Hello and welcome to Zoom's Q3 FY2026 Earnings Release webinar. As a reminder, today's webinar is being recorded. It is now my pleasure to introduce Charles Eveslage, Head of Investor Relations. Charles, over to you. Thank you, Megan. Hello everyone, and welcome to Zoom's earnings video webinar for the third 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. After this call, we will make forward-looking statements, including statements regarding our financial outlook for the fourth 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 on 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's giving his prepared remarks via Zoom Custom Avatar. Eric. Thank you, Charles. We delivered strong results this quarter with broad momentum across products, industries, and customer segments, from online to our largest enterprise accounts. This performance reflects the durability of our business, driven by the growing value we are delivering for customers as we evolve from a communications leader to an AI-first platform for work and customer experience. Our vision is to be the AI-first work platform for human connection. As we march towards this vision, we are focused on three priorities: elevating core products with AI, driving growth of new AI products, and scaling AI-first customer experience. Pivoting to our first priority at Zoomtopia, we unveiled AI Companion 3.0, our next-generation agentic AI that's transforming how work gets done. We're evolving Zoom into an AI-first system of action, going beyond summarization to be your agent to proactively prepare for meetings, follow up on tasks, and drive work forward. AI Companion runs on our federated AI architecture, which lets customers use Zoom's models alongside their own or trusted third-party models, unlike closed systems elsewhere. Spanning meetings, phone, chat, whiteboard, and soon the web, Zoom brings intelligent assistance wherever work happens across major platforms. Customers are responding. AI Companion adoption continued to surge more than four times year over year, underscoring demand for smarter, more seamless ways to work. In tandem with AI Companion growth, we saw continued strength across Zoom Workplace. Team Chat monthly active users rose 20% year over year. As the canvas for asynchronous work, chat turns meetings into persistent workspaces. With AI Companion, it provides summaries, composition tools, and easier search capabilities so customers can keep work in context, reduce app sprawl, and take action faster. Our employee experience offering continued to shine even as we lapped the strong momentum of our previous Meta partnership. Workvivo logos grew nearly 70% year over year to 1,225, with customers spanning mid-market up to the Fortune 10. Last, Zoom Phone surpassed 10 million paid seats early in Q3, marking a major milestone and reinforcing its leadership in unified communications. It continues to perform well with consistent ARR growth in the mid-teens and numerous sizable wins in financial services and healthcare. For example, Rothman Orthopedics, Platinum Dermatology, and a reputable clinic adopted Zoom Phone for its unified platform, advanced AI capabilities, and healthcare-specific integrations and compliance tools, enabling seamless collaboration and better patient care. AI isn't just bolstering our core; it's opening new revenue streams and deeper customer value through customization and automation. Two quarters in, Custom AI Companion is scaling with several Fortune 200 wins and broad interest. Oracle, already a major Zoom Workplace and Contact Center customer, chose to deepen its partnership with us this quarter. As one of the world's leaders in AI and enterprise technology, Oracle adopted Zoom Custom AI Companion to create powerful AI-powered assistants across its global workforce, helping employees turn everyday conversations into actionable insights. We were also delighted to see Salesforce deepen its partnership with Zoom by adding Custom AI Companion. Alongside horizontal momentum, we're extending AI into collaboration-adjacent verticals as well. In Q4, we agreed to acquire BrightHire, a leading AI-powered hiring intelligence platform that elevates every stage of the hiring process, enhancing one of the most critical business workflows while also strengthening our collaboration platform. The same AI innovation powering how teams collaborate is also transforming how companies engage their customers, and Zoom is at the center. Customer experience is one of our fastest-growing businesses and an important long-term growth vector for Zoom. In Q3, customer experience delivered a phenomenal quarter, with ARR continuing to grow in the high double digits. Early in the quarter, we were honored to be included in the 2025 Gartner Magic Quadrant for Contact Center as a Service only three years after launching Zoom Contact Center. Within customer experience, AI has become a clear differentiator, creating additional monetization opportunities. Nine of our top 10 CX deals involve paid AI, such as Zoom Virtual Agent or AI Expert Assist, as enterprises use Zoom to deliver faster, more personalized service. For example, SolarWinds, LegalShield, and Bromcom chose Zoom to replace fragmented legacy systems with one unified AI-first platform. They turned to Zoom for its integrated approach across workplace, phone, and contact center, and for the innovation of Virtual Agent 2.0, which helps simplify operations and enable faster, more intelligent customer engagement. We're encouraged by the rapid momentum of our CX portfolio, reflected in external recognition and customer wins, and driven by our AI differentiation and deep workplace integration. This progress advances our platform strategy to deliver a unified solution and expand long-term growth. In summary, we're executing a clear plan: AI-led innovation, platform expansion, and disciplined durable growth. We're pairing innovation with financial rigor, delivering strong profitability and cash flow while investing for long-term growth. With accelerating adoption and marquee enterprise partnerships, we're turning our AI momentum into measurable value for customers and shareholders. Now, let me turn it over to Michelle to take us through the financials. Michelle? Thank you, Eric, and hello everyone. I'm excited to share Zoom's Q3 FY2026 financial performance today. In Q3, total revenue grew 4.4% year- over- year to $1.23 billion, or 4.2% in constant currency. This result was $15 million above the high end of our guidance. Our enterprise revenue grew 6.1% year- over- year, representing 60% of our total revenue, up 1 point year- over- year. Our online business continues to show signs of stabilizing. In Q3, average monthly churn was 2.7%, in line with Q3 of last year and at an all-time low. In our enterprise business, we saw 9% year-over-year growth in the number of customers contributing more than $100,000 in trailing 12-month revenue. These customers make up 32% of our total revenue, up one point year over year. Our trailing 12-month net dollar expansion rate for enterprise customers in Q3 continues to hold steady at 98%. Pivoting to our growth internationally, our Americas revenue grew 5% year- over- year, EMEA grew 3%, and APAC grew 4%. Moving to our non-GAAP results, which excludes stock-based compensation expense and associated payroll taxes, acquisition-related expenses, net gains on strategic investments, net litigation settlements, and all associated tax effects. Non-GAAP gross margin in Q3 was 80%, up 117 basis points from Q3 of last year, primarily due to cost optimization efforts. We remain focused in the near term around balancing investments in AI with cost efficiencies. Non-GAAP income from operations grew 11% year- over- year to $507 million, exceeding the high end of our guidance by $37 million. Non-GAAP operating margin in Q3 was 41.2%, up 234 basis points from Q3 of last year. The operating margin improvement was driven by ongoing cost management and timing of spend. Non-GAAP diluted net income per share in Q3 increased to $1.52 on approximately 305 million non-GAAP diluted weighted average shares outstanding. This result was $0.08 above the high end of our guidance and $0.14 higher than Q3 of last year. The EPS growth reflects strong business performance, effective cost management, as well as anti-dilution driven by our buyback program and our disciplined stock compensation management. Turning to the balance sheet, deferred revenue at the end of Q3 grew 5% year- over- year to $1.44 billion, towards the high end of our previously provided range. In Q4, we expect deferred revenue to be up to 4-5% year- over- year. Looking at both our billed and unbilled contracts, our RPO increased 8% year- over- year to $4 billion. We expect to recognize 60% of the total RPO as revenue over the next 12 months, down one point year- over- year. Operating cash flow in Q3 grew 30% year- over- year to $629 million, representing an operating cash flow margin of 51.2%. Free cash flow margin in the quarter grew 34% year- over- year to $614 million, representing a free cash flow margin of 50%, up 11 points year- over- year. The year-over-year increase in free cash flow margins was driven by improvements in the collection process as well as stronger billings. We ended the quarter with $7.9 billion in cash, cash equivalents, and marketable securities excluding restricted cash. Under the pre-existing $2.7 billion share buyback plan, in Q3, we purchased 5.1 million shares for $414 million. As of the end of Q3, we repurchased 32.5 million shares for $2.4 billion. Turning to guidance, in Q4, we expect revenue to be in the range of $1.23 million-$1.235 billion. This represents approximately 4.1% year-over-year growth at the midpoint. We expect non-GAAP operating income to be in the range of $477 million-$482 million, representing an operating margin of 38.9% at the midpoint. Our outlook for non-GAAP earnings per share is $1.48-$1.49, based on approximately 305 million shares outstanding. For the full year of FY2026, we are excited to raise both our revenue and profitability guidance. We now expect revenue to be in the range of $4.852 million-$4.857 billion, which at the midpoint represents approximately 4.1% year-over-year growth. We now expect our non-GAAP operating income to be in the range of $1.955 million-$1.96 billion, representing an operating margin of 40.3% at the midpoint. In addition, our outlook for non-GAAP earnings per share in FY2026 is increasing to $5.95-$5.97, based on approximately 308 million shares outstanding. As a reminder, future share repurchases are not reflected in share count and EPS guidance. With the strong free cash flow results in Q3 and increased outlook for operating income in FY2026, we now expect free cash flow to be in the range of $1.86 billion-$1.88 billion for the full year, which at the midpoint represents approximately 3.4% year-over-year growth. As indicated in our press release today, we are also excited to announce our board has authorized an incremental $1 billion share repurchase. This reinforces our board and management team's confidence in Zoom as we continue to leverage our strong cash flow and balance sheet to drive shareholder returns. In closing, we've made progress improving top-line growth, we've sustained best-in-class profitability, and we've reduced dilution. We're executing on our three priorities with discipline and momentum and remain committed to building on this success to deliver lasting value for our shareholders. Thank you to our customers, investors, and of course, the entire Zoom team for your trust and support. With that, Megan, please queue up 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 one question. Our first question will come from Tyler Radke with Citi. All right. Hey, everyone. Thanks for taking the question. Really nice to see the stabilization and acceleration in the business, as well as the margin expansion. Just a multi-parter here on growth. If we look at Q4, the outlook looks very strong. How should we be thinking about that as a jumping-off point into next year? I ask because I know there were some price increases that you took on the online business this year. How do you think about pricing heading into next year? Big picture, you're kind of near that 5% growth mark. Certainly, it should be by Q4. What do you need? What are sort of the stepping stones to get back to a 10% growth over the long run? Thank you. Yeah, I can jump in and take that one. First of all, we're not sort of at our planning process to the stage of getting FY2027 guidance. We're going to go ahead and do that as per the normal kind of Zoom process in February. With that said, maybe to touch on a couple of your questions and with more specifics, any pricing kind of element we would always try and give real clarity to investors. If we choose to do that, you would also get that in the February time zone. Maybe let me just pause a little bit and share some thoughts about how we think about kind of long-term growth. First, with this latest forecast, enterprise will continue to be the predominant growth driver. With this latest round, you'll see that we do expect online to be a slight increase on the full year. Really, the elements that investors should have top of mind as they think about growth path for 2027 or even beyond that are the same elements that we've been talking about, first and foremost, stabilization, excuse me, churn, and then product diversification, moving up market. Really, those three priorities are going to be also the predominant drivers and focus of growth going forward. Thank you. Our next question is from Michael Funk with Bank of America. Yeah, great, great. Thank you for the question. Maybe a related question asked a slightly different way. Looking at the enterprise net dollar expansion you reported, still below 100%, clearly an opportunity to help drive top-line growth if that does improve. Several competitors, though, noted they're continuing to see post-COVID seat-based contraction. Can you peel apart the pressure on NDE, and if you're also seeing post-COVID seat-based contraction, and if you are, when you expect that to turn and maybe contribute to more positive top-line growth? Sure. First, thanks for the question. Look, we're pleased after six quarters to see the net dollar expansion stabilizing. We're not going to sort of guide to inflection, but certainly, inflection is the goal. What I would say in terms of how to think about it, maybe just a continued reminder for investors, that when we have products like Contact Center and Workvivo, that tend to bring in new customers to Zoom, those will obviously take a little while to play through the dynamic of the metric. Overall, in terms of your maybe more specific question about seat count, that's not something that we've seen be a huge element to our quarter. Certainly, always customers here and there will have seat pressures, but we've seen overall a very strong macro demand. Great. Thank you, Michelle. Thank you, Eric. Thank you. Our next question is from Rishi Jaluria with RBC Capital Markets. Rishi, are you there? Oh, there we go. My apologies on that. Thanks so much for taking my questions. Maybe just one simple one from me. Coming out of Zoomtopia, there was conversation around M&A, and I know you've done some too small tuck-ins right now. Is this just kind of how we should be thinking about M&A for you going forward in terms of it'll be more technological, a little tuck-in in nature, obviously accelerating your AI roadmap? Or is there a potential for maybe more transformational M&A? Thanks. Yeah, thanks, Rishi, for the question. Really, I would say our thoughts on M&A are very consistent to kind of what I've said previously, really no change, just to update investors. Let me go ahead and recap them just for everybody's knowledge. First of all, is that we're going to be very thoughtful and disciplined in both acquisitions and integrations. We're going to make sure that they're strategically aligned with synergies and obviously coming with sound financials. For Zoom, that typically will mean small to medium-sized investments. Think of the Bonsai and BrightHire M&A as small in nature, if helpful. We'll be in. Okay, helpful. Thank you so much. All the way up to medium. Okay. All right. Thank you. Our next question comes from Josh Baer with Morgan Stanley. Excellent. Thank you. Thank you very much for the question. Congrats on the beat and raise. I wanted to double-click on growth, enterprise growth from one more angle, just really double-clicking on Zoom Phone, ARR, which is growing mid-teens, customer experience, high double-digit growth, Workvivo, you have rapid growth there. Could you walk through each of those growth areas, just wondering how you think about the sustainability of those growth factors? Yeah, maybe I can take that one. Maybe I'll use the opportunity as well, Josh, just to call out to investors that we made a slight tweak to the three priorities that we've been highlighting to investors, really two themes of what we were trying to get across. One, AI in all of our priorities, and two, really just sharpening kind of the language with which we talked about our priorities. Let me introduce them or reintroduce them the same as what Eric talked about in his script and give an update to sort of get at your product-specific question. The first one is really about elevating workplace with AI. Broadly, what that means is AI over the entire meeting lifecycle. The things that I would think about in terms of growth and progress that we saw in Q3 there are continued progress against churn. It's the fifth consecutive quarter on enterprise for year-over-year declines on churn. You obviously heard the call-out in online for record low churns. Not just that. It's the Zoom Phone. Increasingly, how much AI comes up in our win rates, you see it in the 10 million seats in the mid-team growth. Second big priority for us is to drive new products with AI. I should mention on the previous one, also integral to that that sort of sets up the second one is getting that AI usage going. That's where we continue to see four times year-over-year now increase in our AI. When it comes to new products in AI, we have sort of the horizontal that builds off that AI usage. You see the big names in Salesforce and Oracle. Still early days, but pleased to see that in our second quarter and building off the names we shared last quarter. Certainly, then there's vertical, be it our ZRA product or our new BrightHire acquisition. Last, to kind of get at your Contact Center question or comment is really to scale AI-first customer experience, whether that's agent-assisted or virtual agent. Really, what you're seeing called out by Eric in his script is strong, high double-digit revenue growth, customer growth in the 60+%. Also, just in the nature of the deals, a strong AI preference, nine of the top 10 deals pulling AI and many pulling both virtual and our agent-assisted. A lot that we're excited about as we pivot to growth going forward to update on our product side. Great. Thank you. Yep. Next up, we'll hear from Ryan MacWilliams with Wells Fargo. Hey, guys. Good to see you again. Really cool to see the AI avatar in the prepared remarks. Maybe one day I'll be asking AI Michelle about growth next year. Just kidding. We'll send our bots, Ryan, to talk to one another. Yeah. AI Mac, I don't know if you can recreate the Philly accent, but just one for Eric, actually. Zoom has had really strong product velocity historically. As product development timelines shrink even further with agentic coding, do you think this offers Zoom the opportunity to build more product density into your existing products with new features or expand into new product categories? Ryan, this is a great question. I'm thinking in the AI era, I think every business is, right, and facing the similar challenge and also the great opportunities. The innovation speed is unprecedented. Look at the way the engineer writes the code. Look at the marketing service team, how they leverage AI to automate the process. We got to leverage AI to reinvent everything. The good news, I have an engineer background, right? I think I have to, and also I also determined to spend way more time than any time in my career to double down, triple down on the product side. I think there's a huge opportunity, meaning we have to change the company culture and make sure every engineer, right, the way they write the code is totally different. The way they troubleshoot, the test also is very different. We need to make sure every engineer, even if they write the tens of thousand lines of code before, they have to embrace AI now. Back to your question, I truly believe the innovation speed will be much faster to build new features and new services, right? I think that's an opportunity. We are in a much better position, right? I am figuring out a way to really spend more time on that. That's the reason why I can tell you I could not be more excited now. Finally, I think we are going back to the early days of Zoom, double down on the product, leverage AI, build innovative services. You are so right, so. Appreciate the comment. Thanks, Eric. Thank you. Our next question comes from Patrick Wahl Ravens with Citizens. Oh, great. Thank you. Let me add my congratulations. I love the accent that you picked, Eric. I do not know what it was, but it was fantastic. Can you go into some detail and help us understand exactly how the Salesforce win works? Eric, if you are sitting there with Benioff, how do you pitch it, right? Just give us some details on how it changes the experience for people at Salesforce. Yeah. Salesforce is a great company. Marc is a great friend, also with our investor, right? Pretty sure he's thinking about AI every day as well. Look at the Salesforce event, right? The Dreamforce is very successful, the Agentforce event, very successful, right? They have an Agentforce framework. They also have a customer and how to integrate our AI company, I mean, sorry, customer and AI company, right, to integrate with the Agentforce framework. Essentially, we drive the productivity, right? Because they have a generic framework with our customer and company together, for sure. That's a no-brainer, right, to integrate it together. Given our customer, why not, right, to enable this feature? That's how this conversation started. That's the reason why they decided to move forward with a customer and a company. More and more customers realize the potential of not only for Zoom AI company, but also the customer and the AI company. I think that's the reason why. Next month, we are going to announce our Zoom AI Companion 3.0 GA, right? A lot of opportunity ahead of us. Salesforce, again, just one example. All right. Thank you. Thank you. Yeah. I will invite you to test our AI Companion 3.0 next month whenever we reach GA. I am pretty excited. Our employees really like that too. Our next question comes from Alex Zukin with Wolfe Research. Hey, guys. Thanks for having me on. Eric, I'd love to test out that virtual avatar when it's ready for GA. Maybe just a quick one for you and a quick one for Michelle. For you, Eric, when you think about AI monetization that you're seeing in the business and in the quarter and in the coming quarters, maybe talk about that a little bit. Michelle, for deferred revenue was a little bit light of your high end of your guide this quarter, but it seems like it's actually a pretty strong guide for next quarter. Was there anything that shifted from one quarter to the next or pushed out or pulled in that maybe explains that? Yeah. Yeah, Alex, by the way, the virtual avatar feature already is there, right? This is the third time I'm using my AI avatar for our earning call, right? That frees up a lot of my time. I really love that. Back to your question to monetize the AI as Michelle mentioned, right? Look at the few priorities, right? Elevate the Zoom Workplace with AI and double down on the AI-centric product. You look at our horizontal collaboration suite in the AI company as Michelle mentioned, right? Look at the usage year over year, already four times more, right? Customer AI company, we can monetize and form a sales team. Also, we are going to have introduced the new SKU to monetize AI company as well online. That is on one hand. On the other hand, we also have vertical services like Zoom Contact Center, right, and Virtual Agent, right, Zoom AI Assistant, right? And also the Zoom Revenue Accelerator for each of those departmental applications, including the vertical market solutions like Zoom Workplace for educators, right, and clinicians, and also for the frontline workers. A lot of AI features already built in we can monetize. Not to mention Zoom AI Companion 3.0 will be ready next month. I think almost everywhere. We can leverage AI, improve productivity, improve the features. At the same time, we also can monetize as well. It's not a single thing, right? Or single product we want to monetize. It's almost everywhere across the entire product portfolio. Back to the BrightHire, the acquisition. The reason why we acquired that company also is leverage AI to improve the hiring as well. AI is a foundation for us. We can monetize. We can innovate, so. Yeah. If helpful, Alex, maybe just to tag on to Eric, and then I'll hit your deferred revenue question. We produced at Zoomtopia sort of a framework of AI monetization because it does kind of monetize indirectly and directly in different ways. Happy to share that with investors after. To Eric's point, as you go through that framework that we shared with investors, progress on every single trend in the third quarter. To your deferred revenue question, look, we ended upper end of the range, gave a very consistent guidance in Q4. Nothing really to call out. Results were sort of as expected on the deferred revenue. Thank you, Alex. Thanks, Alex. Our next question comes from Timothy Hiran with Oppenheimer. What other apps that are really important to kind of improve on your overall productivity strategy or software? Thank you. The first part of the question, I'm so sorry, cut out. Would you mind repeating that just so? Yeah, sure. Sorry, Michelle. An important part of the strategy, I think, is to integrate with other productivity software apps. Can you talk about some of the most critical ones and where you are in that process? Yeah. Eric, you want to take that? Sure. I think, first of all, we are way beyond video conferencing, right? We have so many other services we would like to integrate. At the same time, look at the ecosystem, right? We do integrate with Google ecosystem well and Microsoft ecosystem well as well. Plus ServiceNow, Salesforce, and Atlassian, all those popular productivity tools, right? We all work on the integration. Again, this is the open ecosystem. Also, we listen to our customer very carefully. Whenever they tell us, "Hey, they need more integration," we also work on that as well. Is AI making that easier or harder at this point? Easier and harder. Meaning the reason why easy, for sure, from an execution perspective, for sure easier. The harder part is because of AI, every customer, they want to tell us, "Hey, given the AI era, can you integrate more, right? Can you release it in a timely manner, right?" The requirement also is different, right? From that perspective, a little bit harder, but really boils down to execution. I have confidence our team can deliver. Thank you. Thank you. Our next question is from Seth Gilbert with UBS. Hey, thanks for the question. Free cash flow is a bit above what we in the street were modeling, and free cash flow margin hit 50%. I'm curious if you call out anything additional here. Were there any one-time benefits to free cash flow? Thank you. Yeah. Thanks. Thanks, Rick. Obviously, we're pleased with the Q3 results. As such, it made sense to update the full year guidance as well. I'm pleased with the overall progress, frankly, that we made since the beginning of the year kind of guidance. With that said, to your question specifically on the one-time, look, there are very durable results as part of that. You see that obviously in our core financials. The one thing that we did put into script that I would make sure I emphasize with investors is we made some changes as part of our collections process, really looking at that more end-to-end as a new CFO coming in. As a result, we were able to make real notable progress on DSO. Those are sustainable changes to our DSO, but obviously, you will not continue to see that marked progress as we go forward, meaning it will not continue to accelerate off that. You can kind of think about that as durable, but one-time a bit in nature. Yeah. Thank you. Yeah. Yes. Thanks. By the way, our CFO, Michelle, she did a great job, really drive her team, right? Dramatically improve our collection process. It It is very sustainable. We agree. Yeah. Thank you. Next, we'll hear from James Fish with Piper Sandler. Hey, guys. Thanks for the question. Maybe Eric, for you on BrightHire, is this the start of expanding into other mission-critical business workflows, or how should we think about I'm not asking about the M&A strategy, but more about that sort of broader platform expansion? Michelle, how should we think at this point about the duration of the overall install base? Thanks. This is a great question. My great friend, Jim Cramer, made a comment recently, right? He wishes Zoom would become more than just a Zoom, right? That is actually our strategy over the past few years. Double down on Zoom Phone, launch the Zoom Contact Center, leverage our technology, right, to focus on those business mission-critical use cases. We are already doing that over the past few years. BrightHire acquisition is just another way for us to double down on business mission-critical applications. We cannot build everything by ourselves, right? Why not? We do not have a greater remote hiring solution to target HR remote hiring use case, right? BrightHire fits very well to our strategy. You will see that more and more we are going to leverage AI because data AI and focus on those business mission-critical use cases way more than just video conferencing. This is all our strategy over the past few years. We are going to continue that strategy. Your comment is right, huh? Just so I get to your right question, your question on install base was in regards to BrightHire, or? No, it was a separate question around the duration that you're seeing because it seems as though you guys are doing pretty well on sort of cross-sell of existing products, and you're seeing that show up also on the long-term RPO, really driving some growth here on the overall RPO. Just trying to understand where the duration of the enterprise contracts has gone. Yeah. Look, I think, look, from any quarter- to- quarter, you're going to see fluctuations. We've had a very consistent RPO trend in the current. Very pleased with the current quarter RPO that went up, which really reflects a couple of large contact center and AI deals in particular. I would say it varies from quarter to quarter, but we're very pleased with the upsell progress that we have relative to our upsell base, as well as kind of what I was referencing earlier, which is bringing in new customers to the Zoom ecosystem. In particular, to the duration of deals, I would say sort of a stabilize. There's obviously AI and contact center that brings in sort of longer-term nature of contracts, but a relatively stable trend with it. All right. Our next question is from Mark Murphy with JP Morgan. Hey, this is Ardy Vuon from Mark Murphy. Thanks for taking my question and congrats on the strong quarter. We recently spoke with a Zoom partner who was very positive on Zoom's products, pricing, just overall value prop. They kind of called out particular momentum within the mid-market, legacy migrations, adoption of contact center AI products. From where you sit, are you seeing this relative strength in the mid-market segment as well? Thanks. Yeah. I would say to that end, I think we're seeing strong uptick of AI usage, as well as strong uptick of usage in our three-plus products. Certainly, this is, I would say, a sweet spot for Zoom from small business down to low-end enterprise and something that we're pleased with the results that we're seeing that I think you can see play out in many of our financial metrics. Yeah. By the way, to add on to what Michelle said, the reason why that mid-market of a sweet spot is, number one, those mid-market customers, they really embrace technology faster than any other segment, right? Two, mid-market customers truly care about employee experience, right? They really want to deploy the best solution with a much better total cost of ownership. That is the reason why that is our sweet spot. That is the reason why we are winning over there. Great. Thank you, Eric, Michelle. Thank you, Mark. Our next question is from Siti Panagrahi with Mizuho. Hi, thanks, guys. This is Chad Tevebaugh here for Citi. Just wondering if you could touch on sort of the broader demand environment. I know there were some moving pieces earlier in the year, sort of how that shaped out during the quarter and expectations for the rest of the year. Yeah. Look, I think in the quarter, we saw further improvement. I think you see it in metrics like our customers over $100,000 growing at 9%. That does not mean that we are not going to see some seat pressure like we talked about earlier. That is certainly our business model, and we will not be immune. We saw broad, consistent demand across both enterprise and online and full abatement, if that was your specific question, to what we referenced in our Q1 earnings. With respect to our forecast, it assumes similar conditions to what we saw in the third quarter. Maybe to end with sort of where Eric left us in the last question, at Zoom, what we're going to focus on is not any conditions from one day to the next, given we are in a dynamic environment, but on providing sustainable TCO and business value to our customers. Sort of in the line of, in uncertain conditions, you control what you can control. And to Eric's point earlier, we have a fantastic TCO story that we're leaning in on with our customers. Awesome. Thank you. Yeah. Next, we'll hear from Jackson Ader with KeyBanc. Great. Hey, guys. Good to see you. Thanks for taking our question. Michelle, on the, I'm going to call it the non-revenue top-line metrics, you've talked about billings, you've talked about RPO. I'm just curious, as you shift more of your business toward the enterprise, when should we expect those non-revenue metrics to start to outgrow maybe your overall revenue metrics on the top line? I mean, in terms of the non-revenue metrics, I would point to things like our AI usage. I would point to product momentum-type stats to which they already are outpacing our revenue growth. I do not know, Jackson, correct me if I am sort of missing your question, but I think those are the sorts of non-specific explicit revenue drivers that I look at, and I would say they are already outpacing. Got it. No, no, no. That's helpful. Yeah. Just curious about the dynamics there. Thanks, Michelle. Yeah. Just to quickly add, Jackson, you're right. And you're right, right? AI usage is really number one. The metrics we are looking at every day. At the same time, CSAT, that's another metric. Also look at that, right? The customers are pretty happy, not only for online customers, online bars, SMB, and all the way to enterprise customers. We also measure CSAT as well, so. Got it. Thanks, Eric. Thank you, Jackson. Appreciate it. See you guys. Our next question is from Peter Levine with Evercore. Great. Thank you for taking my question. Maybe just to follow up, I think, on Jim Fish's question. If you think about, Eric, you've mentioned a lot about employee experience on this call. I look at BrightHire. I mean, is this like the on-ramp into Zoom getting into the HR stack, if it's interviewing, onboarding, engagement? Just curious if you can maybe just talk about how you view, is this the on-ramp into HR? If you think about other segments that you can get into, can you maybe just help us understand where else Zoom can go with the platform expansion? Peter, this is a great question. You look at our core competency, look at our technology, right? In the collaboration and the productivity suite under the AI, this is our core technology. And how to apply those technologies, right, into the use case. That's kind of every quarter, every year we are looking into, right? That's the reason why a few years ago we introduced the contact center, essentially to target support, IT help desk, those kind of use cases department. We also have Zoom Revenue Accelerator, right, to target the sales department, right? We also have Zoom Webinars, Webinars Plus, also target the marketing department. You look at HR. HR is, I would say, is a huge use case. We are not going to focus on every use case at all, but we just focus on the remote hiring, right? Because we can leverage our technology. That's a very different use case, right? For those, each department, how to leverage our product, AI, and data, right, to improve the use case. That's our focus, including the vertical segment as well, like educators, clinicians as well. If you understand our strategy, expanding strategy, you look at which department, which vertical market might benefit from our technology, AI, and data. That's the kind of thing we are going to focus on. Remote hiring, BrightHire, for sure, fits very well to our strategy for expansion. Great. Thank you very much. Yeah. Thank you, Peter. Our next question is from Tom Blakey with Cantor Fitzgerald. Hey, Eric. I'm Michelle. Thank you for taking the questions. I have a couple of quick ones. Really just one for you, Eric, and a clarification for you, Michelle. Eric, you were key in leading the charge in terms of the higher pricing tiers in CX, and it's great to see the success you're having there. Another Zoom heritage is disrupting markets in terms of technology and pricing and products. You have some peers in CX talking about maybe possibly disrupting the CX market with regard to consumption-based pricing. I would love to hear your comments in terms of some forward-looking possible kind of statements there in terms of how Zoom could compete in a consumption-led CX market. Michelle, from a clarification perspective, I think you made some comment about online growth kind of upticking off of fiscal 3Q, maybe possibly in fiscal 4Q when there was a desell in enterprise. Could you just maybe clarify what we possibly could expect in terms of that mix would be helpful in fiscal 4Q? Thank you. Yeah, yeah. Tom, thank you for a good question. Just curious, your background is what's your background? A real one. I'm so jealous. It's so beautiful. That is as fake as it can be. Oh my God. I even did not know how technology works so well. I did not realize that's a real one. I'll figure it out. Anyway, back to your. That's true. Yeah. Thank you. Back to your question. You are so right, huh? Remember, I was Zoom Contact Center general manager for a while, right? Very excited about our contact center workforce management, quarterly management, right? Zoom's product over the past few years. Guess what? Because of AI, we have leveraged AI, introduced a new product, which is a virtual agent. It's a chat-based agent or the voice agent. I feel like that's becoming more and more important, right? Because we have both. We have the traditional contact center solution. We also have a virtual agent solution. In terms of consumption of the business model, I think it will fit very well to our virtual agent, right? Because customer deployed technology, right? How often do you use a virtual agent? How many times do you use a virtual agent, right? We got to do based on how happy a customer they are, right, for every call, right? If a virtual agent can truly help address the customer's issues, customers should pay for us. Otherwise, they should not because you fall back to the traditional agent solution, right? I think from that perspective, we're indeed thinking about the consumption-based model for the virtual agent or AI-based agent technology. Yeah, we are working on that. This is a great question, so. Thank you. Just to clarify, the virtual agent, while our agent-assisted product is a per-user model, our ZVA product that Eric is referencing is already a consumptive business model. Certainly, I think many in the industry talk about tying it more to outcome-based. We obviously are looking into that. I just want to make sure it was clear that we are already consumptive-based on our ZVA product. Two of my comments to clarify on the online was just with one more quarter clarity and the full-year guidance out there. Full-year guidance of 4.1% at the midpoint. All I was trying to do in my comments is say that we've used a consistent forecast methodology. Previously, to the investors, we've been saying sort of flattish online revenue. Obviously, with now most of the year playing out and the results realized in the online, we're just adjusting that to a tweak of slightly increasing. That's all. Super helpful. Thank you, Michelle. Thank you, Eric. Thank you, Tom. Our next question is from William Power with Baird. Great. Thanks for taking the question. Hey, Eric, maybe let's stick with your contact center GM hat for a moment. Can you maybe remind us and maybe update us where we are on contact center, go-to-market? Where are you in terms of the opportunity in terms of channel partner reach? I guess if you extend that, the opportunity outside the U.S., U.S. versus international, because I assume international is still on the earlier front. Yeah. William, by the way, I was the Contact Center GM. I'm not that anymore, luckily. If I do that, maybe focus on the Virtual Agent. Anyway, back to your question, I think look at the customers, right, suited to our platform last quarter. Many of them are switching from other cloud vendors to Zoom Contact Center, right? That's the reason why channel partners are becoming a most important go-to-market strategy for our Contact Center solution. We are doubling down not only for the U.S. market, but for international market as well. The Contact Center is very different buyers, and the channel has become increasingly important. We already invested there now and also are going to invest more, right? In terms of the Virtual Agent, not only do we leverage our sales team channel partners, we're also thinking about the product-led growth. Because guess what? Some developers, for let's say, take the SMB customers, they can leverage our API, deploy those virtual agent technology by themselves, right? That's why I think about how to monetize contact center to leverage our product-led growth to target developers as well. That's another area we are looking into as well. If helpful, maybe just to punctuate Eric's comments to your GTM question in particular, we look at top 10 deals in contact centers sort of reflective of the demand and the customer signal that we see. If helpful, nine out of 10 of our largest deals were channel-driven. It is a very important investment to us and one that we're very pleased with the results. Great. Thank you. Thank you. Next, we'll hear from Arjun Bhatia with William Blair. Thank you. This is Alinda on for Arjun. The question here on just what type of customers are adopting custom AI companions in particular, and what incremental value are they seeing from the custom AI companions versus customers using the free AI companions? I think for sure, we want to SMB, medium-sized, all the way to enterprise customers adopt customer AI Companion as quickly as possible. To start with, we focus on the relatively large enterprise customers for customer AI Companion. The reason why the demand, another reason is because look at our the value of a customer AI Companion. We can integrate with customer third-party applications. We can have a generic framework and for the data search as well. A lot of functionality and features are built for those a little bit complicated enterprise use cases, right? That is the reason why we start from there. For sure, we do have we want to introduce SKU or online bars as well to empower the small and medium-sized business as well, so. Thank you. Thank you. Our next question is from Catharine Trebnick with Rosenblatt Securities. Hey there. This is Andrew King on for Catharine Trebnick. Thanks for taking the question. Just since Nick Tibbs come in and started revamping your channel partners program, can you just give us any more color to how that channel partner platform is performing? Obviously, that nine out of 10 is a great metric to hear. Just any further color there. Also within that, you were one of the earliest to pivot to a partner-led professional services organization. Can you just give us a little bit of colors to how that may be helping you win certain deals? Yeah. Maybe I can lead out on that one. First, for a company that's going to focus on phone and customer experience, having a healthy, vibrant channel ecosystem is just par for the game. Meaning it's how customers often want to buy. They're certainly part of the deployment and services after. Zoom offers both a deep direct as well as a through channel. It is also to Eric's comments earlier. I think one of the questions earlier is integral to sort of our international expansion where Zoom has opportunity to go. In terms of how to think about success, I shared the earlier contact center, but also we're just very pleased with a lot of the forward-looking metrics that we see with our channel ecosystem. Pipe up 30%. The majority of contact center deals I talked about earlier are coming from partner, over 50% of our large phone deals coming from partner. The types of partners that are transacting with us is also growing. All in all, it's been a very big investment into my earlier comments, something that we're very pleased with the results. Great. Thank you. Our final question comes from Peter Weed with Bernstein. Hey, thank you very much. I guess the Peters on this call are of similar mind. I was really interested in BrightHire, and I appreciated your response around kind of the vertical-specific focus that you have, which makes a lot of sense, and I can understand why you're excited about that. How should we think about that opportunity? When you think of it relative to your existing customer base, how much of this is more of an upsell opportunity to them versus expanding the TAM to new customers? When you kind of think about the monetization, how does this add to your stack and really could expand the TAM or generate revenue upside for the business? Yeah, maybe I can take that one and give you sort of the finance version because Eric talked about BrightHire earlier. First of all, it starts a lot at those critical conversations. One thing Zoom is fantastic at is really just nailing those critical conversations with our customers. Look, there couldn't be a more critical conversation for our customers than who and how they hire. It also offers Zoom the ability, as AI monetization plays out across different markets, to have a very tangible scenario for customers where the value point is very clear and certainly represents one of those vertical AI monetization scenarios. It is a large and unpredicated market at roughly $3 billion, and certainly allows us to help them scale and also then gives us sort of an upsell piece beyond it. They're a category leader in sort of a large TAM that is growing. That is something we're very excited about. Thank you. All right. This concludes the Q&A portion of today's call. I'll turn it back over to Eric for closing remarks. Thank you. Thank you, Megan. Thank you for every investor, customer, and partner's greatest support and trust. We truly appreciate it. Thank you for every Zoom employee's hard work and dedication. Wishing you all have a wonderful holiday season. Thank you. Thanks, everyone. This concludes today's earnings call. Thank you all for attending and have a happy holiday season.