Dive Brief:
- Zoom’s enterprise customer base grew 9% year-over-year, up to approximately 215,900 organizations, the company said during its Q1 2024 earnings call Tuesday for the period ending April 30.
- Enterprise customers contributing more than $100,000 make up 29% of the company’s revenue, an increase of five percentage points compared to the previous fiscal year.
- Last week, the video communications provider also announced it invested in generative AI start-up Anthropic as part of a partnership that will let Zoom integrate Anthropic’s chatbot Claude into its suite of products.
Dive Insight:
Zoom knows what it feels like to capture the zeitgeist.
When companies had no other choice but to support remote work in 2020, Zoom’s revenue skyrocketed as the need for video conferencing tools reached fever pitch. It then normalized as enterprises shifted focus to rationalize spending.
Zoom's revenue growth levels out after pandemic surge
With the investment in Anthropic, Zoom is now tied to two of the biggest names in generative AI. In March, the company announced plans to integrate OpenAI’s large language model to generate Zoom Team Chat and email responses based on input from existing chats, email, phone and meeting threads.
Zoom has made two things clear: it values large enterprise customers and it’s focusing on AI. The recent earnings call illustrates the continued uptick in enterprise subscriber base as well as how its strategic focus on AI has played out so far.
“We plan to begin by layering Claude into our Contact Center portfolio, which includes Zoom Contact Center, Zoom Virtual Agent and now in-beta Zoom Workforce Engagement Management,” Zoom CEO Eric Yuan said during the Tuesday earnings call, according to a Seeking Alpha transcript.
The AI integration strategy lets Zoom pick and choose which capabilities or underlying technology to incorporate into its tech stack without going all in on a single vendor.
