Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| So very excited about that product and how it's performing |
| That's a huge market opportunity |
| And that gives us -- with the strength of the balance sheet, that we have today -- gives us the opportunity to continue to pursue M&A either organic or inorganic opportunities for growth while also returning shares -- or sorry, sharing returns through the buyback |
| We were really pleased with our Q4 results, ahead of the high end of our guidance in terms of top line results, and we saw momentum in both the direct and the online segments of our business |
| So very, very happy about that |
| For those of you that have been following us for a while know that we've been really focused on getting to stabilization in the online segment and feel really good about where that is |
| And we're really focused on investing to reaccelerate growth at the top line, and doing that balanced with a buyback, which we feel is a great opportunity to return -- share returns back with our shareholders |
| And I think we've been doing a better job of helping our customers ensure they understand the breadth of the platform and the value that it can bring for them |
| So the total cost of ownership is really strong for our customers |
| And so our team does a really, really good job and they've been doing this ever since the pandemic in terms of optimizing as much traffic as possible in our own data centers |
| So everybody really back at it and feeling good about what they're producing |
| And then when you bundle phone with meetings and with chat, the added benefits you get of having it all right there and being able to chat with someone, one click launch into a phone call with them, one click launch into a meeting, do groups together, all of that is a very compelling proposition |
| But I think all of the combination of those factors came together to give that strong result for the quarter |
| So we're really excited about that |
| And as they do that, we're actually better positioned then to grow with them because now they're sitting in this higher dollar SKU |
| In terms of the roadmap we believe we'll have most of the enterprise features now that we need in the next six to nine months for that to really enable us to start competing for the big like 10,000 seat deals, but that's going to take a little bit a while for it to start showing up in terms of external revenue, but very excited about the momentum there |
| So it is a benefit for us |
| So that's really great |
| So right there, you start to see how this could accelerate even with the same number of seats being sold at obviously double the ASP, which is really encouraging to see |
| There's been such strong reception to the Contact Center and the features and functionality |
| Our teams have done a really good job in having these renewal discussions of really focusing on retaining the spend |
| We saw really strong retention numbers in terms of online as well, was 3%, stable from Q3 to Q4 |
| And of course, our platform is an amazing place |
| Contact center, very early days, but really good feedback from prospects |
| That's the great news |
| It's not going to be like a huge step up that you're going to see externally, but it is a benefit for us |
| So that was a really nice number to see |
| So what we've done historically to date is we've done two like talent acquisitions and we've done two tech tuck-in acquisitions, which have all gone very, very well for us |
| I think if you step back for a minute and think about like my peers, who are all focusing on vendor rationalization, eliminating excess spend, Zoom has a lot of opportunities to help our customers do that |
| Also some strength in contact center |
| Statement |
|---|
| Both EMEA and APAC were down year-over-year |
| And do we need CCaaS to offset those gross margin headwinds? Or could it be actually additive to the model? Kelly Steckelberg So we guided FY25 gross margin to be 79%, which is 100 basis points lower than where we were and what our long-term target is of 80% |
| So international, obviously, was a headwind for us in FY24 |
| Like they're -- especially one of them, right, is really challenged just with what it's dealing with in its own right now |
| And we presume that some of them have had some dislocation in their employee base |
| You mentioned -- and there were some headwinds in terms of AI investments |
| Maybe a final question on the online, this business, it does continue to decline |
| And so that the renewals, rightsizing discussion will still be somewhat of a headwind for us in FY25, but to a lesser extent than it was in FY24 |
| Unidentified Analyst Especially when it works, which Zoom does |
| We believe even at $149, which is the highest price point, that's less than the average ASP in the market, which is over $200 |
| It's an understatement probably |
Please consider a small donation if you think this website provides you with relevant information