Zoom Communications (NASDAQ:ZM) used its Zoomtopia 2026 investor session to outline a strategy centered on AI-enabled “system of action” products, provide new operating metrics across its business lines and introduce long-term financial targets through fiscal 2030.
Chief Financial Officer Michelle Chang said the company’s strategy is built around capturing conversations, adding a Unified Context Layer to understand business information, and helping customers complete work across Zoom’s product portfolio. She said the company believes its access to conversations, open ecosystem approach, deployment flexibility and AI-related trust controls provide structural advantages.
“Conversation and context are great, but what really matters is the ability to get it to completion,” Chang said, citing potential customer outcomes including revenue improvement, higher customer satisfaction, lower costs and greater productivity.
Long-Term Targets and Capital Returns
For the first time, Zoom provided time-bound long-term guidance. The company said it is targeting total revenue growth of 6% to 8% in fiscal 2030, including double-digit growth in enterprise revenue. Chang said the target is an organic-only outlook and is based primarily on established and scaling products that are already proven in the market.
The company expects online revenue to remain roughly stable under the outlook. Zoom reiterated its ability to maintain gross margins and said it expects non-GAAP operating margin to be around 40%, replacing prior long-term non-GAAP operating-margin guidance of 33% to 36%.
Chang said Zoom expects free cash flow generally to grow in line with operating income, while noting that interest rates and taxes can affect results because of the company’s cash position. She also said Zoom has announced $4.7 billion in share repurchases and executed $3.4 billion of that authorization. The company has committed to reduce its share count in fiscal 2027 and beyond through buybacks.
On acquisitions, Chang said Zoom intends to focus on small- to medium-sized deals tied to its three business priorities: elevating the core business with AI, expanding line-of-business solutions and developing new AI revenue streams.
Enterprise Momentum and Core Products
Chang said Zoom’s enterprise business grew 7.5% in the latest quarter, its highest enterprise growth rate in three years, and now represents more than 62% of the company’s business, compared with 58% four years earlier. She said the company is seeing growth among customers contributing more than $1 million and more than $100,000 in annual revenue.
The company also highlighted product adoption metrics intended to support its land-and-expand strategy:
- Zoom Phone penetration reached 29% of Zoom’s Meetings enterprise-account base.
- Webinar penetration reached 27%.
- Rooms penetration reached 17%.
- Customers using three or more Zoom products had 43% lower dollar churn than customers using one or two products.
- Customers adopting AI had a 70% lower churn rate, according to Chang.
Chief Sales Officer Graeme Geddes said the rationale for adopting Zoom’s core products is shifting beyond remote and hybrid collaboration. Customers increasingly want Zoom to participate in and add intelligence to conversations across their organizations, he said.
Geddes highlighted AI capabilities including automated speech recognition, speaker identification, Smart Name Tags, voice translation, deepfake detection and sensitivity labels. He said these tools support use cases where participants in physical conference rooms want Zoom to capture, transcribe and assign actions from discussions.
Zoom Phone is also gaining customers beyond the existing Zoom base, with about one-third of Phone deals coming from net-new customers, Chang said. Geddes said customers are using Phone and AI receptionist capabilities to consolidate fragmented voice environments and automate functions such as scheduling, appointments and reminders.
Customer Experience and AI Products
Zoom said more than 60% of its Contact Center business now comes from SKUs with AI value, including Zoom Virtual Agent, Zoom Contact Center Elite and Contact Center Intelligence. Chang said that AI-related portion of the business is growing in the “mid-100s.”
The company said customers that move from Zoom Contact Center to Elite have generated a 122% realized uplift, including churn, while customers adding a virtual agent have generated roughly 40% realized uplift. Among Zoom’s top 100 Contact Center deals, 90% were net-new customers, and 70% included Zoom Phone, Chang said.
Chris Morrissey, Zoom’s general manager of customer experience, said Zoom is positioning its offering beyond traditional contact-center-as-a-service software. He said the company sees customer experience as spanning contact centers, phone systems, kiosks, meetings and video interactions. Zoom Virtual Agent can be sold separately from Zoom’s broader customer experience platform, he said.
Morrissey said Zoom is seeing growth in both chat and voice virtual-agent engagements, with voice growing fastest. He also described use cases in which virtual agents could support customers through kiosks in physical stores and transfer interactions to contact-center experts when necessary.
Context Layer, ZoomMate and New Business Lines
Chief Product Officer Russell Dicker said Zoom’s Unified Context Layer is intended to create a richer view of customer information by connecting data from meetings, phone calls, webinars, chat and external systems. He said the company’s ability to access not only transcripts but also meeting content, chat and real-time interactions differentiates its approach.
Dicker pointed to My Notes as an early example of the strategy. Zoom said My Notes has approximately 1.5 million monthly active users, while online customers using My Notes churn at less than half the rate of customers who do not use the product.
ZoomMate, the company’s AI productivity offering, is designed to use this context to assist users with tasks such as preparing for sales calls, searching connected systems and drafting materials. Dicker said the University of Newcastle became Zoom’s first Asia-Pacific ZoomMate deal in the second quarter.
The company also highlighted Workvivo, BrightHire and its combined Common Room and Zoom Revenue Accelerator offerings. Workvivo surpassed $100 million in annual recurring revenue in the second quarter, Dicker said. Zoom said BrightHire customers have increased more than 75%, while the product has been deployed in roughly 1,000 hiring organizations.
Chief Executive Officer Eric Yuan said Zoom plans to change its go-to-market approach for some products. For Meetings, he said the company can sell directly to sales teams at organizations that may otherwise standardize on another communications platform. For online products such as My Notes, Zoom Virtual Agent Receptionist, ZoomMate and the Zoom AI productivity suite, Yuan said Zoom intends to invest in product-led growth marketing.
Yuan also said the company intends to remain patient with capital deployment, arguing that AI could create acquisition opportunities in the next 24 months among system-of-action and system-of-record companies.
About Zoom Communications (NASDAQ:ZM)
Zoom Communications, Inc (NASDAQ: ZM) is a communications technology company that provides cloud-based collaboration and customer engagement solutions. Founded in 2011 and headquartered in San Jose, California, the company is best known for Zoom Meetings, its videoconferencing platform for online meetings, webinars and virtual events.
The company’s product portfolio also includes Zoom Phone, a cloud-based business phone service; Zoom Team Chat; Zoom Rooms for hybrid meeting spaces; Zoom Whiteboard; and Zoom Contact Center.
