Zoom Contact Center Licenses Triple as Its CCaaS Business Surges

CEO and new GM of Contact Center Eric Yuan credits Zoom’s partner base, deal expansions, and new pricing model for the spike

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Zoom Contact Center Licenses Triple as Its CCaaS Business Surges
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Published: February 27, 2024

Charlie Mitchell

Zoom experienced a CCaaS boom last quarter, with contact center licenses growing by 300 percent.

Sharing the news during an earnings call, Kelly Steckelberg, CFO at Zoom, said:

In Q4, we saw traction in our emerging products, including a nearly 3x increase in Zoom Contact Center licenses as we not only added a significant number of new customers but also expanded average deal size.

Zoom gave several examples of those deal expansions, including large enterprises such as Broadcom, a global infrastructure tech leader, and the Community Financial Credit Union, a full-service financial cooperative.

Alongside CCaaS, the former also lifted the Zoom Virtual Agent while the financial institution has embraced Zoom’s single enterprise communications platform concept.

Eric Yuan, Founder and CEO of Zoom, credited such expansions into CCaaS with the success of Zoom Phone – which has over seven million users.

“We’re training all those Zoom Phone specialists to also become Zoom Contact Center specialists, furthering our internal net sales capacity,” he said.

Yet, the CEO also attributed the surge in CCaaS deals to Zoom’s channel partners and new contact center pricing structure.

Speaking to the latter, Yuan stated:

[Customers] have confidence in our three tiers of pricing. We might introduce more in the future… But again, we look at everything from the customer’s perspective. With demand coming from every segment, from SMB customers to lots of enterprise customers… it’s very healthy.

Despite a post-pandemic decline in its consumer business, that healthy growth is helping to ensure revenues continue to rise at Zoom.

Indeed, the video conferencing pioneer recorded total revenues of $1.146BN last quarter, representing three percent growth YoY, with enterprise revenues up nine percent.

CEO Yuan Becomes GM of Contact Center

Thrilled by Zoom’s CCaaS success, Yuan aims to grab the bull by its horns. That reflects in a change to his job title, as shared during the earnings call. There, the CEO said:

Recently, I got a new job here at Zoom. I became the Contact Center General Manager of the Product Management Team of Engineers. [Now], the go-to-marketing team, sales marketing… they all report to me directly.

“A huge opportunity is ahead of us,” he continued. “The customer feedback is very, very positive, and we’re doing extremely well every quarter. In Q4, the number is amazing.”

Yuan then suggested Zoom is beginning to win more contact center business in “head-to-head competition” with legacy incumbents.

Finally, he concluded: “We are going to be doubling down, tripling down on our Contact Center offering because that’s a modern solution, AI-empowered, video-first… we’ve built a full suite.”

Meanwhile, alongside the core CCaaS offering, Zoom has conversational AI, workforce engagement management (WEM), conversational intelligence, learning management, and further complementary solutions.

Yet, there is still lots of room for innovation, and Steckelberg promised much more is to come.

Indeed, over the coming quarters, she suggests new compliance, WEM, and digital channel innovations will bubble to the surface.

These will follow Zoom’s January release, where the tech giant made moves to improve contact center data privacy, outbound dialing, and more.

 

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