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

Page 8 of 13

Kelly Steckelberg: Yeah. So, first of all, remember, our strategy for selling Zoom Phone is selling into existing — in the existing installed base. So I don’t know actually a split between those 9, but I am sure that the majority of those were existing Zoom customers. And I think I would say, there’s a focus on the company that, as Eric has talked about of expanding not beyond, not to just phone, right, but expanding to the full platform. So that’s really what we have our teams focusing on now. It’s Zoom One, it’s Contact Center, it’s Zoom IQ for Sales. Now it’s Email and Calendar and really thinking about that complete platform, including Zoom Chat and the adoption within organization. So it — for all the reasons we have been talking about in terms of retention, flexibility for organizations to reduce vendors, the cost savings, the total cost of ownership that they see by having that combined that for all of those reasons, that’s really becoming the focus of our Enterprise sales organization.

Operator: And our next question will come from Matthew Niknam with Deutsche Bank.

Matthew Niknam: Hey. Thank you for taking the question. I wanted to ask, you mentioned the greater value that customers are seeking out from the broader platform. I am just wondering, are there specific areas where you see maybe more room to strengthen the platform and with the compression we have seen in market valuations, how are you thinking about potential inorganic opportunities? Thanks.

Kelly Steckelberg: So, Eric, do you want to talk about the platform and the value they see.

Eric Yuan: Yeah. Sure. Absolutely. I think for those customers, right, who deploy Zoom One platform, right? They really like it. The reason why you look at the when same client, the same interface, right? And if you have a scaled meeting, you can use our Zoom team chat, communicate with our teammates and customers, make a phone call, white board is there, now we added Email and Calendar fully integrated together. I think that’s the whole lot. And plus, if you look at the customer, we used to be deploying many other partners solutions, always one platform on the full UC stack. That is value a seamless experience and that’s why more and more customers no matter which other cloud business solutions they deploy, for example, we deploy other cloud business solutions not realize the full value of the entire Zoom One platform, we see more and more end customers, they just reach out to us rather than they reach out to Zoom to update.

Now they reach out to us. We say, yeah, I see the good value and that’s why more and more innovations will be built upon the Zoom One platform. And yeah, like, Zoom Spot, We arecently announced and that’s our focus to double down our platform story.

Matthew Niknam: And just in terms of inorganic opportunities

Kelly Steckelberg: Yeah.

Matthew Niknam: if you can elaborate on that?

Kelly Steckelberg: Yeah. Sure. So we continue every day to look at opportunities, and yes, the compression evaluation certainly is not lost on us. What We are always trying to balance, of course, is what would it bring to our customers, what would it bring or the impact potentially on our culture and then, of course, the value and the state of the technology, right? We have a high bar for both talent and technology here at Zoom. So it’s been difficult, I would say, to date to find something that really meets all of those standards. Eric is a very hard judge, but that doesn’t mean that We are stopping and we continue to look for opportunities every.

Page 8 of 13