Zoom Video Communications Inc (NASDAQ:ZM) Q2 2020 Earnings Conference Call Transcript

Sep 05, 2019 • 05:30 pm ET

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Zoom Video Communications Inc (NASDAQ:ZM) Q2 2020 Earnings Conference Call Transcript

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Presentation
Operator
Tom McCallum

Hello, everyone, and welcome to Zoom's Earnings Webinar for the Second Quarter of Fiscal 2020. Joining me today will be Zoom's Founder and CEO, Eric Yuan and Zoom's CFO, Kelly Steckelberg. Our earnings press release was issued today after the market closed and may be downloaded from the Investor Relations page on the zoom.com website. 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.

During this call, we will make forward-looking statements about our future financial performance and other future events or trends, including guidance. 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 and which we discussed in detail in our filings with the SEC, including today's earnings press release and our latest 10-Q. Zoom assumes no obligation to update any forward-looking statement that we may make on today's call.

And with that, let me turn the discussion over to Eric.

Executive
Eric S. Yuan

Thank you, Tom. Hey, thank you all and welcome to everyone joining us on today's Zoom webinar. I am very pleased to report that we had a remarkable second quarter and continued to deliver a unique combination of high growth with increased profitability and free cash flow. As Kelly will discuss in a moment, the first half momentum in our business has enabled us to meaningfully raise our revenue and profitability outlook for the rest of the year.

Our strong second quarter results are evidence that organizations are turning to Zoom as a strategic technology partner to help them improve their communication and collaboration. While we continue to attract the customers of all sizes and across several industry segments, let's discuss one of our largest wins of the quarter. I am proud to welcome HSBC to the Zoom family. HSBC is one of the largest financial services organizations in the world with over 3,900 offices in 67 countries. HSBC will standardize on Zoom platform by deploying to 290,000 hosts and to 5,500 conference rooms. HSBC will consolidate onto Zoom's video-first unified communication platform for both internal and external meetings. By standardizing on Zoom, HSBC will consolidate costs and create an enhanced, frictionless experience for end users.

This enterprise-wide deployment represents one of the largest customer commitments to Zoom in our history and reflects our growing momentum with global customers. HSBC, I love you knowing my wife switches to [Phonetic] HSBC credit cards.

Now, let me discuss two more business highlights from Q2. First, we announced a new partnership with Verizon Business Group to offer Zoom to its global customers. Zoom's platform is available as a cloud service enabling Verizon's Business customers to enjoy reliable and innovative video communications. This agreement with Verizon is a great example of our strategy to partner with top