Zoom Communications reported solid Q3 FY2025 financial results with revenue increasing 3.6% year-over-year to $1.18 billion, driven by 5.8% growth in Enterprise revenue. Net income rose significantly to $207.1 million from $141.2 million in the same period last year. The company maintained a strong gross margin of 75.9% despite increased AI functionality investments.Management highlighted continued momentum in Enterprise customer expansion, with customers contributing over $100,000 in trailing 12-month revenue growing to 3,995, representing 30.8% of total revenue. The company's strategic focus on AI innovation was evident through increased R&D investments and the launch of enhanced AI Companion features. However, Enterprise net dollar expansion rate declined to 98% from 105% last year amid macro challenges.Looking ahead, Zoom remains focused on its AI-first strategy while maintaining profitability. The company expanded its stock repurchase program with an additional $1.2 billion authorization, reflecting confidence in its financial position. Free cash flow generation remained robust at $1.39 billion for the first nine months of FY2025, providing flexibility for continued investments in growth initiatives.

Zoom Communications reported solid Q3 FY2025 financial results with revenue increasing 3.6% year-over-year to $1.18 billion, driven by 5.8% growth in Enterprise revenue. Net income rose significantly to $207.1 million from $141.2 million in the same period last year. The company maintained a strong gross margin of 75.9% despite increased AI functionality investments.Management highlighted continued momentum in Enterprise customer expansion, with customers contributing over $100,000 in trailing 12-month revenue growing to 3,995, representing 30.8% of total revenue. The company's strategic focus on AI innovation was evident through increased R&D investments and the launch of enhanced AI Companion features. However, Enterprise net dollar expansion rate declined to 98% from 105% last year amid macro challenges.Looking ahead, Zoom remains focused on its AI-first strategy while maintaining profitability. The company expanded its stock repurchase program with an additional $1.2 billion authorization, reflecting confidence in its financial position. Free cash flow generation remained robust at $1.39 billion for the first nine months of FY2025, providing flexibility for continued investments in growth initiatives.