Zoom Video Communications Inc (NASDAQ:ZM) Q3 2020 Earnings Conference Call - Final Transcript

Dec 05, 2019 • 05:30 pm ET

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Zoom Video Communications Inc (NASDAQ:ZM) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Executive
Eric S. Yuan

telephone and video conferencing services in order to better connect its workforce of more than 30,000 employees.

NAB is Australia's largest business bank and one of our largest financial service customers in the region. Since selecting Zoom in 2018 to help seamlessly connect its workforce across any device and internationally, they have continued to grow and adopt Zoom services throughout their business.

In Q3, the bank selected Zoom to support the telephone systems for a new Sydney-based major office building development. Zoom Phone was selected to support a unified communications approach, as the bank adopts a wireless working environment, as well as delivering projected cost savings and enhanced features and functionality. They will begin rolling out Zoom Softphones to over 6,500 users next year, focusing on tenants of the new building, as well as continuing to expand their Zoom Rooms footprint.

We're excited to continue delivering improved experiences for the bank through a full end-to-end communications platform, which helps better connect their workforce. Thank you National Australia Bank.

Now, let me discuss a couple of business highlights from Q3. First, analyst firm Gartner named Zoom a leader for the fourth consecutive time in their Magic Quadrant for Meeting Solutions. We are grateful that Gartner has recognized Zoom for our completeness of vision and our ability to execute once again. And second, we held our premier customer event, Zoomtopia, my favorite event of the year. It is only our third Zoomtopia and we had record registrations of 2,600, up over 80% from last year.

During the event, customers like AB-InBev, Autodesk, Electronic Arts, Uber and Walmart shared their stories. Many of these customers spoke to how frictionless Zoom experiences are driving productivity and delivering happiness with internal and external stakeholders. It's truly amazing and humbling to hear from so many happy customers from around the world.

Also, at Zoomtopia, we were proud to announce expansions to our platform, including our new Zoom Rooms Appliance Program, expanded Zoom Phone service and capabilities, and the growth of our App Marketplace. Our customers tell us that Zoom just works, and with these new innovations, we empower teams to do even more with video communications.

In closing, I'd like to thank the over 2,400 Zoom employees for their hard work and focus on our customers. Their commitment to customer happiness and execution at scale will enable us to finish the year strong and position us for future growth.

With that, let me turn things over to Kelly.

Executive
Kelly Steckelberg

Thank you, Eric, and welcome to everyone joining us. Let me start by first reviewing the financial results for Q3 and then I will discuss our outlook for Q4 and the full fiscal year.

Overall, we delivered another amazing quarter and demand for Zoom's unified communication platform remained strong across our major geographies and offerings. Total revenue grew 85% year-over-year in the third quarter to $167 million. This top line result exceeded the high-end of our guidance range.

Key drivers of our revenue performance included both our acquisition