Zoom rebrands, showcases contact center growth in Q3
CALIFORNIA, UNITED STATES — Video conferencing platform Zoom has officially rebranded from Zoom Video Communications Inc. to Zoom Communications, signaling a strategic pivot beyond its origins in video conferencing.
The name change, announced alongside its third-quarter earnings report, reflects the company’s growing emphasis on broader communication solutions, including voice-over-IP, productivity tools, and its rapidly expanding contact center business.
Zoom drops ‘Video’ to reflect broader vision
The decision to remove “Video” from its legal name underscores Zoom’s evolution into a multi-faceted communications platform.
CEO Eric Yuan explained that the rebranding aligns with the company’s strategy to diversify its offerings and better serve enterprise customers.
“At Zoomtopia, we announced major milestones such as AI Companion 2.0 and paid add-ons for AI Companion and industry-specific AI customization, further cementing our vision to deliver a differentiated AI-first work platform that empowers customers to achieve more than ever,” Yuan stated during the earnings call.
Contact center business drives growth
One of the quarter’s standout achievements was Zoom’s rapid growth of its contact center division. The business saw an 82% increase in customers year over year and now serves over 1,250 clients.
The platform, which automates customer interactions, secured a record-breaking 20,000-seat deal in the EMEA (Europe, Middle East, and Africa) region. Yuan highlighted this success as evidence of Zoom’s ability to scale with global enterprises.
Q3 financials show modest revenue growth
For the quarter ending October 31, 2024, Zoom reported $1.18 billion in revenue, up 3.6% year-over-year. Enterprise revenue grew by 5.8%, while online revenue remained flat.
Despite these gains, Zoom shares fell over 4% following the earnings announcement, reflecting investor concerns about slowing overall growth.
AI-powered features and competitive pricing
Zoom continues to invest heavily in artificial intelligence to enhance its platform. At its annual Zoomtopia event, the company introduced AI Companion 2.0 and industry-specific AI customization tools.
Unlike competitors, which charge $30 per user monthly for AI features, Zoom has opted for a more accessible pricing model. Yuan emphasized that these innovations aim to boost productivity without passing significant costs onto customers.
Workvivo sees strong enterprise adoption
Workvivo, Zoom’s employee communications platform acquired in 2023, also showed strong momentum this quarter. The product recorded a 72% increase in new customers year-over-year and secured its largest deal yet with a Fortune 10 company. This growth highlights Workvivo’s appeal as part of Zoom’s integrated workplace solutions.
With its rebranding and focus on high-growth areas like contact centers and employee communications tools, Zoom is positioning itself as a leader in enterprise communication solutions while diversifying beyond video conferencing alone.
