How Zoom is Evolving to be an AI-first Company
The COVID-19 pandemic accelerated the adoption of remote work technologies, with video conferencing platforms becoming essential for maintaining business continuity and personal connections.
Today, as the world transitions to hybrid work models, these platforms are evolving to offer more comprehensive solutions that integrate AI and other advanced technologies to enhance productivity and user experience.
According to a recent survey by Capgemini, 32% of top executives globally consider AI agents as the top technology trend in data and AI for 20251.
This trend reflects the broader industry movement towards more sophisticated, autonomous AI systems capable of handling complex tasks with minimal human oversight.
Zoom's journey began in 2011 when founder Eric S. Yuan set out to build the best video conferencing solution on the market.
The company has since expanded its offerings to include team chat, webinars, phone services and a cloud-based contact centre.
Reflecting its evolution beyond video into a unified communications platform and its adoption of AI, Zoom has changed its name to Zoom Communications, from Zoom Video Communications.
The company, which gained widespread popularity during the global pandemic for its video conferencing software, is positioning itself as an AI-first company delivering modern, hybrid work solutions.
Zoom's evolution: From video meetings to AI-driven workplace
According to Eric, Zoom is now about much more than video meetings.
The company is transitioning into an AI-first work platform for human connection, with its AI assistant, Zoom AI Companion, at the centre of this evolution.
"Our AI assistant, Zoom AI Companion, is the heartbeat of our evolution into an AI-first company and is critical in helping our customers uncover new opportunities for greater productivity.”
Zoom's rebranding reflects its expanding scope and plans for long-term growth.
The company aims to develop AI-centric tools and products that enable users to work more efficiently and productively.
Q3 financial highlights and customer metrics
Zoom's strategic shift appears to be paying off, as evidenced by its strong third-quarter results for fiscal year 2025.
The company reported total revenue of US$1,177.5m, representing a 3.6% year-over-year increase.
- Third quarter total revenue of US$1,177.5m, up 3.6% YoY as reported and in constant currency
- Third quarter Enterprise revenue of US$698.9m, up 5.8% YoY
- Third quarter GAAP operating margin of 15.5% and non-GAAP operating margin of 38.9%
- Number of customers contributing more than US$100,000 in trailing 12 months revenue up 7.1% YoY
Enterprise revenue, a key growth area for Zoom, reached US$698.9m, up 5.8% from the previous year.
The company also reported 3,995 customers contributing more than US$100,000 in trailing 12 months revenue, a 7.1% increase from the same quarter last fiscal year.
Zoom's financial performance demonstrates its ability to retain and grow its customer base, even as the initial surge in demand for video conferencing services has stabilised.
It's online average monthly churn reached an all-time low of 2.7%, indicating strong customer retention.
AI-driven innovations and future outlook
At its recent Zoomtopia conference, Zoom unveiled several AI-driven innovations, including AI Companion 2.0 and paid add-ons for AI Companion and industry-specific AI customisation.
“At Zoomtopia we announced major milestones such as AI Companion 2.0 and paid add-ons for AI Companion and industry-specific AI customisation, further cementing our vision to deliver a differentiated AI-first work platform that empowers customers to achieve more than ever,” Eric says.
These developments are part of Zoom's strategy to deliver a differentiated AI-first work platform.
Eric noted: "We are an AI-first company delivering modern, hybrid work solutions that enable you to collaborate seamlessly".
The company envisions a future where AI assistants could potentially enable a four-day work week by significantly reducing time spent on less meaningful tasks.
Looking ahead, Zoom expects total revenue for the fourth quarter of fiscal year 2025 to be between US$1.175bn and US$1.180bn.
For the full fiscal year 2025, the company projects total revenue between US$4.656bn and US$4.661bn.
Cybersecurity challenges in the AI era
As Zoom and other companies in the technology sector increasingly rely on AI-driven solutions, they must also contend with new cybersecurity challenges.
The Capgemini survey reveals that 97% of organisations have encountered breaches or security issues related to the use of generative AI in the past year.
To address these concerns, Zoom and its competitors are investing in advanced cybersecurity measures.
This includes the development of AI-driven threat detection systems and the exploration of post-quantum cryptography to protect against future quantum computing threats.
As Zoom continues to evolve beyond its roots in video conferencing, Eric expressed the company's achievement: "Our AI assistant, Zoom AI Companion, is the heartbeat of our evolution into an AI-first company and is critical in helping our customers uncover new opportunities for greater productivity.”
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