William Power: Thank you.
Operator: And we will now hear from Matt Stotler with William Blair.
Matt Stotler: Hi, there. Thank you for taking the question. Maybe just one more on the Online business. It would be great to maybe get some color, some commentary on the economics of that business, the margin profile as it compares to the Enterprise segment of the business and what the implication there is as that revenue mix continues to shift, specifically in the context of the updated long-term figures you gave us a couple of weeks ago.
Kelly Steckelberg: Yeah. So we have talked about this before, our Online business is a higher margin business as it’s largely, not completely, but largely untouched by any person from a sales organization. There are some Online account executives that are there to answer questions. But it’s minimal compared to our Enterprise sales organization. So we certainly took — we have done a lot of work on modeling what that looks like a and we have taken that into consideration as we laid out our long-term margins that we shared with you at Analyst Day as we look forward for the next several years and how we think the mix could shift between the underlying the Online, sorry, Online and Enterprise businesses.
Matt Stotler: Got it. Thank you.
Kelly Steckelberg: Yeah.
Operator: Moving on to Ryan Macmilly, my apologies, Ryan MacWilliams with Barclays.
Kelly Steckelberg: Hi, Ryan.
Ryan MacWilliams: Thanks so much. hey. Follow up on Matt’s question. Kelly, can you hear me?
Kelly Steckelberg: Yeah. Hi.
Ryan MacWilliams: Yeah. Probably all perfect. You previously noted a potential inflection in the Online business early-to-mid next year. With churn now right at around pre-pandemic levels, but we are still seeing revenue declines sequentially in this segment. Any updates as potential inflection and also is there any impact from existing Zoom customer’s upselling to Enterprise on this Online business segment? Thanks.
Kelly Steckelberg: So, yeah, the answer is yes. There are customers that eventually upsell into Enterprise, which is great, right, because that means they are expanding and they are becoming a bigger customer overall, which we love to see, but that does then, I mean, it’s not company churn, but it looks like it’s moving out of the Online business into the Enterprise. And in terms of — the way We are talking about it is a stabilization of Online and we expect that from a dollar perspective to still happen in Q2 of next year, based on our current forecast that We are seeing.
Ryan MacWilliams: Got it.
Operator: I am moving on to Parker Lane with Stifel.
Parker Lane: Yeah. hi. Thanks for taking the question. Kelly, you referenced thousands of customers that have signed up for Zoom One since it launched, I believe, about five months ago. Can you help me understand the profile of those customers a little bit better? The majority of them tend to be existing customers that have been migrated onto Zoom One new packaging or are you seeing a big net new cohort as well? And then two, is it skewing more Enterprise for customers that are thinking about going with Zoom One or are you also seeing a pretty decent spread across all different size organizations? Thanks.
Kelly Steckelberg: So, Eric, I know you love to talk about Zoom One. Do you want to talk about it for a second just
Eric Yuan: Yes. Sure. Exactly. I think that — first of all, I think, Parker, you look at our Zoom One, we launched several months ago, right? And look at all those customers, minimum-sized, Enterprise, SMB, they also see the value, that’s why we see and almost every market we are talking, they are moved towards the Zoom One package, so they do see the value. But you not see any test markets that the segment truly standing out from all the way from SMB to device and I think that’s exactly what we anticipated.
Kelly Steckelberg: Thank you, Eric. I would just add to that, that the key customer wins that we saw in Zoom One in Q3 were a pretty balanced mix of new, as well as customers that are upselling as they are adding new products to the portfolio, so We are really happy about that, that We are seeing traction in both aspects of the business.
