So we were ahead of our internal forecast in terms of enterprise renewals. And this is where we see organizations really embracing flexible work and realizing that if their employees are outside of their office even one day a week, they need a Zoom meeting license, maybe a Zoom Phone license, and recognizing that they need to ensure that their Zoom rooms have the right technology in them to provide an inclusive opportunity for collaboration. KELLY STECKELBERG: Your enterprise segment has had really strong renewals over the last couple of quarters. And it will depend on what impact that continues to have.īRAD SMITH: And Kelly, as corporations are really trimming some of their costs wherever they may right now, are you seeing any churn in terms of the number of licenses that each account may be looking to hold on to at this point? And then, of course, FX continues to be a challenge, I think, for all of us in the tech environment to predict. And it really depends on how well all of those goes. So we have lots- we have a huge roadmap, I should say, of initiatives. And that means pricing in local currency, allowing them to buy in payment types that are familiar to them, and ensuring that your packages are right. Wendy Bergh, who runs our online segment, has some amazing initiatives if you think about how do you bring this product into international markets. KELLY STECKELBERG: I would say flat to potentially modest growth. And as we look forward to FY24, we are predicting that we will see stabilization of that business in the mid part of the year.īRIAN SOZZI: Kelly, does that mean that part of the business by the back half of next year returns the growth? In fact, our retention rates in the online segment are back to pre-pandemic levels, which is a really positive factor in terms of stabilizing that portion of the business. We also saw some declines in Asia-Pacific as well due to the FX.Īnd so the team is working on lots of initiatives to improve free to pay conversion, to focus on retention. It is more international-based, and so we've continue to see challenges in Europe due to FX, as well as the war that's happening there. The online segment really has faced some headwinds over the last couple of quarters, a lot of that being FX. And the enterprise has really been the growth driver for the last couple of years. We have the enterprise and the online segment. So, as you said, we have two segments of our business. You see that with the success we talked about on the call yesterday with Zoom One, which is our platform bundle, as well as Zoom Phone, Zoom Chat, Zoom Contact Center. We are making this amazing transition from being the killer meeting app that everyone knows and loves to being a full collaboration platform. I would absolutely point towards our enterprise segment of our business, as well as the platform strategy. If there's one thing that you kind of look out into the future to really signal where Zoom can continue to grow, what would you point towards right now? Kelly, always a pleasure to get some of your insights after the quarter ends. Joining us now with more, we've got Kelly Steckelberg, Zoom CFO. Investors zooming in on the company's corporate bundles as the competition heats up. Video TranscriptīRAD SMITH: Make room for Zoom, the pandemic darling seeing shares take a hit on its outlook, despite quarterly earnings that beat expectations. Zoom CFO Kelly Steckelberg joins Yahoo Finance Live to discuss company earnings, transitioning the platform for collaboration, focusing on user retention, and the outlook for profit growth.
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