Zoom Communications, Inc. (ZM) Earnings Call Transcript & Summary

Okay. Good afternoon, everyone. Hello again. I'm Tyler Radke, co-head the software sector here at Citi. And I think this is the fourth presentation of afternoon, third or fourth, but welcome to day 1 of the conference. And I feel we're especially privileged to have Kelly making the stop here at the Citi Conference on her way out of Zoom, but I'm sure we'll be seeing you pop up some more exciting next. So Kelly, I really appreciate you being here. I know you've come to our conference a number of years in the past.

Maybe we could just start off on the big news. And you announced you're going to be stepping down I think the end of the year. Just give us sort of your thought process and how investors should sort of frame the news in the context of everything going on.

Yes. So first of all, I've had an amazing experience at Zoom. I've been at the company almost 7 years. So to give you a perspective. When I started there were about 600 employees and $150 million of revenue. Today, we're sitting at about 8,000 employees and $4.5 billion of revenue. So it has been an amazing experience. Very, very difficult decision to leave. I hope you all feel confident that based on our Q2 results, it has nothing to do with the state of the business. In fact, like talk about joking somebody earlier, like I stayed through some of the really, really hard parts. And now I feel like there's a lot of momentum, but it's really more about I want to have one more big adventure. And in my career journey, I probably have time for one more and felt like now was the time. But if I was going to do it again, I was only going to do it at a company that I thought could even come anywhere near close to the experience I've had at Zoom. And hopefully, I found that. So we'll see. I am committed to staying through the Q3 earnings call though to ensure that we have a smooth of a transition as possible. The company has hired I think the best CFO recruiter out there to look for a successor. So that's well underway. And yes, I'm sure by making it public, this is an amazing job. I said once you make it public, you're going to have people come out of the woodwork and people coming to me like saying, who's recruiting for your successor. So there's lots of great people out there, they would love to have this job.

Yes. I can imagine. Well, we'll definitely miss you, but I think we're very excited to see where you land. So just coming back to the business, and I think everyone here is a user or a customer of Zoom. I know we certainly are at Citi. Can you just remind investors, though, how to think about the growth profile today from Zoom? And what are the key products that are driving growth? How should we just sort of think about the underlying growth opportunity?

Yes, so as a reminder, today, we have 2 segments of our business. We have online, and we have direct, and the direct segment of our business today is approximately 60% and online is about 40%. Online was a tremendous growth driver during the pandemic and has come down since then. And in fact, this year, we're pleased that online is going to be about [ 40-ish ]. So the goal is, of course, to get that segment returning to growth. But we spent a lot of time over the last couple of years focusing on stabilizing the business, improving the retention rates, which we announced in Q2 were the lowest point ever of 2.9%. So very happy about that. That means the growth is being driven by our Enterprise segment, which that segment is, that means a sales rep or a channel partner has touched that customer. And that growth is primarily being driven by the emergence of some of our newer products, including Phone, Contact Center and Workvivo. Workvivo had a very strong Q2. Part of that was driven by the partnership announcement with Meta that they were end-of-lifing their Workplace product, but that gave us an opportunity to go win those customers, which they've done very effectively, which has been great to see. And that's what I -- the momentum from Enterprise is going to continue to be driven by the core of the new products.

Got it. And I think this quarter kind of marked the first true kind of reacceleration in growth that you've seen obviously a way off from the hyper growth you had years ago. How should we sort of think about normalized growth at Zoom? I mean where do you sort of aspire to get back to? And if you want to make some agnostication on how fast this business will go under your successor, feel free, but...

I commit somebody in the future. But yes, as, for those of you as a reminder, we did indicate and we're able to execute to the fact that Q2 would be the low point from a year-over-year growth perspective and the guidance implies reacceleration from Q3 onwards. And we're not giving FY '26 guidance or even beyond that. But certainly, everyone on the company aspires to get us back to double-digit growth, like that's -- we would all love for that to be the case. That will take some time given where we are, for sure, but that would be everyone's desire. I mean the #1 priority at Zoom is to reaccelerate top line growth.

Yes. And as you think about the levers to do so, we talked a little bit about Phone and Workvivo, Contact Center. What do you think kind of the biggest drivers of that delta from where we are, call it, low to mid-single digits to that double-digit top line? Is it just how core meetings growth has to be better? Or is it contact center really takes off? Give us one of the biggest drivers of that.

Yes. So I think there's a -- the products are in different stages of maturity, right, which is also something to consider. So Phone has been in our portfolio the longest. We've disclosed in the past, it's greater than 11% of revenue. So it has a lot of the momentum already going there. What's great about Phone is it is actually kind of a gateway into Contact Center as well. And the reason that we even created a Contact Center product was because, especially our Phone customers were asking for it. Contact Center is a much newer product, but we've seen a lot of positive growth in terms of features and functionality. So if we talk about Q2 -- for example, in Q2, our top 10 deals were all external-facing contact centers. When we first launched the product a couple of years ago, it was mostly internal like IT help desk or HR teams because we didn't have all the features and functionality that were needed. But now we have native integration, obviously, with voice, with video, with chat. We also integrate socials. We have e-mails. We are PCI compliant, which is the ability to take a credit card safely, which is really key, of course, if you're using your contact center for any kind of sales. And of those top 10 deals in Q2, 6 of them were legacy on-prem takeaways, 4 of them were takeaways from what you would think of as the more modern cloud player. So I think that shows you that Contact Center is now really coming into its own in terms of being recognized. I mean it is the most modern contact center solution out there. It's the only one that exists today that was really built with AI at its core from the beginning. That's also reflected in the fact that we now have 3 pricing tiers. When we launched Contact Center, we had 1 pricing tier, $69 per seat per month, which is highly disruptive. Now we have $69.99 and $149. And $149 includes Zoom AI Agent Assist, which has AI capabilities built into it. One of them including the ability for a rep to summarize a call very quickly afterwards rather than having to type of all its notes. But I think what that reflects is this product now is ready to really compete against the legacy on-prem and the cloud providers and not only compete but win. And so that, I think, will start to drive a lot more momentum there. Workvivo is very similar. The Meta partnership has really provided a lot of momentum. And that pipeline that's being driven just from that source will last for a couple more quarters. So that momentum should continue. And what I think is really exciting about that is the majority of the customers that were onto that partnership in Q2 were new to Zoom. So these are customers that are using a different platform, a collaboration platform other than Zoom. But now we have the opportunity -- as a reminder, Workvivo is a very different persona typical user. It is really meant and designed for frontline workers. It's like a digital heartbeat of company. It's a communication platform. It's similar to like which you would expect to see like a social feed. But it's not necessarily -- I mean, it works for knowledge workers that are sitting in front of their PC all day, but it was really initially designed to reach those workers that are not in front of the computer that they're on their mobile device. So this is how they're getting news, they're getting shout-outs. For example, one of the largest customers is an international airline. So if you think about like ramp workers, right, they're not sitting in front of their computer, but they're on their phone, and that's how they're getting news about the company. And that is great for Zoom because it's our ability to reach a whole different persona than we do with our typical collaboration platform.

Got you. Yes, that's interesting. I know Workvivo was a big highlight this past quarter. Maybe just frame on the Meta and the Life partnership. Like, what is the total number of customers up for grabs? And I guess, are you competing with other companies for those? Just give us a sense -- sounds like a couple of quarters of opportunity.

It's definitely a couple of quarters of opportunity. I don't think that the total opportunity has been disclosed, but we are competing, but I would say we are the leading competitor in that space. And the fact that Meta is referring them to us. Of course, they're not giving them to us. We have to earn them, but is really helping being the preferred partner transition.

Got you. And a lot of those are net new logo...

Net new logo to Zoom, which is great.

Got you. Okay. That's interesting. And as you think about the Contact Center market, kind of hearing the success that you're having with the modern cloud contact center sort of displacement is encouraging. I guess we've heard from some other contact center vendors about AI, and there's obviously a lot of risk -- perceived risk around agent counts going down over time. How do you -- sort of the newcomer to the space, right, you kind of have a fresh look of it. How do you sort of shake out in terms of that ExQ debate? Are you seeing any signs of contact agent seats going down and customers you're working with?

So I guess a couple of things. First of all, we are in the fortunate situation that we are the new comers. As you said, and we're not sitting here trying to defend a large existing installed base. And so when prospects come to us or customers come to us, we want to understand what are their objectives and how can we support them in that. And we have not only our Zoom Contact Center, which is priced on a per seat basis, but we have Zoom Virtual agent, which sits alongside of it. It can be sold either together or on its own, and it is priced on a per capacity basis. So it's based on the amount of queries that come to it. And I really believe that AI in general is just going to continue to augment and improve the efficiency of most humans and not going to replace it. However, we've seen Zoom Virtual Agent be very, very effective when we have deployed it. We deployed it at Zoom and for our online. So these are our smaller customers, but it was able to handle 90% of that call volume. So it was very, very effective. We are also using it -- like my team is using it for customers that have queries around their resale certificates, for example, and it handles like 70% of that call length. So it can be very effective in certain situations And that's why I think understanding what the customers' objectives are and then finding the right tool to meet that capability is what we're trying to do. Today, Zoom Virtual Agent compared to Contact Center is a much lower percentage of our sales. It just is, but it is an opportunity, I think, for the future.

Okay. Got it. And just zooming out a little bit, as you look at the competitive landscape, there's obviously been some announcements from Microsoft entering the CCaaS market. How do you sort of feel that just the overall competitive landscape looks? Are you seeing any change in win rates or anything?

Yes. We compete very well. We talked about legacy. I think it's very difficult for those legacy on-prem vendors to do much innovation at all right now, especially around AI. So I think that Zoom has a very clear competitive advantage. And then when you look at us compared to the other cloud providers, the things that we hear back from our customers is they love its simplicity, its ease of use. We've won against others in the cloud space because our ease of implementation rather than having to spend hundreds of thousands of dollars of personal services fees, they can do the implementation and the programming themselves. That's a really great differentiator. And then again, the total cost of ownership. Even our top tier at $149 is 2/3 of the average price in this space. And so that is a clear differentiator. Plus reliability. They're running on the Zoom backbone, which has been proven time and time again to be very resilient and reliable, and all of that adds up to a very clear competitive differentiation. I mean we go up against Microsoft every day. People might -- we align very well, and we partner very well with Microsoft. We also have a great opportunity against them. So I think it's going to continue to play forward, I think, AI being front and center for Zoom, and we can talk more about this, but the federated approach that we're taking, the fact that we don't charge for most AI functionality is included for our customers for free is going to continue to be a big differentiator for us.

Yes. And I definitely do want to talk about AI, it's always topical. But just as we sort of think about the Enterprise and Online segments, I remember couple of years ago, maybe it was 3 years ago, at some of the Analyst Days, we showed sort of some slides that frame the overall market is still being very underpenetrated in terms of million-dollar meetings customers out of, I don't know, the Fortune 2000. Now that we're a couple of years asset, how do you sort of think about the new logo opportunity and like that enterprise expansion. It sounds like a lot of this is going to be driven by cross-sell. You do have, I think, 200,000 enterprise customers, which is a lot. How much remaining new logos is there? And how much kind of cross-sell opportunity is there?

Yes. I think that's the beauty of Contact Center. We saw it in Phone, but now we're continuing to see it with Contact Center and Workvivo, which is every time you have a product that reaches to a different persona you have the opportunity to bring in new logos, and that is really, really helpful for the long-term growth of the platform because then once they're in your Zoom family, right, you have the opportunity to continue to upsell them. So I think you're going to -- the new logo expansion is going to, just like the growth is going to come from more from the new products than from core meetings.

Okay. Got it. And then similar question on online. You talked about how -- obviously, the business is stable today, which is obviously better than declining, but you have aspirations to return that to growth. So on one hand, I think your churn rates were really record low this quarter. So it seems like that's going really well. So it's really the difference to get to that growth coming from the new business side. And how do you sort of think about accelerating the new business side, if I may?

So that's exactly right. We announced that churn in Q2 was 2.9%, which is the lowest that we've ever reported. And that is due to ongoing improvements in the platform and the way that we interact with our customers, the buy flow as well as if you go through the cancellation flow when it prompts you and gives you opportunities for retention potentially. So ongoing growth from here will continue to come from potential improvement in the free-to-pay conversion. That's where AI Zooming, I guess, is running -- our online customers, they get a free trial, but it's only 30 days. The free online customers are getting free 30-day trial. So after that, if they want to continue, they have to upgrade and pay. So there's an opportunity there. There's continued expansion in the market in general. We continue to look for opportunities, expansions with currencies, with payment types, that's been very successful for us in the past. And then just looking for other opportunities to expand the portfolio itself. Obviously, we have organic products that do very well, including Meetings, Scheduler, Whiteboard, Phone, but Contact Center, for example, is probably never going to lend itself to being sold online. It's not the customer profile, and it's not a sales cycle, but it is simple enough generally to be done online. So this is an area we've also thought about inorganically. What are the other areas that small business owners, what else do they use in their day-to-day life and what are other potential productivity tools, marketing tools that they use and thinking about, is there a way to potentially expand it that way.

Yes. And then as we shift to the AI strategy which we hinted that a little bit earlier, can you just frame for investors what your AI strategy? Is it more of a means to sort of accelerate top of funnel and conversion? Or do you see opportunity over time to ultimately charge and monetize kind of separate AI SKUs?

Yes. So Zoom AI Companion is included at no additional cost for our paying customers. We announced on the Q2 call, we have about 1.2 million accounts that evacuated. That's not individual customers, that is accounts, so an account could be [ semic ] or an account could be an individual sole proprietor. And that was up from 700,000 accounts in Q1. So we're continuing to see tremendous growth there. And the way we think about it is the features that exist today, which the most popular one is meeting summaries, which are really great. You can start to take action items now. I can do a summary for you. Is that -- and then there's many other features that extend across the platform. But this is really about the democratization of AI and letting everybody have access to it. And again, especially at renewal -- in renewal discussion with our customers, it's really becoming one of the central topics when they compare to $30 a month from some of our competitors per user, $30 per month per user. It's a lot. So there's that. Now as I mentioned, we do have premium features in Contact Center where we charge for. And I think over time, what you'll start to see is potentially more premium features that also get charged for. A great example of that to be, we've been very public. We don't use any customer data for training our models. But if Citi had data that it wanted to be leveraged for its own benefit, that could be potentially like set up as a separate environment. So it starts to learn your acronyms, the way that you all talk about it, what's the tone and that to be very beneficial for Citi itself. But of course, not for anybody else's use, and so that could be a premium product, for example, that we could offer.

Okay. Got it. And as we think about margins, I guess one question as it relates to AI, I mean you have been publicly talking about some of the GPU cost that are sort of powering some of these AI offerings. How do you sort of think about the monetization and payback period on AI? And then as you think about reaccelerating the business, how do you think about maintaining a healthy level, which is a very healthy level of margin?

Yes. So again, the #1 priority is returning to top line growth and investing organically and potentially inorganically but focused on prioritizing organic investments to drive that. So that means AI is certainly top of the priority list. That's GPUs, that's why you've seen our gross margin come down 100 basis points this year, but it's also AI engineers. So R&D is up a little bit year-over-year. It's also sales capacity. It's our channel, investing in our channel strategy is a really important growth driver for the future, both external programs. We just hired a new leader and internal processes and systems. Those are the top level priorities and areas of investment for some and then being very thoughtful and disciplined around all other areas. If you look at G&A, for example, it's down year-over-year as a percentage of revenue. I'm going to break down this much detail about marketing is also down year-over-year as a percentage of revenue. So just being really, really thoughtful and disciplined about prioritizing what's important and deprioritizing the rest. We don't guide, but internally, we do use the Rule of 40 as a framework just because it's a really easy concept for everybody in the company to understand. And to the extent that we can accelerate top line growth, that means we can invest more to do that. But while we're in this stage, we want to be very thoughtful about the trade-off there and not having spent, get ahead of where our growth trajectory is.

Right. Got it. Speaking of the financials and capital allocation, you have quite a lot of cash on the balance sheet. I know this has been a common question. But how do you sort of think about the M&A environment? I mean I know there was the attempt to buy Five9 years ago. You seem to be having a lot of success with Contact Center now. So I guess as we think about the magnitude of capital outlay for a deal, how are you sort of framing that for investors? And then secondly, what categories are compelling? You talked about how attracting new users and new personas is critical. What would be an example of kind of that new user?

So we do have $7.5 billion of cash on the balance sheet. We have a $1.5 billion buyback that's authorized and we executed a $450 million-ish -- or $430 million or something like that through the end of Q2 against that. And we were able to offset a little more than the dilution in Q2, a little bit under in Q1. So certainly focusing on that. In terms of M&A opportunities, what we've done very successfully in the past are tech tuck-ins. We've done 4 acquisitions to date, 2 were really primarily around talent and 2 were around tech, one of them being Workvivo. And that's worked very, very well to date. We do really appreciate the flexibility this cash gives us if we were to find something bigger, but we have a very high bar around the product and what it brings to our customers. We also look at culture as terms of an indicator of how successful that integration would be and then, of course, valuation, which goes up and down almost daily in terms of what the possibilities are. In terms of areas that are of interest to us, we've looked and we continue to look at things that extend the platform. Our platform has gotten very broad, but you can continue to see opportunities, I think, for more in the productivity suite area potentially. We've also looked at opportunities to verticalize. Health care and education, very specifically are -- have been strong areas for us, strong areas of growth for us, and maybe we could go a little deeper in those areas. So -- and I mentioned online. That's been an area we've also been exploring. So we continue to look, but hold a very high bar. And I certainly understand that, some investors are -- have concern about this. Some investors are very bullish around this. I think it's probably helpful to understand that Eric is really thoughtful about building a business for the long term. And he is a true visionary who thinks about how do we continue to serve our customers best and what does our platform need to look like for that. And that's why he wants both the flexibility, but also would never want investors to be surprised if we were to do something...

Right. And on the point around the capital returns, I mean, business is generating a lot of cash, and obviously, growth has come down quite a bit from the high. How do you think about a buyback that more than offsets dilution? And ultimately, how do you think about just managing dilution longer term given that growth rates have come down to more of a mature growth rate?

Yes. I mean this is a discussion we have every quarter with the Board, of course, and thinking about what is the right level of cash, the right level of buyback. And our goal this year around the buyback was at least to approximate the dilution, which is where we're treading right now. We've also spent a lot of time recently thinking about our overall comp philosophy, making sure that we're aligned with the market, as you can imagine. Comp plans have changed in the last few years as the job market has loosened a little bit. And so we're making some adjustments there to help overall improve, I would say, growth dilution as well as stock-based comp.

Got it. Okay. As we think about the productivity area potentially for M&A, you announced a number of products there, Calendar, Zoom Docs. Walk us through sort of the chat, I believe is another on e-mail. I guess, number one, what sort of the uptake been? And how do you sort of view that strategy in the context of obviously the large productivity leader is very dominant there? And yes, what are sort of the goals providing that?

The goal is that you can start to really spend your day within the client. It's reducing the toggle effects you have back and forth and starting to really understand and appreciate and benefit from the AI functionality that extends across the entire suite once you're in it. So I leverage all of the Zoom products, I literally live within the Zoom client or e-mail for calendar for everything. So it's very, you just get so used that look and feel and how everything is connected, interconnected. Having the ability to be, we have, so I'm sure you're all familiar with in meeting chat, but we also now have the feature that an in-meeting chat converts to a persistent chat. So if you're leveraging the Zoom client, which means that you can see even you miss a meeting, you get it, you can see not only the meeting summary, but you also can see all the dialogue that was happening in the meeting itself. So it becomes a very powerful efficiency driver because it's all there. And then the meeting summary so that asset then also gets saved into that chat, so it becomes your -- like your chat basically becomes your filing system. It's where everything from your day is organized. And if you think about going forward, it used to be you had to choose like meetings platform and you had to choose one of the either G-Suite or Microsoft to run your e-mail and your calendar. Well, pretty soon, I mean, actually today, you wouldn't have to make that choice. You couldn't come to Zoom for all of your needs. They're all there. And at a very -- so the integration -- if you think about the overhead from just running different platforms and all of your users being on it, even the administration of it. Having that holistically to live within Zoom and then the ease of use is associated with it, I think, really has the potential to be a very powerful game changer over time.

Okay. Got it. And sitting on the new product announcement side, and Zoomtopia -- this will be -- Zoomtopia coming up. There's always a lot of interesting product announcements. Anything that you're sort of looking forward to the most or anything investors should expect?

I would encourage you all to join us if you can. We're having a smaller sort of footprint this year, but nevertheless, now is exciting, but I don't want to steal Eric's thunder. So got to leave it for him.

Yes. One of it is we didn't touch on with sort of the international part of the business. And I think, clearly, there's macro headwinds and everything, particularly in Europe. But how do you sort of see the penetration internationally of Zoom Video? What -- how much more runway is that?

Yes. So international has a huge potential for us. As you said, it has been a challenge for the last several quarters. I mean Europe, that whole ecosystem is impacted by having 2 wars, which I can't even imagine how challenging that must be, but it's an area that we continue to invest in. We just hired a new European leader, we opened our London Executive Briefing Center in Q1. So that was really exciting to see. I mean it's ahead of the U.S. The San Jose briefing center is going to open in October at Zoomtopia. So we believe there is significant potential there. The other area that we're really investing in international is channel. So certain markets outside the U.S. channel is the only way that they buy. And we have been a little bit bind, if you will, in developing that because when we were a meetings company, we were 95% direct red. Like it lends itself very well to that sales model. Phone and Contact Center, in certain markets, you have to have a channel and a partner program. And so we're just, those are a little bit nascent in some of those markets, so really focusing on that. So it's -- what I'm saying is there's a lot of potential there. It's an area of strategic focus and investment for us. And I think we're at the early stages still but more to come.

Yes. And as you think about like the legacy meetings customers out there. I mean I'm still surprised by how many Webex meetings I have to join. How does this still exist in 2024 but -- and that's not even from kind of obscure international organizations like some of those are U.S. based. But how do you sort of think about that legacy install rate that's still out there? And are there any type of, I don't know, renewal events or anything that you could point to as -- given that opportunity.

I mean, I think that the reason that those companies are still running on products like Webex is it's the inertia. And so to your point, you have to catch them in a window. Either it's a renewal opportunity, again, I think AI is going to be a key driver for that. Other windows of opportunity to get created is when a Zoom advocate moves to a company that has Webex, for example, that creates an opportunity for us as well. So we're continuously watching, that's the goal of an account executive, whether they're a current customer or a prospect to always stay in touch and understand what's happening, what their objectives are, if there are changes or things that are happening, and that's what we look for in those windows of opportunity.

Got it. With this being your last presentation here at Citi conference as CFO of Zoom, hopefully, next year, CFO, somewhere else is exciting. But I love actually just sort of your framing of kind of the future of work. I know that was a big topic coming out of the pandemic and Zoom had sort of gone all remote and then sort of partially back to the office. But how do you sort of see the world playing out in terms of hybrid work, in office, and how are you thinking about that as you take that to your next company?

I think that the flexibility of hybrid is the future. I think that the productivity enhancements. I can speak for myself, like there's no such thing anymore as work-life balance, right? And the two are melded together. So what that gives me is the opportunity to literally work from anywhere and yet always be connected to my team or if I needed -- I was here last week in New York, and I went to our New York office. We have a workforce reservation system that's integrated into our platform. I can quickly go on there. I can find a conference room that I can use. Like the seamless integration of the office into our platform and into my chat and my workspace is incredible. And I love that. Nobody has to know of it, I mean this is like nobody really has to know or nor do they care where I am physically. They know I'm available because they can go on to chat and they can see my presence. And I think that, what I love about it and when I look at our teams, it has created an opportunity for families to move to places out of high-cost locales like the Bay Area or New York to places they can buy homes. It's allowed. My team members to move close to their families to start their own families because they have support. That was not possible 5 years ago. And I think it just creates a better way of life. I mean you all know I moved back to Texas. And I love the flexibility that I get because of that. I don't work any less. I'd probably only work more because the hours are a little bit different. But for me, my quality of life and being near my family is incredible.

Awesome. Well, maybe in the last 2 minutes, I'll open it up to you -- just if there was any key message you wanted investors to take away how to think about the company.

I've got a lot of questions around like why do I think -- our [ stock ] is greatly undervalued and why I think that is. And I guess what I would say is I certainly understand there's been probably a wait-and-see approach in terms of where we really going to execute the way that we said we work through this reacceleration. And I think we're well on our way to that. I would say the potential of this platform is hard even for me to articulate to all of you. So I would really encourage you if you had the opportunity to come to Zoomtopia or watch the webcast because seeing it in action is really incredible. We say like, I really have this aha moment really recently, where like for those of you that have been around for a long time and to the story, when we were doing the road show we had to demo Zoom because me just saying it's better, it's more reliable, was not enough. But once you saw it, it was like, "Oh, right, that's really different." We're at that stage again with this platform. It's what AI can drive across this platform, seeing the differentiation of Contact Center versus others, it's really powerful. And, we're just at the early stages of what's yet to come. And so the more that you have the opportunity to see it and experience it, I think the more you're going to understand the potential of the company in the future.

Awesome. Well, Kelly, thank you very much for being here. Congratulations on all the momentum and growth you've done at Zoom. And thanks everyone for joining.

Thank you.