A – Eric Yuan: We are not ready to share with the number, exact number yet about how many customers deploy the workforce management, so we’ll state in the future quarters.
Operator: And our next question will come from Matt VanVliet fleet with BTIG.
Matthew VanVliet: Yes. Good afternoon. Thanks for taking the question. I guess following up one more on sort of the contact center and Zoom Phone. In terms of overall customer mix, you’re well below 1% penetration on contact center here. Is there a target that you think is sort of the next few years of the customers you’re going to go after? How high do you think of roughly 200,000 customers you have an existing contact center that you’ve maybe identified and comparably work your way into. And then sort of following up on that, what percentage, if you can share the over 100,000 customers, 100,000 revenue customers have Zoom Phone or Zoom Contact Center as an attachment there?
Kelly Steckelberg: So I guess the way that I think about contact center and its progress is that it’s so far is very, pulling in a very similar road map, if you will, than that Zoom Phone did. So if you think about — we can see the visibility internally just as we could with Zoom Phone. But in terms of ARR as a metric for example, it’s going to take a little while for that to be something that’s visible to you. But so far, it’s tracking in a very, very similar way that’s Zoom Phone did, which I think is very encouraging. And that we need a couple more years and then it starts to be a really significant growth contributor. It just start small and then grow quickly, and that’s what we’re seeing.
Eric Yuan: And also, if you look at opportunity, very similar as well. Many years ago, a lot of our enterprise customers, their phone you see deployment is still on-prem. Today, you look at most of our enterprise customer contact center still on track. So that’s why a lot of opportunity ahead of us, in particular, in our model architecture is very scalable.
Matthew VanVliet: Great. Thank you.
Operator: Needham’s, Ryan Koontz has the next question. Ryan, please go ahead.
Ryan Koontz: Hi. Happy Thanksgiving. From Zoomtopia, we’re really impressed with the Zoom Rooms and what you’re doing there. The innovation really seems years ahead of the market. And I wondered how you — what’s your updated view on the rooms opportunity for the company. Do you think it’s strong enough that you can use that as a lead as almost a stand-alone product? And you see the market opportunity more promising for you with that product. You have to go to market in those sort of questions. Thank you.
Eric Yuan: So you’re right. So speaking of the opportunity, you’re also right. We never, customer, for many year, they right deployed the Zoom Rooms for more and more customers. I mean they try to invest hybrid work. They need to have a modern solution for their conf-rooms, they are multiple solutions, Zoom Rooms indeed stands out is indeed years ahead of any other competitors. However, sometimes for customers when they try to support a hybrid work right now, they’re in the middle of embracing hybrid work, right? What’s the new layout of the entire workplace and how many conf-room they needed to support and so on and so forth, right? That’s why a lot of opportunities. At the same time, when guys work together with customers and not only for conf-room innovation, but also entire workplace, the management, what’s the new layout [indiscernible].
I think a lot of opportunity, not only for conf-room itself, like how to reserve a desk, right? All those things we all build in as a part of the Zoom Room, like an example, like a digital signage and also part of Zoom Rooms as the full as the conf-room or workplace solution, and that’s why we needed to make sure a focus on marketing side to share with the customer. Again, Zoom Rooms is not only just for your conf-room solution, but it’s for hybrid work and also for entire workplace as well.
Ryan Koontz: That’s great. Thank you.
Eric Yuan: Thank you, Ryan.
Kelly Steckelberg: Thanks, Ryan.
Operator: Now we’ll move on to Peter Weed with Bernstein.
Peter Weed: Thank you. I think for the first time, at least as far as I can look at in the model, it looks like the kind of large enterprise was greater than $100,000 enterprise customers were roughly flat quarter-over-quarter. But we’re hearing the great stories about customer expansions and the number of those customers has continued to increase, which would imply there’s a whole another set of customers that are either shrinking or churning and it appears that got more pronounced this quarter than perhaps we’ve seen recently. How should we think about those effects, and is that more churn or is it downgrades? And when customers are churning or downgrading, where they’re going? And is this something that is kind of temporary and you see it kind of ending? Or is it something where we may have some pain for a bit of time before we get through some effects?
Kelly Steckelberg: Yeah. So I think we’ve talked about this the last couple of quarters. We certainly have seen impact in our customers having retraction in their own businesses in their own employee count. So we — if that’s the situation that we are working with them, we — the good news is we’ve not seen a lot of logo churn. It has been more down selling in terms of rightsizing, their meeting license numbers. And yet even in that situation, our team is doing a great job of taking the opportunity to transition them from potentially meetings to one of our Zoom One bundles that include Zoom Phone. We talked about in our prepared remarks, we saw that grow over 300% year-over-year in terms of the number of customers that are using those bundles and that’s great for many reasons, right, in terms of retention and having more than one product deployed, we see as very advantageous to customer retention.
