Zoom just posted its highest growth for 11 quarters amid continued efforts to build out a channel business.
Despite its direct sales heritage, Zoom says eight of its top 10 contact centre deals during Q2 were generated by the channel, as its year-on-year growth accelerated to 5%.
On an earnings call, CFO Michelle Chang, characterised this as “another evidence point of us really building out more of a channel”.
Zoom’s $1.22bn top line for the quarter was $17m above the high end of its guidance.
Enterprise sales contributed 60% of the total after growing 7%, with Zoom almost doubling its number of $100,000 ARR-plus contact centre customers during the quarter to 229.
“When they test Zoom, they say, ‘wow’”
Having peaked at over $150bn during the pandemic, Zoom’s market value has since plunged back down to pre-Covid levels. It is now worth around $22bn.
The NASDAQ-listed vendor is now styling itself as an “AI-powered collaboration” company, having dropped the ‘Video’ from its formal name in November.
On an earnings call, Zoom CEO Eric Yuan revealed that all of its top-10 contact centre deals during the quarter were displacements of leading competitors.
Although an analyst in the Q&A session characterised this success as “very surprising”, Yuan responded that “it’s not surprising to us”.
“They really want to look at a modern contact contact centre solution. When they test Zoom, they say, ‘wow’,” he replied.
Zoom has already co-sold several large enterprise contact centre deals with PwC after striking up a collaboration with the professional services firm, Yuang said.
Some eight of its top-10 contact centre deals came in from channels, CFO Michelle Chang added, which she branded “another evidence point of us really building out more of a channel”.
“Many companies” are “boomeranging” back to Zoom after trying other services, Yuang claimed.
This includes application delivery vendor F5 Networks, which “bounced back” to Zoom with a “seven-figure ARR deal”, which he chalked up to Zoom’s “increased productivity and lower total cost of ownership”.
AI adoption now extends “well beyond meeting summaries” with “strong momentum in meeting prep and post meeting task management, call summaries for Zoom Phone, and AI first meeting integration and content generation capabilities for Zoom Docs”, Yuang claimed.
