specialists that are selling Contact Center and Phone and that’s a really important aspect of making sure that everybody is aligned on serving our customers in the best way possible. So that is a big focus. We also have a new President, Greg Tomb, that you all met last quarter and he’s been spending a lot of time helping us think about that, especially as We are moving up in the Enterprise stack, that’s his experience, so where his background is.

And then — and really focusing on making sure that our comp plans aligned. That’s another thing that We are taking a look at for FY 2024 as well.

Eric Yuan: And James, another big point just to add on to what Kelly said and also the Zoom IQ for Sales that product certainly added value to drive our team’s productivity, right, especially when reps that work remotely, right, how to manage their productivity, drive efficiency, take some actions, right, quickly. I think we will deploy Zoom IQ for Sales by end of this month, literally every rep will be fully trained on Zoom IQ for Sales, right? Not only do we have our sales productivity and also we will create a lot of opportunity for us to sell more and more Zoom IQ for Sales. That’s a future value for areas to drive productivity.

James Fish: Helpful. Thanks, guys.

Eric Yuan: Thank you.

Kelly Steckelberg: Thanks, James.

Operator: Moving on to Matthew VanVliet with BTIG.

Matthew VanVliet: Yeah. Hi. Good afternoon. Thanks for taking my question. I guess you highlighted Zoom Rooms and curious how much of that uptick do you feel like has been sort of a return to office for a number of companies and really having that mixed modality of a conference room and still having remote workers in. And how much, I guess, sort of risk might that come under over the next several quarters of being a growth lever as we have seen layoffs, as we see a slower macro and maybe that’s not an additive spend that the companies are going to want to undertake when they are already paying for the individual Zoom licenses? Thanks.

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