Hello and welcome to Zoom's Q1 FY26 Earnings Release Webinar. As a reminder, today's webinar is being recorded. I will now hand things over to Charles Evislage, Head of Investor Relations. Charles, over to you. Thank you, Megan. Hello everyone and welcome to Zoom's Earnings video webinar for the first quarter of fiscal year 2026. I'm joined today by Zoom's founder and CEO, Eric Yuan, and Zoom's CFO, Michelle Chang. Our earnings release was issued today after the market closed and may be downloaded from the Investor Relations page at investors.zoom.com. Also on this page, you'll be able to find a copy of today's prepared remarks and a slide deck with financial highlights that, along with our earnings release, include a reconciliation of GAAP to non-GAAP financial results. These measures should not be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP. During this call, we will make forward-looking statements, including statements regarding our financial outlook for the second quarter and full fiscal year 2026, our expectations regarding financial and business trends, impacts from the macroeconomic environment, our market position, stock repurchase program opportunities, go-to-market initiatives, growth strategy and business aspirations, and product initiatives, including future product and feature releases and the expected benefits of such initiatives. These statements are only predictions that are based on what we believe today, and actual results may differ materially. These forward-looking statements are subject to risks and other factors that could affect our performance and financial results, which we discuss in detail in our filings with the SEC, including our annual report on Form 10-K and quarterly reports of Form 10-Q. Zoom assumes no obligation to update any forward-looking statements we may make on today's webinar. With that, let me turn the discussion over to Eric, who will be debuting his new custom avatar for Zoom Clips. Over to you, Eric. Thank you, Charles. Thank you, everyone, for joining us. Today, I'm using our new custom avatars for Zoom Clips with AI Companion to share my part of the earnings report. I'm proud to be among the first-ever CEOs to use an avatar in an earnings call. It's just one example of how Zoom is pushing the boundaries of collaboration and communication. At the same time, we know trust and security are essential. We take AI-generated content seriously and have built in strong safeguards to prevent misuse, protect user identities, and ensure avatars are used responsibly. Now, let's get into it. We delivered another solid quarter showcasing the power of our platform and innovation engine in helping customers navigate short-term challenges with greater efficiency while positioning them for long-term success. Through AI-powered innovation, Zoom is redefining modern work and delivering major cost savings and productivity gains for our customers. We had a tremendous quarter of innovation and launched several agentic AI innovations that advance our vision of intelligent productivity. Zoom Tasks helps surface, manage, and complete tasks across Zoom Workplace to get more done, bringing tasks together in a centralized management tab. Our new Calendar Manager allows you to ask AI Companion to schedule meetings on your behalf. Soon, it will be able to optimize scheduling by suggesting time slots, resolving conflicts, managing meeting updates, and proactively blocking focus time. We also made custom AI Companion Zoom Workplace for Frontline and Zoom Workplace for Clinicians generally available in Q1. Adoption of Zoom AI Companion continues to grow, with monthly active users up nearly 40% quarter over quarter. Just last week, Raymond James shared in a press release how they are rolling out AI Companion meeting summaries firmwide. Zoom's cutting-edge AI capabilities will enable financial advisors to offload time-consuming administrative work, allowing them to dedicate more time to what truly matters, nurturing client relationships and delivering strategic financial guidance. AI Companion usage is quickly expanding far beyond summarizing your meetings to helping you answer questions, schedule and prepare for meetings, search through information, build content, and catch up, freeing you up to focus on higher-impact work. While we continue providing tremendous AI value at no additional cost to users with a paid license, we're now monetizing through custom AI Companion. Though only weeks in market, we're seeing strong enthusiasm from several Global 2000 trial customers who are especially excited about features like bring your own dictionary and index, meeting summary templates, and our Jira integration. We're also rolling out custom AI Companion internally to allow Zoomies to get immediate answers from our custom knowledge bases and empower them across a range of skills specific to their function. These milestones in our agentic vision exemplify how we're helping customers stay ahead through continuous innovation focused on delivering real business value. Zoom Workplace continues to drive value for customers and drive customers to adopt other solutions within our growing platform. In Q1, the 2024 NBA champion Boston Celtics doubled down on Zoom. As longtime Zoom Meetings users, the Celtics appreciated Zoom's unique balance between simplicity and rapid innovation and chose to upgrade to Zoom Workplace Enterprise Plus, including Zoom Phone. The game did not end there. In overtime, the Celtics decided to modernize their employee intranet with a custom-branded Workvivo employee experience solution designed just for their organization. We also landed a leading financial institution who selected the Zoom Collaboration Experience platform in an over $1 million ARR deal. This allowed them to simplify their tech stack and reduce costs by moving away from Teams and other third-party solutions. Beyond costs, they bought into our Better Together vision that unites the customer experience and collaboration experience under one AI-first platform. Discussions are well underway to upsell them to the Zoom Customer Experience platform. Zoom Phone continues to perform strongly, with revenue growing in the mid-teens. It is also opening new markets for Zoom by integrating seamlessly with other productivity suites and delivering a best-in-class AI-first voice experience. The adoption of Zoom Phone integration with Microsoft Teams has grown significantly, showing how we can meet customers where they are and add value within their existing tech stack. We continue to drive encouraging results across our high-growth products that are positioned to target lines of business. Our customer experience offering has rapidly evolved since its launch just over three years ago, transforming how customer-facing teams engage with their end users. In Q1, the number of Zoom Contact Center customers grew 65% year over year, and Zoom Virtual Agent landed its largest deal to date as an upsell to Contact Center. Altogether, Zoom Customer Experience is a triple-digit million ARR business, growing in high double digits. In Q1, we were pleased to see Mimecast, a leading cybersecurity company, transforming the way businesses manage and secure human risk, expand their partnership with Zoom. Already Zoom Workplace and Phone users, Mimecast valued the simplicity and interoperability of our unified platform. They've now chosen the Zoom Contact Center Elite bundle with quality management to further modernize how they communicate and collaborate with their customers. Zoom Revenue Accelerator, our AI-first sales enablement and conversational intelligence solution, continues to deliver strong results for revenue teams. In Q1, licenses grew 72% year over year, reflecting growing traction. We landed Goosehead Insurance, a major U.S. insurance distributor with over 2,500 producing insurance agents. They started as a Zoom Phone customer in 2023. In Q1, they decided to add Zoom Revenue Accelerator in order to further empower their large team of insurance sales reps to dial into additional deal-focused AI features to drive higher win rates and faster deal cycles. Our employee experience platform Workvivo transforms the way HR departments engage their employee bases and build culture. Total Workvivo customer count in Q1 grew 106% year over year, an acceleration from the past two quarters. This strong performance was driven in part by our Meta partnership. Last month, we welcomed Kim Storin as our new Chief Marketing Officer. With her extensive enterprise experience and proven track record of success, Kim will help us amplify Zoom's compelling value proposition and brand story to drive deeper resonance with customers. We continue to see strong momentum as we expand our channel. Just yesterday, we announced a new strategic partnership with Bell Canada. In addition, we completed a major transformation of our channel systems and processes in Q1, making it easier for partners to scale their businesses with us. Our channel investments drove some amazing wins in Q1. DOCS Dermatology Group, a leading U.S. dermatology roll-up, came to us through a trusted channel partner, going all in on the Zoom platform as a brand new customer. DOCS chose the Zoom Contact Center Elite package for the ability to manage the complexities of their appointment management, billing, and inbound patient requests through our simple, intuitive interfaces and our team's ability to rapidly innovate a powerful integration to one of their key tools. Recognizing the importance of uniting their employee and patient experiences under one seamlessly integrated modern platform, they also chose Zoom Phone along with Zoom Workplace. As we look ahead, we continue to double down on driving value for customers as they navigate an uncertain macro environment. Our AI-first strategy positions us to help customers stay ahead as technology evolves, while our platform approach delivers compelling TCO advantages. Now, let me hand it over to Michelle to take us through the financial results. Thank you, Eric, and hello, everyone. I'm excited to be here with you today. Let's dive into the financial results. In Q1, total revenue grew approximately 3% year over year to $1.175 billion. This result was $8 million above the high end of our guidance. As a reminder, Q1 of 2026 had one fewer day than Q1 of 2025. Our enterprise revenue grew approximately 6% year over year, and now represents 60% of our total revenue, up 2 percentage points year over year. We continue to see encouraging signs of stability in our online business. In Q1, average monthly churn was 2.8%, a 40 basis points improvement year over year, and our lowest ever churn rate for a first quarter. In our enterprise business, we saw 8% year over year in the number of customers contributing more than $100,000 in trailing 12-month revenue. These customers now make up 32% of our total revenue, up 2 percentage points year over year. Our trailing 12-month net dollar expansion rate for enterprise customers in Q1 held steady quarter over quarter at 98%. Pivoting to our growth internationally, our Americas revenue grew 4% year over year, EMEA grew 1%, and APAC grew 2%. Moving to our non-GAAP results, which, as a reminder, excludes stock-based compensation expense and associated payroll taxes, acquisition-related expenses, net gains or losses on strategic investments, and all associated tax effects. Non-GAAP gross margin in Q1 was 79.2%, slightly lower than Q1 of last year as we continue to invest in AI. We remain focused on driving efficiencies and delivering AI capabilities in a scalable, cost-effective way. We continue to reiterate our goal of reaching an 80% non-GAAP gross margin over the long term. Non-GAAP income from operations grew 2% year over year to $467 million, exceeding the high end of our guidance by $22 million. Non-GAAP operating margin for Q1 was 39.8%, down 23 basis points from Q1 of last year. The margin decline was in line with expectations and due to changes in our bonus structure and investments in AI. Non-GAAP diluted net income per share in Q1 was $1.43 on approximately $313 million non-GAAP diluted weighted average shares outstanding. This result was 12 cents above the high end of our guidance and 8 cents higher than Q1 of last year. The EPS performance was due to strong business results as well as a reduction in diluted weighted average shares outstanding, driven by our focus on addressing dilution through our buyback and our stock compensation efforts. Turning to the balance sheet, deferred revenue at the end of the period grew 5% year over year to $1.43 billion, in line with the high end of our previously provided range. The growth was driven by business performance as well as continued refinement of our discounting strategy. In Q2, we expect deferred revenue to be at 4-5% year over year. Looking at both our billed and unbilled contracts, our RPO increased 6% year over year to approximately $3.9 billion. We expect to recognize 61% of the total RPO as revenue over the next 12 months, up from 59% in Q1 of last year. Operating cash flow in Q1 was $489 million, representing an operating cash flow margin of 41.6%. Free cash flow in the quarter was $463 million, representing a free cash flow margin of 39.4%. The declines on the year-over-year basis were due to the timing of tax payments. We ended the quarter with approximately $7.8 billion in cash, cash equivalents, and marketable securities, excluding restricted cash. In Q1, we accelerated execution of our existing $2.7 billion share buyback plan, purchasing 5.6 million shares for $418 million, an increase of 1.3 million shares quarter over quarter. The increasing pace of our share repurchase plan over the course of our buyback authorization has reduced our common stock outstanding and underscores our ongoing commitment to delivering value to our shareholders. As we pivot to the outlook, we're pleased to raise our full-year revenue guidance by $15 million or $5 million on a constant currency basis. We now expect revenue to be in the range of $4.8-$4.81 billion, which represents approximately 3% year-over-year growth at the midpoint or 3.2% year-over-year growth on a constant currency basis. This is the net result of increasing our online outlook by $10-$15 million due to a $1 price increase for our monthly products, reflecting increased product value to our customers. This is offset by a more prudent outlook in our enterprise business due to the more challenging and uncertain macroeconomic environment. We're pleased to raise our profitability outlook for the full year of FY 2026 as well. We now expect our non-GAAP operating income to be in the range of $1.865-$1.875 billion, representing an operating margin of 38.9% at the midpoint. We are also pleased to raise our outlook for non-GAAP earnings per share for FY 2026 from $5.56 to $5.59, based on approximately 312 million shares outstanding. We continue to expect free cash flow for FY 2026 to be in the range of $1.68-$1.72 billion. For Q2, we expect revenue to be in the range of $1.195 billion-$1.2 billion. This represents approximately 3% year-over-year growth at the midpoint or 3.1% year-over-year growth on a constant currency basis. We expect non-GAAP operating income to be in the range of $460 million-$465 million, representing an operating margin of 38.6% at the midpoint. Our outlook for non-GAAP earnings per share is $1.36-$1.37, based on approximately 310 million shares outstanding. As a reminder, future share repurchases are not reflected in the share count and EPS guidance. In closing, as Eric highlighted, we're proud of the rapid pace of innovation towards our AI vision, which is delivering real value to our customers. At the same time, we remain focused on accelerating our growth while delivering shareholder value through disciplined operations and responsible capital allocation. Thank you to our incredible Zoom team, customers, community, and investors for your trust and support. Megan, please cue the first question. Thank you, Michelle. We will now begin the Q&A portion of the call. When I read your name, please turn on your video and unmute. As a reminder, in an effort to hear from everyone, please limit yourself to only one question. Our first question will come from Siti Panigrahi with Mizuho. Great. Thank you so much. Eric, it's great to see your avatar there. I want to ask you about the Zoom AI Companion. It's good to see that it's growing 40%, MAU growing 40% Q over Q. Now that you embed base-level AI as part of your paid subscription, what kind of adoption are you seeing in terms of the SMB segment, even seeing free-to-pay migration? Are you seeing anything like that? As you are launching also your paid AI Companion SKU, how should we think about the adoption and revenue contribution there? Yeah, Siri, thank you. First of all, I truly love my AI generator avatar. I think we are going to continue using that. I can tell you I like that experience a lot. Back to your question about AI Companion, first of all, you look at the number of active users and look at Q4 and Q1, and there's five times more. Meaning is pretty healthy. More and more customers, they enable the AI Companion, realize the value. One example, like Raymond James, right? They leverage Zoom AI Companion and features like making summary can improve their productivity. It's pretty accurate and with actionable insights as well. Overall, I think more and more customers are going to enable AI Companion. In terms of customized AI Companion and also the monetization, I think we already have a few customers prospect testing that now. It is pretty powerful. Of course, we can integrate it with your company's data index and data as well, and also like a dictionary, and also support a customized meeting summary template and your customized AI avatar as well. I think with more and more customers, they play around, realize the value. I am pretty sure the customer AI Companion can help us and monetize more. Okay, great. Thank you. Thank you. Our next question will come from Meta Marshall with Morgan Stanley. Great. Thank you. And congrats on the quarter. Appreciated the, sorry, statistics about kind of the increased traction with kind of the higher price SKUs on the AI portion of Contact Center. Just any statistics you can give on just kind of either how customers are starting with Contact Center with the higher price SKUs, with the kind of virtual agents, or just anything to add there. Then second, on your kind of more cautious outlook on enterprise, is that just based on elongating deal cycles or is that based on just kind of more cautious outlook on seats? Thanks. Yeah, Michelle, I would address the first one and you address the second one. If you look at the Zoom Contact Center, which is our customer experience platform, and Zoom Virtual Agent is a very important part of that. If you look at Q1, Q1 is the largest quarter in terms of ARR contribution. If you look at the number of the upsells of Zoom Virtual Agent, it's the largest quarter ever. Meaning we do have lots of upsell opportunity to sell Zoom Virtual Agent to our existing stock base. Also, take Zoom, for example, right? We We also deploy our contact center for a long time. When our team enabled Zoom Virtual Agent, we do see the huge value because we use two metrics to measure how successful it is. One is the CSAT. Another one is a self-service rate. After we deploy the Zoom Virtual Agent, it does help us a lot because CSAT number is 70. And guess what? The self-service rate is 97%, meaning 97% of those tickets resolved very well without any human agent involved, right? It is a huge value. We do see more and more customers wanting to test out Zoom Virtual Agent. At the same time, literally by the end of this month, we are going to launch our new version of Zoom Virtual Agent with a lot of new features, plus voice agent will be part of that as well. I think more upsell opportunity and also more new opportunities as well and to double down on Zoom Virtual Agent, which is based on our AI Companion technology. Maybe from my side, two quick comments on Contact Center customer experience, and then I'll move over to the question on the guide. Two things that I think we're seeing increasingly in terms of our customer buying behavior and customer experience is customers going straight to the elite just because of all the AI value that is in that. Maybe the other pattern that I think is clear in our deals is that this concept of better together, that frequently customers are wanting a communication and collaboration platform together with a customer experience platform. We see that as a real strong theme as to why Zoom's winning. I wanted to add that in. On your question on the color on the enterprise, let me start by just saying that broadly, across online and enterprise, the majority of the business in Q1 saw no change in buying behavior, no change in demand, still strong demand. Our fundamentals, as you see in all of the stats that we produce, be it record low churn in online to our customer deal size of our $100,000 in enterprise to the strength of so many of the expansive TAM products that we have, still so strong. What we saw in terms of my comments about primarily prudence going forward, what we saw in Q1 in a couple of customer scenarios in larger US customers where there was just more prudent sales elongation, more scrutiny on deal terms, no losses, but just, again, a bit of a sales elongation and more scrutiny. Look, we feel that going into Q2 and going into the second half, we have a great TCO and business value story. That is really where we are pivoting to make sure that we are really getting out and landing that message with our customers. Great. Thanks. Our next question comes from Arjun Bhatia with William Blair. Perfect. Thank you. I want to tell my congrats on the strong start for the year here, especially on the Contact Center side. Eric, one thing for you, maybe on a different topic. You mentioned the Teams integration with Zoom Phone, but I'm curious how the competitive dynamics are changing on the core video meeting solution, especially now that you've had AI Companion out in the market for a little while. We're seeing obviously adoption increase, Teams is unbundled, and they're charging for AI capabilities. Are you starting to see it change the competitive tides, and what is it doing in terms of new customer acquisition on the core platform? Yeah, it's a great question. Look at the value of Zoom offering. First of all, employees really love Zoom experience. If you do any survey, right, in any companies, no matter which solution they deploy, if you let an employee make a decision, we have a high confidence they all will choose Zoom platform. The second thing is look at the total cost of ownership. In particular, look at the AI. Our AI Companion is part of our offering. Compared with other vendors who would like to charge a customer, it's a lot per user per month. Meaning for those customers who truly care about employee experience, truly deep dive to understand the total cost of ownership of those offerings, they are going to keep using Zoom or go back to Zoom platform. In one example, like one big fintech company in Q1, they dropped the Teams in a suite to Zoom platform because they like the Zoom experience with a lot of innovations, much more reliable, and a great user interface they are familiar with. I think as long as we keep improving the product experience, make sure Zoom is an employee choice, I think we will see more and more opportunities. Also, look at the entire workplace. We are already way beyond meetings, right? The value of a workplace can deliver more and more and value to customers. We do see some more opportunities ahead of us. All right. Good to hear. Thank you. The one I might just quickly add in is we're seeing increasingly with the Teams integration, many more customers come to us that way. To your question about are we seeing a change in deal, we saw a lot of wins that we're proud of in Q1 that were Teams integration. Perfect. Thank you so much. Thank you. Next up, we have Alex Zukin from Wolfe Research. Hey, guys. Thanks for taking my question. It's Ivan here for Alex, obviously. Congrats on the solid quarter. I want to ask another one on the Zoom Contact Center, which I think was super interesting. It's great to see this new disclosure that it's like a triple-digit million ARR business growing in high double digits, if I'm not mistaken. I think you used to disclose year-on-year growth in terms of the number of customers with larger than $100,000 ARR. Can you provide a little more color in terms of the deal sizes that you're seeing that's driving that growth? Maybe more broadly, what are you seeing in the competitive environment for CCAS and sort of how are you positioning Zoom and what sort of win rates are you seeing there, more greenfield or more replacement deals? Thank you, guys. Sure. I can start. Michelle, feel free to chime in. I think look at the total number of contacts and customers year over year. We do see around 65% growth. Look at the top 10 deals. None of the deals are replacing existing cloud-based vendors, cloud-based solutions. You look at the top 10 deals, I think if I recall correctly, six or seven are joined by the channels. Meaning the channels really help us and also replace other cloud-based vendors. Because not only do we offer a lot of innovations and features, but also seamlessly integrated with our phone platform as well, Zoom Virtual Agent part of that. That's the reason why customers, they see the value of our Zoom Contact Center. I mean, the only other thing, I think those are the metrics that we give for disclosure. The other one might just be to thread back in the dialogue earlier on the Elite SKU. We are seeing great traction. I think it is a 10% mix shift year over year towards licenses to our Elite SKU. We are really proud and see a lot of momentum towards our AI-first solution. Also, at the same time, I want to share with you, actually, look at a lot of enterprise customers. Their contact center, guess what, is still on prem. A lot of opportunities for Zoom, for other cloud-based contact center vendors as well. In particular, you look at the AI-based virtual agent, and also it's also playing a big role to drive the future growth. Yes. Thank you. Thank you. Our next question is from Michael Funk with Bank of America. Hey, Eric, hey, Michelle. This is Matt Bullock on for Mike Funk, clearly. Thanks for taking the question. I'd love some additional color on the early reception from customers to the online monthly Pro pricing increase. Seems pretty modest, but would be interested in color on pricing sensitivity, any variance in customer churn for that cohort. Assuming this pricing increase goes well, could we start to see pricing be more of a lever in the online business segment considering all the positive trends with churn? Maybe I can take that one, Eric. Yes. One thing that I think is really important just to note, and you said it is, we feel like it's a modest increase, but one that reflects really incremental value delivered to the customer. That's sort of the bar that we hold ourselves. Whether you think about that as sort of the entirety of the platform, the AI, but also want to call out that with our price increase in particular, we doubled the storage limits. Look, it's a very different online business, I would say, than one that we had maybe in the past. The evidence points that I look at that under are obviously the record low churn that we continue to see quarter after quarter, the mix of our customers that have been with us over 16 months, the percentage that are buying with us annually. We feel like we're just in a different place. We always take price increases very thoughtfully. I would say this isn't the first one we've done, but no plans to do others at this stage. Got it. Thank you. Next up, we'll hear from William Power with Baird. Okay, great. Thanks for taking the question. I actually want to circle back on our line and kind of the earlier macro discussion. I guess just trying to understand the levels of conservatism built into the online segment. You're trying to build in a little more conservatism, it sounds like, on the enterprise side. Why wouldn't churn maybe start to increase a little bit on online relative to where you've been? I guess maybe just probably what are kind of the assumptions there? I have a second question. Yeah. Our outlook really reflects, look, it's a more turbulent world than it was maybe the last time we talked to you. Yeah, just to echo my earlier comments, we saw strong demand across our business. We did not see any impact of macro to online and as such have not sort of reflected that in our outlook. It was in those specific customer scenarios in the enterprise where we decided to take a prudent approach to how we thought about outlook and guide from there. Okay. I want to ask a question on Zoom Phone. You provided the disclosure that I think that's growing mid-teens, which I think looks like it's above industry growth rates based on other peers and whatnot. It suggests you're continuing to take share. On the other hand, still a really big market in theory in terms of number of business phones out there. I wonder if you can just kind of address what you're seeing competitively and what the forward growth outlook opportunity is. Is this a mid-teens growth from here? Can it actually reaccelerate? What's kind of the opportunity still there? From a high level in terms of opportunity, look at the total installed phone seats. The number of on-prem seats is still higher than cloud-based seats. I think it's around 150 million still on-prem seats. It's still a lot of opportunities. Those customers in the next few years, they still need to migrate to the modern cloud-based solution. We have a much better position with our entire workplace platform integration, open system. That's the reason why our growth rate of a phone is higher than other cloud-based phone service providers. Okay. Maybe just to add in, there's opportunity for Zoom on both. We have a lot of strong partnerships, like the Mitel partnership is a big one for us in the on-prem stuff. We certainly have go-to-market motions focused on competitive takeouts on the cloud. As well as, I might just say across both, we've been talking about for a couple of earning cycles here, just an investment and a maturation in our channel motion, which also will be advantageous to our phone business. We think about it as a big opportunity. Maybe the other one that I might call out is the new partnership with Bell Canada. Increasingly, we are seeing AI drive deals and seeing more new customers to Zoom come through phone. Things that we're encouraged about. Okay. Thank you. Our next question is from Samad Samana with Jefferies. Hi. All right. Thank you for taking my questions. It's good to see everybody. Maybe first just on Workvivo, the customer growth there is really strong. Eric, you called that an acceleration in your prepared remarks. How should we think about maybe Meta migrations as a piece of that mix? Can you just remind us at what point you'll lap the Meta benefits and maybe how durable the growth there is? I have one follow-up for Michelle afterward. Michelle, you want to take that? Yeah. Look, I would say that we grow from both the Meta partnership as well as before. That was consistent before the partnership was in place. Certainly, we're focused heavily on capitalizing against that Meta migration. I think we said before that it's towards the second half of the year that that sort of opportunity will normalize. What was the next one? Yeah. Yeah. You look at a number of. Sorry, please go ahead, Eric. Apologize. Just to add on to what Michelle said, you look at a number of the accounts, and I mean the Workvivo accounts year over year, it's more than 100% growth. A huge opportunities, not only driven by the Meta, the migrated customers, but also new opportunity as well. Maybe just to punctuate Eric's comments, 90% of our Workvivo customers, again, are new to Zoom. It is a really great way for us to introduce the breadth of our platform as well to real strong customer and brand names at market. Understood. Maybe Michelle, just on the buyback acceleration, is that more of a reflection of opportunistic because of what happened with market conditions in F1Q? Or can we take that as a signal that the buyback will be somewhere closer to these levels because that is the way that you guys are thinking about deploying the cash, at least for the short-term duration? Just help us understand how we should think about the magnitude given it was the biggest buyback activity that you have had. Yep. Yeah. I would say you saw in our two announcements, the one I doubled down on when I started, that this is going to be something that's important to Zoom. Of that original 2.7 tranche, the two together, we have about 1.2 remaining. The way that I would think about Q1 is really that it reflects the reinforcement of confidence across myself, Eric, and the board. Certainly, we intentionally kind of went after acceleration here, but we remain committed to what we said before, which is the intention and expectation that we will go through the remaining $1.2 billion in fiscal 2026. Great. Thank you both for taking my questions. Appreciate it. Thank you. Our next question comes from Tyler Radke with Citi. Hi, good afternoon. Thanks for taking the questions. Wanted to go back on the billings outlook for the next quarter. You talked about some of the dynamics on the enterprise side of the business, but I'm wondering if you could sort of help us understand when you started to see some of these macro impacts layer into the business, how performance has been throughout kind of the month of April as well as May. As you think about the online business, how are you thinking about the new customer addition motion? I know churn was ahead of expectations, which was good to see, but how sensitive is that new customer acquisition motion to the macro? If you could comment on what you're seeing there. Yeah. First, with the comment on when we saw the enterprise, I would say that we saw deals sort of pausing and elongation throughout the quarter, but certainly the bulk of our volume in enterprise happens towards the tail end of the quarter and things more so then. To your online question of new customers, we had a strong quarter in terms of new customers as well as churn. That is why I sort of say no impact of macro or no signs of macro impacting. All right. Thank you. Next up, we'll hear from James Fish with Piper Sandler. Hey, guys. Thanks for the question here. Just first, on the channel transformation, what were some of the changes put in place and what's been some of the early feedback with that? Yeah. I can answer that, and then Eric, feel free to jump in. Look, I would say first and foremost, it is about expanding our partner ecosystem. It is about changing some of the channel incentives and really doubling down on those. In particular, one of the things that we had been talking about with our partner ecosystem was just the need to help them get from quote to cash faster. You may have seen that there was an article in the Channel Press about some efforts that we have made to really take that time from hours to minutes. I would say broadly, our investments in the channel fall across those three things. I'd just say, look, the channel investments are very closely targeted towards our phone and contact center business, where naturally they have both the ability to supplement what customers need as well as the ability to influence sales. We're pleased with what we see in terms of the number of deals, the percentage of deals in both contact center and phone that are channel-led or heavily channel-influenced. Got it. I could follow up actually on Samad's prior question. It's nice to see the $100 million mark. It seems like most of the success you guys talk about, though, is coming from that Zoom ecosystem customer, meaning they already got Workplace and Phone together. Is there a way to understand what I'm guessing is still a very low percentage in terms of the penetration of Contact Center into that sort of combined base that uses Workplace and Phone together? Thanks. I would say we don't disclose that as a metric, James. What I would say is we see both bidirectional. My comments earlier is that we find that really to be a differentiator with customers where the integrations of being able to go out and talk to customers, come back in and resolve problems in-house, we find that to be a real big win for us customer-wise. Thank you. Our next question comes from Alan Verkovsky with Scotiabank. Hey, thank you for taking the question. Congrats on all the product innovation. Michelle, I wanted to just double-click on the revised enterprise revenue outlook. You mentioned there was some deal elongation that you saw in the quarter. Just to be clear, are you guiding for a wider range of outcomes such that if the macro trends were to remain consistent, then you could potentially see more upside through the rest of the year? Could you also just update us on your updated timeline for when we could see NRR potentially get back to 100%? Yeah. Let me start with the first one. Our outlook implies a consistent kind of macro environment relative to what we saw in Q1. That is the way to think about the guide. In terms of net dollar expansion, I would say we are pleased with the stability that we saw. It has been something that we have seen come in over the last four quarters. It is certainly a foundation for us in terms of expansion. Our numbers have been in line with guidance. Great. Thank you. Our next question comes from Katherine Trebnik with Rosenblatt Securities. Oh, thank you for taking my question. Since Jim Fish took my channel question, I'll ask about your international. Can you update us on that was a big focus is to do international. People I've talked to said you staff quite a bit in the U.K. Can you give us any idea of some of the products or which pieces of the business you're focusing on internationally? Thanks. Yeah, I can take that. Let me say that our strategy is a global one, Katherine. I think the way that we go to market, the products that we are working on, even our push in channel, our go-to-market and our product strategy are consistent globally. Maybe let me just say a little bit more of what we see really resonating in our EMEA business is really that better together and full buying into the platform of both that communication and collaboration experience together with the customer experience. Maybe the other one that I would throw in is we're really seeing employee experience hunt quite well in EMEA. We're encouraged about, again, the broad growth thesis resonating in Europe as well. All right. Thank you. Next up, we'll hear from Peter Weed with Bernstein. Peter, are you there? We can move ahead. Peter needs a minute. All right. We're going to move ahead here. Next up, we'll hear from Tom Blakey with Cantor Fitzgerald. Great. Thanks for taking my questions. Curious just maybe in terms of the elongation, Michelle, can you talk about maybe any trends in downsells in enterprise if you've seen that in Q1, just kind of counterbalancing the reported results with some very strong CCAS and Zoom Phone. Then just maybe an update, second question, I want to hear about just reaching that kind of 10%. It's not a line in the sand, but we talked maybe a year or so ago or longer ago that CCAS would reach about 10% of revenue at the same kind of time horizon as Phone. Just like to get an update on that, where CCAS sits. Thank you. Yeah. To your first question, we continue to see year-over-year improvement in churn in enterprise as well as continued record low churn rate in online. I think in summary, maybe the color I might give under that is that I think increasingly when you look at sort of competitive themes, I think they are broadening out. It is, again, that holistic value, the vision of kind of better together across the collaboration as well as customer experience. In some, we see the boomerangs with the customer and customer love that Eric mentioned in some of ours. In others, it is the pace of innovation and the dedication Zoom has to customers. In others, it is a coexist and sort of winning in a different way with things like the Teams integration. I think we feel good not only about the meta trend, but some of the color that you see in the deals emerging. Then to your second question around 10% and disclosures and CCAS, we've tried to add some dimensions here for investors, not only on the customer account, but some of the elite SKU dimensions as well as the triple-digit ARR. We'll leave it at that for now. Thank you. Our next question is from Patrick Walravens with Citizens. Hey there. This is Austin Cole on for Pat Walravens. Eric, it was really cool to see the AI avatar. Maybe one day soon, more of us will be on this call using AI avatars. That is actually what I wanted to ask you about is what kind of high-level trends maybe you see taking place or conversations with customers right now that give you kind of confidence in AI's role, both in communication and how they're getting work done. Kind of a broad question there, but maybe even specifically, what are the use cases for these avatars and how are you using this stuff internally to shape the work? Yes. Great question. Again, for the first time in history, right? We let the AI general avatar participate in the earnings call, right? Again, I really love that experience. We're going to keep improving our Eclipse product. Back to your question about the AI and AI adoption. I think first of all, look at every service, right? We offer to the customer how to leverage AI to improve their product. All the basic core features are already done for a while, like meeting summary, composer chat message, and so on and so forth. Now our customer really wants to understand what we can do to integrate with their existing system because they are building the agent and there are other vendors also building agents. We also build agents, right? How to make sure our agent, right? AI company, agentic framework, customized AI Companion studio to build our agent, how to interoperate with other agents. Like recently we announced integration with ServiceNow, with Jira as well. Essentially, we would like to transform our business from being a collaboration or communication company to be a system of actions. Like after this meeting, Zoom world, right? We not only have a summary, but also we have tasks, action items. And the AI agent, we automatically, let's say, created a Jira ticket and to follow, to track, right? It kind of becomes an entire business workflow. Without an AI agent, it is really hard. You need to manually drive this and integrate other systems. It is not feasible. For now, customers look at how to automate everything with agentic framework because all those agents can talk to each other with the A2A protocol and also the MSCP protocol, right? That's the reason why we feel very excited. Together with other vendors, we can become a part of a business workflow. On that front, we're very excited. Great. Thank you. Thank you. Our next question is from Peter Levine with Evercore. Great. Thank you for squeezing me in here. Maybe just to Michelle, you guys are talking a lot more about frontline workers. Can you maybe just help us understand what that product is? Is it really going after the Microsoft F1 or F3 SKU? Maybe just help us understand what the intentions there are for frontline. Then second, with AI Companion 2.0, there is the monetization for those that want to customize their own AI agents. Is there revenue coming in this year from that product? It's probably more second half, but can you just help us understand what you're expecting from that? Thank you. Sure. Let me start with frontline worker. The way to think about that is, I mean, let me start with the market opportunity broadly. 80% of the workers in the world are frontline workers, and yet only 1% of the SaaS spend is on them. What that tells us, what our customers tell us, is there's a lot of value that they need. This product was really born out of that. Think about what the product does in, sort of, I would call it three buckets. It's on-shift communications, it's workforce management, and it's AI assistance, sort of the flow of frontline worker work. That's kind of how to think about it. It just came into market. We are pleased. We've already closed several weeks in post-GA closed deals. We're excited with the interest that we see, in particular in industries like healthcare, retail, and manufacturing where Zoom is strong. To your second question on custom AI Companion, I would say we're equally excited. Different use case there. That's the two I talked about earlier. I won't repeat. Seeing also excitement in the way that you should think about our H2 outlook for all of these is that we factored in sort of what we see and measured things. Given the size and scale of our business, it won't be a movable number in FY 2026. We'll just continue to update investors as we go through these earnings calls. Great. Thank you very much. Our final question will come from Matthew Harrigan with Benchmark. Oh, thank you. Now that you're very practiced in creating SLMs, what are you seeing? It feels like a lot of people are taking kind of a Russian army approach, which is more and more buying from NVIDIA. As you improve the algos and you get more clever on the math, I mean, how's that affecting your business, even on the cost side as well as the opportunity side? Thanks. Eric, do you want to take that one? Sure, sure. Our AI approach is a federated AI approach, meaning we have our own large language models. Some customers just want to standardize our own model. At the same time, we integrate seamlessly with Llama, with OpenAI, Anthropic, and just a federated AI approach. We also, for sure, will leverage NVIDIA and also leverage Cloud GPU. It is just very standard, right? How to optimize our cost at the same time, offer the value. The reason why we can offer the free Zoom AI Companion to our customers is because of optimization. That works so well. In terms of value and cost, we can offer that. The customized AI Companion is different. It is more like an enterprise, the data or data index integration. That is why it is different. It is more like not on AI cost front. It's more like a system integration, a lot of other things. If you look at just the pure on AI front, we are very competitive because we always abandon the cost and also the value. We have a very large team working on the optimization. Thanks, Eric. Nice avatar. Thank you. Appreciate it. Next earnings call will be much better. Thank you. This concludes the Q&A portion of today's call. I'll turn it back over to Eric for closing remarks. Thank you all. I'm really appreciative for your time. Thank you for all those investors who trust us. We are going to do all we can to truly deliver happiness to you all. Thank you. Appreciate it. Thank you. Thank you, Eric and Michelle. This concludes today's earnings call. Thank you all for attending and have a great rest of your day.