A：The enterprise business experienced a 7% year-over-year revenue growth and represents 60% of total revenue. It also showed a 9% year-over-year increase in the number of customers contributing more than $100,000 in trailing 12 months' revenue, which contributes 32% to the company's total revenue. Additionally, the trailing 12 months net dollar expansion rate for enterprise customers remained steady at 98%.

A：Non GAAP gross margin in Q2 was 79.8%, up 128 basis points from the prior year, attributed to cost optimization efforts. The company continues to target a long-term goal of 80% non GAAP gross margins and in the near term aims to balance investments in AI with cost efficiency. Non GAAP income from operations grew 10.5% year over year, achieving $503 million, exceeding high-end guidance by over $38 million with a non GAAP operating margin of 41.3%.

A：Non GAAP diluted net income per share in Q2 was $1.53 on approximately 308 million non GAAP diluted weighted average shares outstanding, which was 16 cents above the high end of guidance and 14 cents higher than Q2 of the prior fiscal year. The EPS growth reflects strong business performance, effective cost management, and reduced dilution from the company's buyback program and stock compensation management.

A：Deferred revenue at the end of the period grew 5% year over year to $1.48 billion, and the RPO increased over 5% year over year to approximately $4 billion. The company expects to recognize just under 61% of the total RPO as revenue over the next 12 months, slightly up from 60% in the prior quarter.

A：Operating cash flow in Q2 grew 15% year over year to $516 million, with an operating cash flow margin of 42.4%. Free cash flow grew 39% year over year to $508 million, representing a free cash flow margin of 41.7%, up 10 points year over year. The ending cash balance was approximately $7.8 billion.

A：For Q3, the company expects revenue to be in the range of $1.21 to $1.215 billion (indicating approximately 3% year-over-year growth at the midpoint), non GAAP operating income in the range of $465 to $470 million (38.6% operating margin at the midpoint), and non GAAP earnings per share of $1.42 to $1.44 based on approximately 307 million shares outstanding. For the full year of FY 26, the revenue outlook is in the range of $4.825 to $4.835 billion (3.5% year-over-year growth at the midpoint), non GAAP operating income in the range of $1.905 to $1.915 billion (39.5% operating margin at the midpoint), and non GAAP earnings per share ranging from $5.81 to $5.84 based on approximately 308 million shares outstanding. The company also expects full-year free cash flow to be in the range of $1.74 to $1.78 billion.

A：Customers are realizing the value of AI in their operations and are adopting AI companions to enhance their capabilities. Some customers have customized AI solutions tailored to their specific needs, indicating that AI can be utilized for more than just summarization, such as connecting with their data, content, and response forces.

A：The company continues to guide towards the flat online number for the full year and reiterates the previous guidance range of 10 to 15 million for the incremental revenue growth. The revenue growth outlook for the second half of the year remains consistent with the guidance provided earlier.

A：Partnerships, especially with Meta, have been instrumental in the growth of the 'work' product, as customers transition smoothly to the PLA work platform. This has led to an increase in usage and more opportunities for employee engagement. The company is focusing on deploying the work view platform to medium-sized customers, which is seen as a new growth opportunity. These factors are contributing positively to the overall growth trajectory.

A：The custom AI companion add-on is still in its early phase, having been launched a few months prior to the conversation. Although more insights will be shared at the user conference Zootopia next month, the impact of the new add-on on the company's financials in the back half of the year is anticipated to be more pronounced towards the end of fiscal 2027, as it is a new offering.

A：Customers are looking at leveraging AI to help them more by connecting with different data sources they have, such as various applications, knowledge bases, and data indexing tools like Amazon Q or Green. They are seeking flexible, customized templates for meeting summaries and feedback to further improve their AI capabilities.

A：The company is seeing notable progress from AI in the contact center business, with broad growth and AI being an elite SKU contributing to this growth. While the full impact of recent innovations will be reflected in the next financial year due to the law of large numbers and product build-out, the company is pleased with the customer examples shared and the pipeline development.

A：The Zoom Virtual Agent 2.0, recently announced, benefits from AI innovations in its architecture. This AI infrastructure is not only helping the contact center business but is also empowering other services within the company, facilitating further monetization and contributing to the company's growth.

A：The company is tracking the usage of AI and its impact on ARR by considering the depth of usage, such as moving more into the productivity lifecycle and utilizing features like the side panel and tasks. They look at the AI health broadly, including the pace of innovation, recognition, and most importantly, the monetization. They measure the contribution to future growth in terms of funnel size and uplift in ARR.

A：AI adoption is significantly changing the competitive landscape by accelerating growth and altering the timeline for monetization. As AI becomes more prevalent, the competitive advantage shifts, impacting the timing of when the company can expect to bend the growth curve and the competitive environment. The adoption of AI is making the company more competitive and is expected to influence pricing strategies and the monetization timeline.

A：The company plans to use AI to improve and differentiate its products by building everything from the dollar up, which allows for rapid innovation and integration of AI capabilities. This approach is expected to enhance the company's products, making them more competitive and aiding in winning more deals.

A：Leading indicators for deal cycle elongation that may be impacting the company's metrics could include factors not explicitly named in the transcript, possibly including challenges in closing deals, changes in customer buying patterns, or disruptions in the macroeconomic environment.

A：Currently, Zoom is experiencing strong demand and a dynamic microeconomic environment. They've observed a partial abatement of scrutiny in certain geographies and continued strong SMB demand. This is reflected in revenue results and consistently decreasing churn rates across the online and enterprise segments.

A：Zoom's RPO growth of 5% is strong, and despite a very high comparable figure from the previous period, the current RPO bookings are the highest in many years. The comparable figures suggest that the growth is flat but indicate robust underlying performance.

A：Zoom's success in winning contact center deals over other cloud providers is attributed to customer dissatisfaction with existing providers, issues such as quality, outages, and a lack of innovation. Additionally, Zoom's AI capabilities, cleaner tech stack, and ease of implementation are key selling points, as evidenced by awards won and customer trust.

A：Zoom plans to leverage its vast amounts of unstructured data by continuously enhancing its AI capabilities and integrating more seamlessly with the core platform to provide a better customer experience. An example of this includes streamlining meeting scheduling processes. Zoom also emphasizes the importance of innovation speed and a focus on product and customer experience to stay competitive and relevant as AI usage among its customer base grows.

A：The new capabilities being introduced by Zoom focus on a smooth conversational interface and the use of AI to automate workflows, making it easier for users to leverage company systems to write and automate tasks.

A：AI is an area of active investment for the company, with a focus on offsetting AI costs with other efficiencies within the business. The company is committed to this approach as a reflection of the reality that their customers are experiencing.

A：The momentum in CCAAS is expected to continue with sequential growth, driven by a focus on up-market progress and addressing customer challenges such as growing labor costs and poor customer experience. This is anticipated to lead to continued strong double-digit growth in CCA and phone.

A：The AI First Auto dialer features the ability to automatically call and leave prerecorded messages without requiring a live agent. This proactive outreach feature has been well-received by customers. The feedback has been positive, leading to quick delivery of innovations.

A：The company addresses foreign exchange impacts by offsetting AI costs with other efficiencies, and specifically mentions that in Q2, the EMEA results were primarily impacted by foreign exchange.

A：The main driver for the company's revenue and cost growth in the second half of the fiscal year is the enterprise segment. The company plans to capture online price increases, maintain online flat pricing, and focus on various broad enterprise initiatives.