Zoom is gaining momentum in conversational AI, securing the “largest-ever” deal for its Virtual Agent solution.
The news comes as Zoom shared an update on its burgeoning customer experience portfolio.
Indeed, Zoom CX, which includes its Contact Center, Virtual Agent, and Workforce Engagement Management solutions, is now worth “triple-digit” millions in annual recurring revenue (ARR).
Moreover, the CX suite is experiencing “high double-digit” growth.
The Zoom Contact Center makes up a big part of that, with its customer base growing 65 percent year-over-year (YoY) in the first quarter of 2025.
That established base offers an opportunity for Zoom to expand its business, as these companies attach other products from the CX suite.
The Virtual Agent is an increasingly popular add-on, inspiring upsells and bigger deals.
Indeed, this was mentioned by Eric Yuan, CEO of Zoom, during the company’s latest earnings call. He said:
Look at the number of upsells of Zoom Virtual Agent, and it’s the largest quarter ever. We have lots of upsell opportunity… [and] it’s playing a big role to drive future growth.
Of course, it isn’t exactly rare to hear a vendor talking up one of its solutions.
However, Zoom differs from many competitors by walking the walk and deploying its own Virtual Agent.
Clear for all to see on the company’s website, the agent communicates in natural language, references its source content, and supports both rule-based and generative responses.
It can also hand off to a live agent when needed, providing a summary of the conversation to ensure a smooth transition.
According to Jodi Reuven, Senior Product Marketing Manager for the Zoom Contact Center, the agent has helped to deliver a “97 percent self-service resolution rate.”
Zoom Virtual Agent 2.0: Coming Soon?
Despite the record-breaking performance this quarter, Zoom is not resting on its laurels when it comes to its Virtual Agent.
Instead, the vendor sees it as an opportunity to double down on the solution.
During the Q&A section of the call, Yuan revealed plans to launch a new version of Zoom Virtual Agent by the end of the month.
While the CEO remained vague on what the revamped solution would look like, he confirmed that it would extend the solution to voice. He stated:
By the end of this month, we are going to launch our new version of Zoom virtual agent with a lot of new features, plus voice agents will be part of that.
This was first touted as part of a wider agentic AI release in March at Enterprise Connect, when Zoom stated it would release a qualified customer beta later this year.
Yet, Yuan also revealed that Zoom will pull new capabilities into the offering, like those already available within its AI Companion.
That signals that the Virtual Agent may include new agentic AI features.
As such, it may be able to reason and work with AI agents in other systems to automate more complex customer queries.
Key Q1 Figures
When it came to the actual figures, Zoom reported total revenue of $1.17BN for Q1 2025, marking a 2.9 percent YoY increase (3.4 percent in constant currency).
Its enterprise revenue rose by 5.9 percent to $704.7 million, counterbalancing the decline in its consumer business.
Average monthly churn dropped to 2.8 percent, marking the lowest first-quarter churn rate in Zoom’s history.
The number of customers generating over $100,000 in trailing 12-month revenue also increased by eight percent YoY.
