Zoom has reported that its AI Companion productivity assistant has had over 500,000 accounts enabled within five months of launching.

In its Q4 FY 24 earnings call, Zoom underlined the early successes of its AI investments as being key drivers of its total revenue growth, rising 2.6 percent year over year for Q4.

Zoom also highlighted that AI Companion has already generated 7.2 million meeting summaries and outlined how its AI-first capabilities powered an impressive quarter (and year) for its Contact Centre business.

Kelly Steckelberg, CFO at Zoom, commented in the earnings call:

Zoom AI Companion has grown tremendously in just five months with over 510,000 accounts enabled and 7.2 million meeting summaries created as of the close of FY ’24. We are excited about the strong growth across these new products and the benefits they drive for our customers.”

Eric Yuan, Zoom Founder and CEO, also stressed how AI Companion had been integrated across Zoom’s portfolio of products.

“Zoom AI Companion, our generative AI assistant, empowers customers and employees with enhanced productivity, team effectiveness, and skills,” said Yuan. “Since its launch only five months ago, we expanded the AI Companion to six Zoom products, all included at no additional cost to licensed users. But we are far from done. Our future roadmap to AI is 100 percent guided by driving customer value.”

Zoom reported an almost 300 percent increase in Zoom Contact Center licenses for Q4, which Steckelberg explained as illustrating not only a significant number of new customers but also an expanded average deal size.

Among other major operational successes was steady growth for Zoom Phone — Zoom Phone customers with 10,000 or more seats grew 27 percent year over year to 95. Another was the payoff for the Workvivo acquisition and its subsequent integration into the Zoom interface, with the vendor saying it upsold a Fortune 10 company and long-standing Zoom customer on Workvivo to make it the latter’s biggest customer to date, while a global bank and long-term Workvivo customer signed up for the broader Zoom platform.

A third key operational success was Zoom Team Chat usage, which grew 130 percent across its paid accounts. Its migration tool to streamline the transition recorded a 400 percent increase in downloads over the past six months.

“As Zoom becomes a full workplace solution, we are seeing customers migrate from other chat products onto Zoom Team Chat,” Yuan annotated. “Customers appreciate the improved user experiences and enhanced collaboration driven by our Zoom Team Chat product, as well as the cost efficiencies realized by consolidating their communications and collaboration solutions onto Zoom.”

Beyond the quarterly revenue increase, other key financial figures for Q4 included enterprise revenue reported at $667.3 million, up 4.9 percent year over year, while online revenue was $479.2 million, down 0.5 percent year over year.

Non-GAAP income from operations grew by 10 percent year over year to $444 million, exceeding the high end of Zoom’s guidance, while non-GAAP gross margin Q4 was 79.2 percent, lower than 79.8 percent in Q4 of 2022, which Zoom attributed to its investment in AI Companion.

Net cash generated from operating activities amounted to $351.2 million, marking a notable increase of 66 percent compared to the same period in the fiscal year 2023, at $211.6 million.

A Steady FY24 for Zoom

Given ongoing macroeconomic uncertainty, FY24 was a steady one for Zoom.

Total revenue for the fiscal year was $4,527.2 million, up 3.1 percent year over year. Enterprise revenue was $2,619.3 million, up 8.7 percent year over year, while Online revenue decreased to $1,907.9 million, down 3.8 percent year over year.

Non-GAAP net income for the year was $1,608 million, compared to $1,329.0 million for FY23.

Net cash from operating activities totalled $1,598.8 million for FY24, marking a 23.9 percent increase from $1,290.3 million from the previous year. Meanwhile, free cash flow amounted to $1,471.9 million, up by 24.1 percent from $1,186.4 million in the fiscal year 2023.

Zoom and AI

Zoom’s AI Companion launched last autumn to great fanfare, with Yuan also teasing that more news about updates for the solution will be revealed at next month’s Enterprise Connect.

Among the features of AI Companion, which hit the one million meeting summary milestone in October, are AI-powered meeting summaries to help users catch up on missed information, intelligent recording capabilities for meetings such as highlights, chapters and summaries, and in-meeting questions for the AI Companion based on the meeting transcript.

AI Companion can also draft messages, emails and notes and is available at no extra cost for paying subscribers.



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