Executives bullish on enterprise solutions despite the company missing revenue estimates
Zoom Contact Center has achieved sales results executives had not expected “for another 18 to 24 months,” Kelly Steckelberg, Zoom’s CFO, said during the company’s latest earnings call.
The comments come as the company missed Q2 revenue estimates, after reporting an eight percent increase year on year in revenue.
A stronger U.S. dollar and low growth in non-enterprise customers were among the biggest factors contributing to the miss, said Steckelberg.
She said new enterprise customers are pushing Zoom’s revenues forward. Indeed, its enterprise business expanded 27 precent year on year and now makes up more than half of Zoom’s total revenue.
“The strategy for selling Zoom Phone, Rooms, Contact Center, etc., is to sell into our existing installed base. We continue to see some of our largest customers continue to expand,” the CFO said.
Eric Yuan, Zoom’s Founder and CEO, said that customers were attracted to Contact Center because of its seamless integration with Zoom Meetings and Zoom Phone.
He added that the vendor has displaced legacy contact center solutions, which he called “costly and complex”, with “flexible, innovative” solutions that are “lower cost, in many cases.”
Yuan highlighted that Zoom built its contact center solution following extensive customer feedback, with a strong focus on present-day customers’ requirements, unlike incumbent platforms which were built “many years ago.”
The in-built integration with products like Zoom Phone means that customers are more likely to stick to one vendor, like Zoom, instead of adopting different ones.
Yuan continued by echoing comments from NICE CEO Barak Eilam on customers’ growing preference for large tech vendors, stating:
I think ultimately, we have already won the customer’s trust. We listen to customer feedback very carefully. Whenever they have some new feature requests, we can innovate much faster. That’s the reason why I think customers are willing to try Zoom Contact Center and deploy Zoom Contact Center.