ZM | Market Cap: $26.9B (07/13/26)
Industry:
Software

DESCRIPTION

Zoom makes cloud-based communication and collaboration software. Its flagship product, Zoom Meetings, enables video conferencing from any device, and Zoom has expanded this into a broader unified communications suite — Zoom Workplace — that includes Zoom Phone (a cloud-based phone system replacing traditional on-premise hardware), Team Chat, Docs, and Whiteboard. Zoom sells to customers ranging from individual freelancers to large enterprises. Small customers self-serve online, while larger enterprise customers are served by a direct sales force and a growing network of channel partners and resellers. Zoom's product spreads virally, as meeting attendees become potential customers. Zoom generates revenue through per-user, per-month subscriptions, recognized ratably over the contract term. The core growth drivers are seat expansion, product upsell, and multi-product "land and expand" deals — customers often start with Meetings and later add Phone, Contact Center, and AI products. Zoom Phone has surpassed 10M paid seats and is growing in the mid-teens, displacing Cisco and RingCentral. Zoom Contact Center, launched about three years ago, is growing ARR in the high double-digits, competing with Five9, Genesys, and NICE. Zoom's AI assistant, AI Companion, is included at no added charge in paid plans and is monetized at the premium end through Custom AI Companion, a paid add-on connecting AI to enterprise data. Zoom also sells Workvivo, an employee experience platform. Zoom's business generates roughly 80% non-GAAP gross margins and approximately 40% non-GAAP operating margins.

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