Zoom Video Communications (ZM) Q4 2023 Earnings Call Transcript

Zoom Video Communications (ZM 0.05%)
Q4 2023 Earnings Call
Feb 27, 2023, 5:00 p.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Kelcey McKinley

Well, hello, everyone, and welcome to Zoom's Q4 FY '23 earnings release webinar. As a reminder, this webinar is being recorded. And now, I will turn things over to Tom McCallum, head of investor relations. Tom, over to you.

Tom McCallum -- Head of Investor Relations

Thank you, Kelcey. Hello, everyone, and welcome to Zoom's earnings video webinar for the fourth quarter and full year of FY '23. I'm joined today by Zoom's founder and CEO, Eric Yuan; and Zoom's CFO, Kelly Steckelberg. Our earnings press release was issued today after the market closed and may be downloaded from the investor relations page at investors.zoom.us. Also, on this page, you'll be able to find a copy of today's prepared remarks and a slide deck with financial highlights that, along with our earnings press release, include a reconciliation of GAAP to non-GAAP financial results. During this call, we will make forward-looking statements, including statements regarding our financial outlook for the first quarter and full fiscal year 2024; our expectations regarding financial and business trends; impacts from the macro environment; our market position, opportunities, go-to-market initiatives, growth strategies, and business aspirations; and product initiatives and the expected benefits of such initiatives.

These statements are only predictions that are based on what we believe today, and actual results may differ materially. These forward-looking statements are subject to the risks and other factors that could affect our performance and financial results, which we discuss in detail in our filings with the SEC, including our annual report on Form 10-K and quarterly reports on Form 10-Q. Zoom assumes no obligation to update any forward-looking statements that we may make on today's webinar. And with that, let me show you a quick video highlighting our exciting technologies before turning the discussion over to Eric. Kelcey, please queue up the video.

[Commercial break]

Eric Yuan -- Founder and Chief Executive Officer

Wow. That's amazing. Thank you, Tom. And thank you, everyone, for joining us today.

So, FY '23 was a truly pivotal period in our evolution into a full-collaboration platform. As you saw in the video, we launched multiple innovations to help transform the work and expanded our product portfolio to open new markets. Since Zoom Contact Center's release early last year, we have worked hard to expand its features, functionality, and integrations. In Q4, we landed a 2,000-seat contact center deal, our largest to date, truly demonstrating the rapid progress we have made toward becoming a full-fledged contact center solution. And the success of our Zoom One bundle, which we launched last June, contributed to the strong performance of Zoom Phone, which, in Q4, exceeded 5.5 million seats, making us a clear leader in the space. We closed out the fiscal year with the release of Zoom Virtual Agent, an intelligent conversational AI and chatbot solution that we believe will transform the way businesses assist their customers and employees. FY '23 was not without its challenges.

We experienced headwinds in terms of currency impact, online contraction, and deal scrutiny, which continued into Q4. And, a few weeks ago, we made the very tough but necessary decision to reduce our team by 15% and say goodbye to around 1,300 hardworking, talented Zoom colleagues. I want to extend to them my heartfelt appreciation and deepest gratitude for their crucial contribution to Zoom. This painful exercise has been a tremendous learning experience for us. And it allows us to look inward to reset ourselves so we can weather the economic environment with greater focus and agility, deliver for our customers, and achieve Zoom's long-term vision. Now, let me discuss our strategic focuses in FY '24 and beyond. First, we'll help redefine teamwork through offering new immersive experiences that improve employee engagement and modern collaboration tools for ideation across locations and modalities. And we will give teams everything they need through a single pane of glass. Second, the age of AI and large language models has arrived, and we want to empower smarter experiences and workflows that enable our customers to benefit from these transformational tools.

By embedding AI into more workflows, we can provide our customers with richer, more actionable insights that empower them to work smarter and serve their customers better. Zoom IQ, Zoom Virtual Agent, as well as our translation, captioning, and meeting summary tools are just the beginning. We will layer more AI technologies into our products to truly help our customers maximize their ROI on our platform and thrive in this new era of computing. Third, we will offer more and more departments tailored solutions to meet their nuanced digital transformation needs. We constantly solicit feedback, not only from CIOs, but also heads of sales, customer experience leads, and many other leaders across various industries.

Zoom IQ for Sales was built in this collaborative fashion and has already added tremendous value to many sales teams. You can expect additional industry-specific and department-specific applications developed both by us and our third-party partners. All of this comes together as a collaboration platform that unites people to unlock their potential, enables more dynamic and intelligent experiences, and allows us to reimagine productivity and work. As we navigate this period of technological and economic volatility, our role as a trusted partner providing best-in-class unified communications services has never been more crucial. Again, this is a tremendous opportunity in front of us, and we are very confident that our strong foundation, ambitious vision, and customer-centric culture will enable us to seize this opportunity and continue to lead the way in the unified communications and collaboration space. Now moving on to some of our customer wins. I want to thank Aramco, one of the world's leading integrated energy and chemicals companies, for establishing a strategic partnership with Zoom. This is a landmark multi-year partnership where we will provide a full suite of collaboration services including Zoom Meetings, Team Chat, Phone, Events, and Rooms.

In addition, we will work together to build a data center in the region and explore the joint development of innovative technology solutions. We are so grateful that Aramco has chosen to partner with Zoom on their digitization strategy. I'd also like to thank Nasdaq, my favorite company, who has been a Zoom customer for several years. Recognizing Zoom's strong reliability, security, and ease of use, they expanded to Zoom One, our all-in-one unified communications and collaboration bundle. As part of this expansion, Nasdaq will be deploying Zoom Phone and also adding capabilities like Translation and Advanced Whiteboard to their Zoom Meetings. I want to also thank Raymond James, a leading financial services company, for expanding their relationship with us by integrating Zoom Phone to their Zoom Meetings implementation for a more complete communications package. We are excited to work with Raymond James to provide a highly reliable and secure system, enabling their employees to communicate, collaborate, and ultimately thrive in the hybrid work world. I want to also thank Barracuda Networks, which builds cloud-first, enterprise-grade security solutions, for expanding with Zoom.

A long-standing Zoom Meetings customer, Barracuda saw the value of having a single platform for all their communications needs, and upgraded wall-to-wall to Zoom One Enterprise Plus in Q4. In addition, Barracuda also chose Zoom IQ for Sales to enhance sales engagement and Zoom Contact Center to elevate the customer experience. Again, thank you Aramco, Nasdaq, Raymond James, Barracuda Networks, and all of our customers worldwide. And before closing, let me express my warm welcome to Cindy Hoots for joining our board of directors. Cindy brings a wealth of experience and currently is the chief digital officer and chief information officer at AstraZeneca. We are so excited to work with her. I also want to welcome our new chief product officer, Smita Hashim, who joins us from a seasoned executive career at Microsoft and Google.

We are also super excited to work with her. And with that I'll pass it over to Kelly. Thank you.

Kelly Steckelberg -- Chief Financial Officer

Thank you, Eric. And hello, everyone. Let me start with a few of the financial highlights for FY '23 and the results for Q4, and then provide our outlook for Q1 and FY '24. We delivered solid results in FY '23.

Here were some of the highlights. Our enterprise business grew 24%. Our non-GAAP operating margin was 35.9% and we achieved a free cash flow margin of 27%. In Q4, total revenue came in at $1.118 billion, up 4% year over year and 6% in constant currency.

This result was approximately $13 million above the high end of our guidance. The growth in revenue was primarily driven by strength in our enterprise business, which grew 18% year over year and represented 57% of total revenue, up from 50% a year ago. We expect enterprise customers to comprise an increasingly higher percentage of total revenue over time. From a product perspective, we had strong growth in Zoom Phone, coupled with contribution from Zoom Rooms and other products.

Online average monthly churn decreased to 3.4% from 3.8% in Q4 of FY '22, and increased slightly from 3.1% in Q3, as expected, due to seasonality. The number of enterprise customers grew 12% year over year to approximately 213,000. Our trailing 12-month net dollar expansion rate for enterprise customers in Q4 came in at a healthy 115%. We saw a 27% year-over-year growth in the up-market as we ended the quarter with 3,471 customers contributing more than $100,000 in trailing 12 months' revenue.

These customers represent 28% of revenue, up from 23% in Q4 of FY '22, and span diverse industries such as healthcare, education, government, and more. Our Americas revenue grew 10% year over year. EMEA continues to be impacted by the stronger dollar macro headwinds and online performance, which, combined, led to a decline of 9% year over year. APAC, also impacted by the stronger dollar, declined 5% year over year.

Now turning to expenses and margins. A quick note on our GAAP results. In Q4, they included a one-time stock-based compensation expense of $208 million due to the sunsetting of our supplemental grant program, which carries neither dilutive nor tax deduction impacts. Moving on to our non-GAAP results, which exclude stock-based compensation expense and associated payroll taxes, acquisition-related expenses, net litigation settlements, net gains or losses on strategic investments, undistributed earnings attributable to participating securities, and all associated tax effects.

Non-GAAP gross margin in Q4 was 79.8%, an improvement from 78.3% in Q4 of last year and 79.5% last quarter. The sequential improvement was mainly due to optimizing usage across the public cloud and our co-located data centers. For FY '24, we expect non-GAAP gross margin to be approximately 79.5%. Research and development expense grew by 43% year over year to approximately $103 million.

As a percentage of total revenue, R&D expense increased to 9.2% from 6.7% in Q4 of last year, reflecting our investments in expanding our product portfolio. Looking ahead, innovation will remain a top priority for Zoom. Sales and marketing expense grew by 20% year over year to $301 million. This represented an approximate 26.9% of total revenue, up from 23.4% in Q4 of last year.

As part of our restructuring, we are optimizing our go-to-market strategy to better support our enterprise customers and drive additional productivity. G&A expense declined by 12% to $84 million, or approximately 7.5% of total revenue, down from 8.9% in Q4 of last year, as we focused on achieving greater efficiencies in our back office. Non-GAAP operating income was $405 million, exceeding the high end of our guidance and 320 -- excuse me -- exceeding the high end of our guidance of $326 million as we took actions to reprioritize our investments in Q4. This translates to a 36.2% non-GAAP operating margin for Q4 as compared to 39.2% in Q4 of last year.

Non-GAAP diluted earnings per share in Q4 was $1.22, $0.44 above the high end of our guidance. Due to our share repurchase program, our Q4 weighted average share count has decreased year over year by approximately 5 million shares to 301 million. Turning to the balance sheet. Deferred revenue at the end of the period was $1.3 billion, up 11% year over year from $1.2 billion.

This is above our guidance as we saw increased commitments from customers and extended contact durations. Looking at both our build and unbilled contracts. Our RPO totaled approximately $3.4 billion, up 30% year over year from $2.6 billion. We expect to recognize approximately 56% of the total RPO as revenue over the next 12 months as compared to 63% in Q4 of last year.

As a reminder, our annual seasonality of renewals is weighted toward the first half of the year. We expect Q1 deferred revenue to be up 0% to 1% year over year, partially due to the strengthening of the dollar starting late in Q1 of FY '23. Since then, the major currencies we do business in are down 5% to 10% vis a vis the dollar. We ended the quarter with approximately $5.4 billion in cash, cash equivalents, and marketable securities, excluding restricted cash.

We had operating cash flow in the quarter of $212 million, up from $209 million in Q4 of last year. Free cash flow was $183 million as compared to $189 million in Q4 of last year. Our margins for operating cash flow and free cash flow were 18.9% and 16.4%, respectively. Because the Section 174 tax legislation requiring capitalization of R&D expenses was not repealed in FY '23, we incurred an additional cash tax payment in Q4.

Despite this payment, we still exceeded the high end of our previously provided range by $36 million for a full-year total of $1.186 billion. For FY '24, we expect free cash flow to be in the range of $1.2 billion to $1.25 billion. Now turning to guidance. For the first quarter of FY '24, we expect revenue to be in the range of $1.08 billion to $1.085 billion, which, at the midpoint, would represent approximately 1% year-over-year growth, or 2% in constant currency.

We expect non-GAAP operating income to be in the range of $374 million to $379 million. Our outlook for non-GAAP earnings per share is $0.96 to $0.98 based on approximate 304 million shares outstanding. This outlook reflects the three fewer days in Q1 versus all other quarters. For the full year of FY '24, we expect revenue to be in the range of $4.435 billion to $4.455 billion, which, at the midpoint, represents approximately 1% of year-over-year growth, or 2% in constant currency.

We expect our non-GAAP operating income to be in the range of $1.606 billion to $1.626 billion, representing a non-GAAP operating margin of approximately 36%. Our tax rate is expected to approximate the blended U.S. federal and state rate. Our outlook for non-GAAP earnings per share is $4.11 to $4.18 based on approximately 309 million shares outstanding.

Zoom is dedicated to maintaining a careful balance between growth and profitability. We remain committed to innovating our platform, optimizing our go-to-market motions, and evolving our culture to meet the dynamic needs of the market. We are confident that our continued investment in innovation will enable us to provide an even greater value to our customers while also positioning us for sustained growth. Thank you to the Zoom employees, our customers, our community, and our investors.

Kelcey, please queue up our first question.

Kelcey McKinley

Thank you, Kelly. And again, everyone, we will go ahead and move into the Q&A session. [Operator instructions] And our first question will come from Fred Lee with Credit Suisse.

Fred Lee -- Credit Suisse -- Analyst

Hey, there. How're you doing? Can you hear me?

Eric Yuan -- Founder and Chief Executive Officer

Yup.

Kelly Steckelberg -- Chief Financial Officer

Yes. Hi, Fred.

Fred Lee -- Credit Suisse -- Analyst

All right, great. Hey, Kelly, just a question regarding the full-year operating margin guide, which looks like it's coming in around 5 percentage points above consensus. I was wondering if you could break down where those efficiencies are coming from, how much is coming from the rift versus efficiencies and other operating expense line items. Thank you.

Kelly Steckelberg -- Chief Financial Officer

Yes, thank you. So, as I mentioned in the prepared remarks, we started really focusing on driving efficiencies across the business in Q4. As you saw in the results, this came from looking across all third-party spend. And then as we moved into Q1, of course, the reduction.

And so, it's really a combination of that, as well as looking across all of our business processes, including go to market, where there's a restructuring happening to really focus the resources on our enterprise customers and be as efficient as we can in our commercial and small business teams.

Fred Lee -- Credit Suisse -- Analyst

Got it. Thank you. And a quick question for Eric. With regard to everything that's happening in around AI and generative AI, you know, you've talked a little bit about some of the new product areas we're expecting -- where you're expecting some initial impact.

So, how would you -- what kind of analogy can you draw for investors and for us with regard to the uptake of, you know, all things generative AI? A little bit of commentary around that would be greatly appreciated.

Eric Yuan -- Founder and Chief Executive Officer

Yeah, sure. So, yeah, first of all, that's a good question about AI. I think your question about AI sort of reminds me of 1995, 1996. And the narrative was, you know, the first wave of internet revolution.

I was so excited. That's why I moved to setting my body right to embrace that first wave of revolution. And since then, I was a starter for rhythm and collaboration. And today, I can tell you, speaking of AI, I'm as excited as 1995.

Maybe -- sorry, I'm wrong -- maybe more excited than 1995, 1996, giving my engineering and product background. I think AI -- everyone and all sort of faces a challenge. At the same time, also have a huge opportunity ahead of us, right? Given our strong innovation culture, I think AI can truly really help Zoom, right, to evolve us to sort of -- you know, part of the Zoom [Inaudible] journey, right? I think Zoom maybe the first AI company. You know, speaking of specific features of, like, the AI and even before we talked about strategy before we talked about all those AI, actually, we already invest heavily on AI, right? So, you know, some customer may not see that right, like noise reduction, even which background, or a lot of things like that.

Even recently, we are not as efficient on a Zoom smart meeting summary, and where we already leverage in the industry given our ML, right, to improve that experience and we are going to double down, triple down on AI and a lot of features like what in Asia our Zoom people use, our chat a solution, you know, even Canada as well. I think AI can truly empower everything we are doing here, and it will benefit the customers. Plus, you know, we are taking a very open approach. And we have our own AI engineers a lot of [Inaudible] working very hard and also are going to partner with other company.

OpenAI is great a company and it just part of the reason today, and, you know, this is great. Again, I can talk a lot about AI. I am very, very excited.

Fred Lee -- Credit Suisse -- Analyst

Great. Thank you. That was very helpful.

Eric Yuan -- Founder and Chief Executive Officer

Thank you.

Kelcey McKinley

And Michael Funk with Bank of America has the next question.

Eric Yuan -- Founder and Chief Executive Officer

I'm sorry --

Kelcey McKinley

Michael, you're muted.

Michael Funk -- Bank of America Merrill Lynch -- Analyst

I'm unmuted on my phone.

Kelly Steckelberg -- Chief Financial Officer

Now we can hear you, Michael.

Michael Funk -- Bank of America Merrill Lynch -- Analyst

OK. Thank you, Kelly. So, first for you, Eric, you know, you have a trend of cash balance that's a huge strategic asset for Zoom, you know, specifically, today, when a lot of your competitors don't have that optionality. So, what is the argument, in your opinion, against deploying that cash to further your advantage and improve your capacity?

Eric Yuan -- Founder and Chief Executive Officer

So, yeah, when it comes to money, better to delegate to Kelly probably. It's better to have a manager.

Kelly Steckelberg -- Chief Financial Officer

Thank you, Michael. I don't think there is any argument against deploying our cash, certainly, to continue to advance our technology, advance our customer base. And as I said, we are constantly looking for opportunities. And as I've mentioned in the past, we have kind of, you know, three main criteria, of course, we look at.

We look at the technology as we want to make sure that we would be providing our customers something that works as well as the core of Zoom does today, the core Zoom platform. We look at the culture to make sure that the organizations could come together very, very well. As you know, we take culture so, so seriously here, and Eric and the whole executive team have spent a long time focusing on building that. And then, last but certainly not least, is valuation.

And that has been tricky in the past. We've seen great assets that we loved but just couldn't get there as, unfortunately, all of you know. And so, we now see that becoming easier and easier. So, I will tell you that Sanjay and his team have been very busy continuing to look for targets for us, and it certainly is a part of our strategy that we're considering for FY '24.

Michael Funk -- Bank of America Merrill Lynch -- Analyst

Great. Thank you for that, Kelly. Kelly, while I have you, back to an earlier question about the delta and operating income, fiscal '23 to fiscal '24, you know, we estimated earlier this month about a $260 million benefit from the rift. Is there an issue with my math around that?

Kelly Steckelberg -- Chief Financial Officer

You know, we're not going to get into the specifics around the reduction. I will tell you, it was pretty consistently applied across the company, the 15% that Eric mentioned, across the organizations, as well as U.S. and some of our other locations outside of the U.S. So, you can take that into consideration as you're calculating what you think the savings are.

Michael Funk -- Bank of America Merrill Lynch -- Analyst

Great. Thank you, Kelly. Thank you, Eric.

Eric Yuan -- Founder and Chief Executive Officer

Thank you.

Kelcey McKinley

We will now move on to Meta Marshall with Morgan Stanley.

Kelly Steckelberg -- Chief Financial Officer

Hi, Meta.

Meta Marshall -- Morgan Stanley -- Analyst

Hey. Great. Thanks. Maybe, Kelly, just for you to start with, you know, maybe versus where we were 90 days ago when you were kind of talking about lower to mid-single-digit potential for fiscal '24.

Just trying to get a sense of, is -- kind of the incremental conservatism, is that more around the enterprise or the online business, particularly given that you did see some kind of stabilization in the online business in the quarter?

Kelly Steckelberg -- Chief Financial Officer

Yeah, I guess -- I don't know that I would say. I mean, remember, on the Q3 call, we weren't specifically giving guidance. We were trying to help sort of give, I think, a little bit of visibility. But we were still right in the midst of doing our FY '24 planning.

So, as, you know, we continue to work on that with all of the go-to-market teams and also, you know, made this decision around the team and the reduction, putting all of that together came up with, you know, what we've now guided to. And, you know, we do continue to see headwinds that we spoke about. Of course, currency is still a challenge, and we're going to see some -- you know, as compared to year over year we're to see some impact in Q1 because, remember, the dollar really started to strengthen the back half of Q1 last year. So, you should expect to see some year-over-year impact there, as well as just these changes in especially the go-to-market teams right now, making sure that we get everybody lined up and looking at where that is, all of that was considered as we set the FY '24 guidance.

Meta Marshall -- Morgan Stanley -- Analyst

Got it. And then maybe, Eric, in the past, you guys wanted to have kind of this singular Zoom platform and let the third-party apps be where you would kind of do the departmental or vertical industry use cases. And it sounded like there was some departure from that. So, I guess I just wanted to get a sense of, are there going to be different Zoom additions for kind of some of these different verticals.

or will it still kind of be largely third-party driven?

Eric Yuan -- Founder and Chief Executive Officer

Yeah, I think that's a good question. First of all, I don't see it that, you know, as a departure to what are we trying to do before, so meaning it's more of augment of what we're doing now. Because given there's a lot of new opportunities, I do not think everything should be done by our, you know, own developers, right? That's why, you know, I also want to leverage third party. I do not mean that as strategy, just more to augment, you know, what we are doing today.

Meta Marshall -- Morgan Stanley -- Analyst

Great. Thanks.

Eric Yuan -- Founder and Chief Executive Officer

Thank you.

Kelcey McKinley

And just as a reminder, please limit yourself to one question in order -- in an effort to hear from everyone. And we'll go ahead and we'll move on to Mark Murphy with J.P. Morgan.

Mark Murphy -- JPMorgan Chase and Company -- Analyst

Thank you so much. So, you've added so much value into the product. When we look at the amount of recording storage, the whiteboarding, you have Mail and Calendar client, and so much more that's on to come. Could you update us perhaps on your pricing strategy and whether you think this could be the right time to perhaps increase prices a bit or even to just go out and maybe activate a CPI adjustment that would benefit you?

Eric Yuan -- Founder and Chief Executive Officer

Yeah, go ahead. Please go ahead.

Kelly Steckelberg -- Chief Financial Officer

Sure. We have announced a price increase for our online customers that will be effective -- I believe the date is March 1st. We announced it last -- earlier this month. And we believe that reflects -- and that's only for monthly customers, not for annual customers.

And we believe that starts to reflect the value, as you said, that we have created for our customers over the last few years. It's been many, many, many years -- it predates me -- since the last time there was a price increase. And then, on the enterprise side, you know, we did a pricing update, you know, all-inclusive with Zoom One, the bundle that we came up with last year. And we believe that really reflects the best way for our customers to buy and to get full value out of the platform.

And, you know, that considers all of the products that are included and what we feel is an appropriate price point at this time.

Mark Murphy -- JPMorgan Chase and Company -- Analyst

OK. But so, nothing planned outside of Zoom One on the enterprise side, and nothing more material than what you had already announced?

Kelly Steckelberg -- Chief Financial Officer

Yeah, that's right.

Mark Murphy -- JPMorgan Chase and Company -- Analyst

Thank you.

Kelcey McKinley

And Piper Sandler's James Fish has the next question.

Quinton Gabrielli -- Piper Sandler -- Analyst

Hey, thanks, guys. This is Quinton for James Fish. You know, in terms of the longer-term vision for Zoom, how is the team thinking about the maturity of the core Meetings and Phone products at this point, especially following what was a really strong Phone quarter in Q4? You know, do we need adoption of emerging products like Contact Center and email or Calendar to reaccelerate growth as we look to '25 and '26, or other catalysts that can help the core products kind of reaccelerate from the guide in 2024 levels? Thank you.

Eric Yuan -- Founder and Chief Executive Officer

I think -- great question. I think we should focus on both. You know, when you think, the Phone, for example, the market, you know, potential is still huge, you know, and we are doing extremely well. And we will have more because given the product, you know, very reliable and is great innovation and better than any other phone service providers.

That's why, you know, on core part, I was thinking a huge growth opportunity. I mean, I saw that at Newport, like, a Zoom Contact Center of which you have seen, as you might see, was down the road of more and more department applications, in particular, AI and is now a greater layer. I feel like a lot of a new opportunity ahead of us. You know, I think in the second half of this year, probably, you know, that, you know, transition period for us, you know, given that, you know, we launched the lens mechanism early last year, Zoom IQ, [Inaudible] as well.

All the new services plus new services in the pipeline, I think, will help us. You know, we need to focus on both. The reason why, you know, our willingness to go, be an all-in-one collaboration platform, right? You can live within a Zoom interface and can get most of the work done, right? I think that's our reason, so.

Quinton Gabrielli -- Piper Sandler -- Analyst

Thanks. That's very helpful.

Eric Yuan -- Founder and Chief Executive Officer

Thank you.

Kelcey McKinley

And Rishi Jaluria with RBC has the next question.

Rishi Jaluria -- RBC Capital Markets -- Analyst

Hi. Wonderful. Thanks so much for taking my questions. I just wanted to have one, which I wanted to dive a little bit deeper into some of the new features that you're seeing in the market.

When we think about Chat, Mail, calendaring, just to the extent possible, I would love to hear what have you seen in terms of actual uptake rates of these features, right? Because it's available to anyone who's on Zoom One, but how many probably are actively using it? And if you think about those customers who are using these additional features or modules, what are you seeing from those customers in terms of anything like engagement, time spent on the platform, retention or expansion rates, anything like that? Because I think that would really help us get some color into your ability to expand into a broader enterprise communications approach on top of that. Thank you.

Eric Yuan -- Founder and Chief Executive Officer

Yeah, Yeah, that's a good question. First of all, I would say, last year, we developed more than 1,500 features. I think our team worked extremely hard. But one thing we did not do well, I think we should improve, a read about product adoption, and not only offer -- finish the better features, we also need to remember, the customers may not know it.

Again, this is something important for us this year. I'm excited that a lot of customers, you know, in order for them to take in lot of new features, take Nasdaq for example, right, they would like to consolidate like, you know, Meeting with a Whiteboard as well. You know, it has a Whiteboard. You know, we really like that, right? And also, another feature, we also have Team Chat, which is a [Inaudible] chat solution.

I -- we use that for many years. A lot of enterprise customers also deployed, why do they want to pay for other services other than [Inaudible] Zoom is very scalable. You know, also we're flexible, the grid and Team Chat solution. After they found that, they [Inaudible], they also adopt all of those features, you know, a lot of things like that.

And you know, not to mention the sales department, right? And obviously, Zoom IQ for Sales opportunity. Again, a lot of innovations. But again, you know, focus on product adoption. Let a customer know that huge value, you know, from the Zoom platform, right? So, that's something we need to focus on.

And, you know, quite a few -- or use Zoom Team Chat. I can tell you, again, much better, Whiteboard as well. So, anyway, a lot of features, innovations, we should focus on adoption.

Rishi Jaluria -- RBC Capital Markets -- Analyst

Got it. Thank you.

Eric Yuan -- Founder and Chief Executive Officer

Thank you.

Kelcey McKinley

And we will now hear from Matt VanVliet with BTIG.

Matt VanVliet -- BTIG -- Analyst

Yeah. Good afternoon again. I guess, something on that last point, Eric. Curious, maybe if you could share a few details or some of the winning points around the Contact Center product.

What's driving the adoption there? Are you seeing replacing, you know, existing contact centers or some of these sort of net new where, you know, video is going to be a key component, whether it's field service or things of that nature, where video really lends an extra help to it?

Eric Yuan -- Founder and Chief Executive Officer

Yes, it's a good question. So, on product front, right, so, you know, we are -- we launched early last year, right, almost one year anniversary now. I think we are going to keep innovating. You know, kind of essentially, today, you look at our -- you know, the Contact Center customer, we just include the 2,000 seats Contact Center solution, like, everything is kind of, wow, Zoom kind of only works very well, not only, you know, for the, you know, -- just like early last year, we went in quite a few deals for an internal IT [Inaudible].

This is, you know, for their -- you know, a support agent, right. A lot of features already built in. I think the product front and the more and more features, very quickly, I think we are doing very well. You know, I have a huge confidence for our team, product team.

Now, over to the go-to-market side, I think you know we should have done a better job, you know, to be honest with you, right? And, you know, of course, the buyer is different. The good news, you know, over the past 12 months, we learned a lot, you know, working in sort of a change, our go-to-market strategy, right? And, you know, make sure, you know, all those traditional customers, no matter which, you know, on-premise, have been deployed, all the kind of Contact Center are deployed. We should let them know, right, Zoom has a very scalable Contact Center solution, you know, like a -- you know, those, you know, third-party resellers, right? And also, you know, to be able to, you know, change our go-to-market a model for Contact Center because the product works so well. So, now, that's a part of, you know, I think we need to focus on this year.

Matt VanVliet -- BTIG -- Analyst

Great. Thank you.

Eric Yuan -- Founder and Chief Executive Officer

Thank you.

Kelcey McKinley

And our next question will come from Tyler Radke with Citi.

Tyler Radke -- Citi -- Analyst

Thanks for taking the question. So, clearly, the profitability guidance was much stronger than consensus. And, you know, you've talked about some of the hard decisions you've made as it relates to restructuring. Kelly and Eric, I'm wondering just about your willingness to kind of expand margins from here.

Obviously, you're guiding to a pretty low revenue growth for the coming year of about 1%. But how do you just think about the puts and takes on future margin expansion from here, you know, in a scenario where you don't get a reacceleration in total revenue?

Kelly Steckelberg -- Chief Financial Officer

You know, Tyler, we're always focused on being as efficient as possible in our gross margins. And you've seen, you know, we said we expect to be 79.5% for next year, which is right on top of our long-term target margins. In terms of our operating margins, we want to always watch for opportunities for investment and top-line growth because that's really what we are driving for. So, we will continue to make these decisions and, you know, watch for opportunities throughout the year.

If we see opportunities to invest in go-to-market, maybe channel programs, anything that we can do to drive top-line growth, that would be our first priority. But as we said in the prepared remarks, we're going to balance that with profitability. So, we're certainly committed to the guidance that we set. I don't think we're committing to expanding beyond that today as, again, our first priority is continuing to accelerate through, you know, go-to-market efficiencies as well as expand -- continuing to expand our product portfolio.

Tyler Radke -- Citi -- Analyst

Got it. Thank you.

Kelcey McKinley

At UBS, Karl Keirstead has the next question. But, Kelly and Eric, he's on audio only, so he won't appear to you via video. Karl, go ahead.

Karl Keirstead -- UBS -- Analyst

Oh, I'm good. Thank you. Sorry.

Kelcey McKinley

No problem at all, Karl. Thank you so much for letting us know. In that case, we'll move on to Siti Panigrahi with Mizuho.

Siti Panigrahi -- Mizuho Securities -- Analyst

Hey, thanks for taking my question. Kelly and Eric, so what do you think about this year growth? I know you're expecting some in the online segment to kind of bottom at some point. So, what's your expectation when you think about online segment versus enterprise? And I know this is -- again, renewal will come in Q1 and Q2. And what are you now pushing to now customer during renewal? I know, last few years, it is Phone.

And so, what other products you are right now pushing during renewal?

Kelly Steckelberg -- Chief Financial Officer

So, in terms of the expectations for online this year, they are consistent with what we've been saying for the last couple of quarters, which we expected it to stabilize during mid-next year from a dollar amount, meaning starting to see the year -- we've seen it continue to decline quarter to quarter from a dollar perspective for the last probably five or six quarters. And when we get kind of like Q2 to Q3 of next year, we expect to see that start to stabilize, which is great when you look at all the initiatives that are in place. And then, I'm sorry, the last part of your question about renewals was about?

Siti Panigrahi -- Mizuho Securities -- Analyst

Yeah, also, enterprise part of the business, how you think about the growth and renewal.

Kelly Steckelberg -- Chief Financial Officer

Yes, so renewals or not, right, there's always an opportunity to talk to our enterprise customers around Zoom One, the platform bundle, which we think is a great opportunity for our enterprise customers to, you know, help our prospects and customers understand the full features of the platform. And then, of course, there is a natural opportunity to do that as they're going through the renewals period. And, you know, as we guided, we expect renewals to be strong in Q1. However, there is going to be that impact of currency that, you know, we've already experienced for Q2 through Q4.

But importantly, we have one more quarter against the previous-year comps that there's going to be some impact and some headwinds there.

Siti Panigrahi -- Mizuho Securities -- Analyst

Great. Thank you.

Kelcey McKinley

And Sterling Auty with SVB MoffettNathanson has the next question.

Sterling Auty -- MoffettNathanson -- Analyst

Thanks so much, guys. Hey, Kelly, maybe just to clarify on that last answer, now that we're in fiscal '24, on that online answer you just gave, you meant that we'd see the turn Q2, Q3 of this fiscal year, correct, not --

Kelly Steckelberg -- Chief Financial Officer

Sorry, did I say 20 -- yeah, this fiscal year, yes, FY '23.

Sterling Auty -- MoffettNathanson -- Analyst

Just want to make sure people didn't think fiscal '25 [Inaudible].

Kelly Steckelberg -- Chief Financial Officer

Not FY '25, no. Thank you for clarifying. Yes.

Sterling Auty -- MoffettNathanson -- Analyst

You're welcome. So, in terms of question, I want to take the other side of it and go to the enterprise. What's been -- what's built into the expectation for full-year revenue around the enterprise? And maybe dive into, you know, at least some qualitative commentary around net retention and what you expect on renewals from customers and what you're expecting from contribution of new customers. So, what needs to happen for the enterprise to deliver that side?

Kelly Steckelberg -- Chief Financial Officer

So, we expect renewals -- we talked about renewals over the last year, the last 12 months. And we expect them to consider -- continue at kind of at the same rate. And what we've mentioned in the past is that we have seen some contraction in seats as organizations, you know, around the world are experiencing reductions, so working with them on that. But on the other side, the opportunity to really bring a lot of value to our customers through our total cost of ownership, which includes expansion of the total portfolio, so, as you saw, Phone really, really resonating very well, especially in this economy.

And Contact Center, while it's still small, small from an absolute dollars perspective, you know it doubled -- the ARR for Contact Center doubled from Q3 to Q4. So, again, small relative dollars but really exciting to see it coming into its own, and that -- we expect that to continue to contribute through all of this year but then really start to accelerate from a contribution perspective in FY '25. And I do mean FY '25 in that comment. And then, of course, there's Zoom IQ for Sales as well, which is on a kind of a similar trajectory in terms of Contact Center, that small dollar contribution but, you know, also accelerating in terms of its overall growth.

Sterling Auty -- MoffettNathanson -- Analyst

Got it. Thank you.

Kelly Steckelberg -- Chief Financial Officer

Yup.

Kelcey McKinley

And we'll now hear from Matt Stotler with William Blair.

Matt Stotler -- William Blair and Company -- Analyst

Thank you, Kelly and Eric. Thank you for taking the question. Maybe just one on -- a follow-up on Zoom One. You mentioned some strength there.

Obviously, you're relatively early days, couple of quarters in. I would love to get some color on, you know, maybe the portion of new customers who are going with the Zoom One bundle versus other, you know, passed to buying Zoom products. And then, what the characteristics are that you're seeing of those early adopters, right, both in terms of, you know, customer size, you know, whether they're, you know, adopting that for specific departments and rolling that out like you've seen to core Meetings product historically. Any color there would be helpful.

Kelly Steckelberg -- Chief Financial Officer

I think what's amazing and really interesting about Zoom One is it's not just new customers that are buying the Zoom One bundle. It's existing customers as well that are upgrading. And as a reminder, it includes Zoom Meetings, but also Zoom Phone. It includes Team Chat and Whiteboard.

So, really starting to see customers embracing the full effects of the platform. We have a Fortune 10 customer now that is a long-standing customer of ours that moved on to the Zoom One bundle and has standardized on Zoom Team Chat, which we're super excited to see. So, that's the example of what starts to happen when these customers are really exposed to the full value of the platform that we can bring to them. And I don't know exactly the percentage of how it broke out in Q3 -- Q4, but it is really starting to take the lead in terms of how our enterprise sales teams are selling.

Matt Stotler -- William Blair and Company -- Analyst

Very helpful. Thank you.

Kelly Steckelberg -- Chief Financial Officer

Anything you want to add, Eric?

Eric Yuan -- Founder and Chief Executive Officer

No, it's great. Thank you.

Kelcey McKinley

Moving on to Kash Rangan with Goldman Sachs.

Kash Rangan -- Goldman Sachs -- Analyst

Hey, thank you so much. Good to see you guys. Eric and Kelly, I sort of understand how we should reconcile the guidance going forward vis-a-vis what seems to be pretty close to the anniversary effect of the SMB attrition. And then, we should start to really narrow the growth of the so-called enterprise business, but the guidance still seems to be quite conservative.

And just help us understand what might have happened at a higher level incrementally relative to this anniversary effect, and what we should be seeing by this time, a real acceleration of the business. Thank you so much.

Kelly Steckelberg -- Chief Financial Officer

Sure. So, one thing to remember, Kash, is that while we are expecting the online portion of the business to stabilize from a dollar perspective during the year, it is still down year over year because of what happened in FY '23 where it was much higher -- the dollar amounts were much higher in those earlier quarters as it came down. So, we still have the unfortunate impact of the online segment of the business tamping down the growth of the enterprise business. And so, that's what you're seeing reflected there.

And so, you know, the stabilization that occurs this year will really help as we look forward to next year, which we've always said is sort of reacceleration of the back half of this year into FY '25. And, you know, that's what we see in our internal models today.

Kash Rangan -- Goldman Sachs -- Analyst

Got it. Curious, Kelly, why does it take till fiscal '25 to see the effect -- the net effect to be positive? Can you help us understand the timing of why it takes another year from now?

Kelly Steckelberg -- Chief Financial Officer

Well, there's the combination of, first of all, online is still down year over year. And so, you're not going to start to see the year-over-year stabilization of online until the back half of the -- even though the dollars are stabilizing, right, the year-over-year comparables are still down until the very back half of this year. And then, while we've seen all the strength we've talked about in Zoom One and Zoom Phone, part of the expected growth is coming from these other newer products that are still -- so, they're doing great, you know, all positive indicators, but they're still so early in their trajectory that, if you remember and think about where Zoom Phone was in its second year of life, that's where Zoom Contact Center and -- you know, might queue for sales. And now, you see Zoom Phone, which is about to turn four, I believe, how it's really contributing.

So, we've just got a little time ahead to get those products turn and really contributing.

Kash Rangan -- Goldman Sachs -- Analyst

Got it. Thank you so much. Very clear. Appreciate it.

Kelly Steckelberg -- Chief Financial Officer

Thank you.

Kelcey McKinley

We'll now hear from Bernstein's Peter Weed. Peter, please go ahead.

Peter Weed -- AllianceBernstein -- Analyst

Thank you. Maybe I'll follow up on that and kind of reinforce, you know, what appears to be a reasonably conservative revenue guide this year when we start to think about some of the things you've chatted about earlier in this conversation, and everything from stabilization in the online business, which may even do better than that, perhaps, hopefully with some of the pricing increases that go on, all of the product that you've been shipping, you know, these types of things. And when we take into account the fact that, you know, a year ago on the top line, you know, this business was, you know, even a little bit smaller than what we're anticipating quarter one this upcoming year might be, you know, help me understand why we would do as bad, I guess, as only a 1% year over year. Like, what's the downside case that gets us there? Or is this, you know, more of an opportunity to perhaps start to see some of the lift coming out of here? Thank you.

Kelly Steckelberg -- Chief Financial Officer

So, remember, for Q1, there is the definite impact of being three fewer days, which, you know, has a real impact as compared to -- three fewer days of rev rec, as well as the impact of currency, which we didn't have last year. So, that year-over-year impact is going to definitely be visible in Q1 of FY '24. And then, we continue to see in the enterprise, you know, elongated sales cycles, deal scrutiny. I was sort of laughing with a fellow CFO, saying this is the year of the CFO because I have gotten invited to speak at more sales kickoffs this year than you can imagine because every sales team is having to learn how to sell to the CFO and including ours.

And that is exactly the experience that we're having. And so, you know, it just means they're taking a little bit longer and everybody's being very, very thoughtful about their purchases. And so, all of that was taken into consideration, as we said, in our full-year guidance.

Peter Weed -- AllianceBernstein -- Analyst

But I guess, you know, many of those things are stuff, I guess, in the second half of this year you have been addressing and are kind of carrying forward. So, they're not kind of brand-new. You know, I would think that some of this, unless you are anticipating another leg down, for some reason, are there any additional legs down relative to things that you've been already seeing in the business? Or is this just conservatism on, like, we just don't know how long this stuff's going to really be impacting, and we can't really say how much people are going to be, you know, purchasing the Zoom One bundle, you know, which is kind of the standard thing that you're putting out, really, how well people are going to react to price increases this year so that it's really created a floor on which we hope to do better then?

Kelly Steckelberg -- Chief Financial Officer

I definitely think there is a question as to the state of the economy. And when it comes to investments, while we think we are incredibly well positioned with our total cost of ownership and the value that we bring to our customers, everybody is being very cautious until there's better visibility about, you know, the potential of a recession or not and where we're going to come through this. And we expect that could, you know, impact us at least through the rest of this year.

Peter Weed -- AllianceBernstein -- Analyst

Thank you.

Kelly Steckelberg -- Chief Financial Officer

Yeah.

Kelcey McKinley

Taz Koujalgi with Wedbush has the next question.

Taz Koujalgi -- Wedbush Securities -- Analyst

My question -- two questions. One for Eric. Eric, when you -- you spoke about Zoom One traction in the quarter. And pretty early, but I understand that when you sell a customer Zoom One from Zoom Meetings, what is the typical uplift you're seeing in the deal sizes? Let's say somebody has Zoom Meetings today and went with the Zoom One, what is the kind of the uptick you get in the deal value there?

Eric Yuan -- Founder and Chief Executive Officer

Yeah, normally -- it's a good question. It comes from upmarket opportunities, right. And all of our SMB customers, you know, they do not use like Whiteboard and/or some other, you know, core features as the enterprise customer. You know, given the economic uncertainty and the China cost reduction, they would like to consolidate, like, into one platform, right? And most are, too, from a total window perspective when they look at a Zoom product, they're trying to understand what then are the services, features they can leverage more.

And then, also, ties on, like, Whiteboard, and Team Chat, Contact Center who might people use, so, you know, more and more of a opportunity. This is great time for those upmarket, you know, customers, especially, you know, commercial and enterprise customers, right? Because they only trust our brand. They know those services take a viable form, you know, for example. They know we keep innovating.

They know our service will be better than others. They know [Inaudible] viable, that this is a great example, so.

Taz Koujalgi -- Wedbush Securities -- Analyst

So, the only deals that we've had so far, what is the uplift you see in, I guess, dollars you're getting from the customer? How much from it you see typically, you know, I guess as an uptick factor, that if somebody goes from just using Zoom Meetings to using Zoom One, what is the, I guess, the upsell or the uptick in the deal value?

Kelly Steckelberg -- Chief Financial Officer

It really depends on the customer. The thing that I would point out, though, is it's not just the uplift in the dollar amounts, it's the retention that we see, which is really important to us as customers that have more -- I mean, remember at Analyst Day, we showed that chart that, like, I can't remember exactly what it is, more than 50% improved retention rates when they have more than one product deployed. And so, the value of us having a broader platform in there, including the ones that are much more retentive, like Zoom Chat and Zoom Phone, really brings a lot of value to us.

Taz Koujalgi -- Wedbush Securities -- Analyst

And just one follow-up, guys. Typically, we see customers -- companies having free cash flow margins higher than operating margins. Yours reversed last year. And I think you had a drag from cash taxes and stock-based comp.

Kelly Steckelberg -- Chief Financial Officer

Yeah.

Taz Koujalgi -- Wedbush Securities -- Analyst

Is that -- again, your guide implies free cash flow margin, I believe, lower by about 9 points from operating margin. Does that reverse at some point in the future, or we see that as more of a permanent [Inaudible]?

Kelly Steckelberg -- Chief Financial Officer

Given that we are a cash taxpayer for here to eternity, now, I think you're likely to see it be slightly under. But what we're getting back to, which was very disrupted last year, is a more normalized relationship between those two as we're on more of a normal course now from a cash tax perspective.

Taz Koujalgi -- Wedbush Securities -- Analyst

Thank you.

Kelcey McKinley

Moving on to Matthew Harrigan with Benchmark.

Kelly Steckelberg -- Chief Financial Officer

Hi, Matthew.

Kelcey McKinley

Matthew, you're currently muted. If you'll come off the phone, [Inaudible].

Matthew Harrigan -- The Benchmark Company -- Analyst

Oh, I'm sorry. I tried to take myself out of the queue. I sent a message, but evidently, it [Inaudible], sorry.

Kelcey McKinley

No problem at all. Thanks, Matthew. See you next time. All right, we'll go ahead.

And in that case, move on to William Power with Baird. William, if you'll go ahead and turn on your video and come on the view for us.

Will Power -- Robert W. Baird and Company -- Analyst

Great. Thanks for squeezing me in. A lot of my questions have been answered, but I did want to ask about Zoom Phone, look like a particularly strong quarter. I think, you know, the push around Zoom One is probably helping, but be great to get any other perspective on what seems to be a nice acceleration there in Zoom Phone adoption.

And then, any color you were able to provide just around pricing trends, and when does this become a 10% revenue component?

Kelly Steckelberg -- Chief Financial Officer

In terms of when it's going to become 10%, it's sometime early this year and FY '24. And, you know, we are very excited about the momentum. You know, we had 100% year-over-year growth in the product. And that gets -- it's back to, even in this economy and especially in this economy, companies looking for opportunities to standardize on one vendor and also because there is a lot of value to be gained by getting rid of those on-prem servers, as well as the very disruptive price point that we have all the way around.

It's just proving to be very, very attractive. And as Eric mentioned, there's still a lot of opportunity and market available. So, we expect that to continue. And I don't know it's going to take you -- and just as a reminder, everybody, Q2 and Q4 tend to be our really key quarters in terms of Zoom Phone adds.

So, while we had an amazing number of additions in Q4, I don't expect that necessarily to be the new bar. You know, we expect it to be seasonally down in Q1 but still very excited that the momentum continues to be up and to the right.

Will Power -- Robert W. Baird and Company -- Analyst

Thank you.

Kelcey McKinley

From JMP Securities, Patrick Walravens has the next question.

Pat Walravens -- JMP Securities -- Analyst

Oh, great. Thank you. I have a really fun question for Eric. So, Eric, in 2021, you guys invested in Cvent before their deal, and you also invested in Monday.

So, how do you feel about those two spaces today? How do you feel about event technology and how do you feel about collaborative work management?

Eric Yuan -- Founder and Chief Executive Officer

So, given this is a fun question, maybe I should launch ChatGPT, let it answer your questions better, so it might give you a fun answer? Well, anyway, I think Monday.com is interesting, right? Because the reason why we invest in a lot of our customers, you know, we also -- you know, especially in Europe, right, also deployed our service, you know, with -- you know, they integrate with us. And also, they also do Zoom customer as well, I think, as far as I know. And, you know, I think it's more, like, from a customer perspective, they want us working together, right, to integrate, like, that's the reason why you invest in them, right? Cvent, for example, and you do know Clovers, right, and a lot of customers deployed, you know, our Zoom Webinars, Events. And especially, you know, for those like hybrid events, right, you know, in-person events, they are more like a pure technology platform, right? We also need some other components to help to make sure we have a -- you know, streamline your events management.

That's why we partnered with Cvent, to see the opportunity to further solidify our relationship. Why not to invest in them? I think given now is, you know, more and more company support of hybrid work, I think Cvent -- I think they would do well, and that's another reason why we invest in them. Yeah, so that's pretty much -- maybe my answer is not as fun as ChatGPT, but that's pretty much I can do, sorry.

Pat Walravens -- JMP Securities -- Analyst

Great. Thank you.

Eric Yuan -- Founder and Chief Executive Officer

Thank you.

Kelcey McKinley

And we do have time for one additional question that will come from Ryan MacWilliams with Barclays.

Ryan MacWilliams -- Barclays -- Analyst

Appreciate you squeezing me in. My question is kind of in the same spirit as Pat's question. But, Kelly, it looks like you filled the remaining amount of your share repurchase authorization this quarter. I guess how are you thinking about a new authorization for a buyback? And in terms of M&A, would Zoom potentially look at acquisitions where you already have a competing product today, or are you already looking at adjacent solutions? Thanks.

Kelly Steckelberg -- Chief Financial Officer

In terms of M&A, we look at both, you know. We've been very successful in the past by buying those technology tuck-ins to accelerate our development, as you've seen with the Solvvy acquisition, which has been a great accelerant for us in terms of Contact Center and continue to look at those, but also looking at other areas that there might be leaders in the space that make sense for us. So, we're continuing to look at both. And we every -- you know, every quarter, we talk to our board about our capital allocation strategy.

And of course, M&A is at the top of the list. We do not, as you indicated, have a buyback authorization in place today. You know, we will continue to look for opportunities to deploy our capital in the best way possible for our investors. And right now, we -- you know, again, as I said earlier, our No.

1 focus is reaccelerating top-line growth and making sure that we have the flexibility to do that if -- you know, if opportunities arise. And so, that's why, for the moment, we've decided to hold at least on requesting an authorization for a buyback.

Ryan MacWilliams -- Barclays -- Analyst

Appreciate the color. Thanks so much.

Kelcey McKinley

And again, everyone, that does conclude our Q&A for today. I'll go ahead and pass it back to you, Eric, for any closing or additional comments.

Eric Yuan -- Founder and Chief Executive Officer

Oh, thank you all. I really appreciate all the time. I love you all. Thank you.

Take care.

Kelly Steckelberg -- Chief Financial Officer

Bye, everybody.

Eric Yuan -- Founder and Chief Executive Officer

Thank you.

Kelcey McKinley

[Operator signoff]

Duration: 0 minutes

Call participants:

Kelcey McKinley

Tom McCallum -- Head of Investor Relations

Eric Yuan -- Founder and Chief Executive Officer

Kelly Steckelberg -- Chief Financial Officer

Fred Lee -- Credit Suisse -- Analyst

Michael Funk -- Bank of America Merrill Lynch -- Analyst

Meta Marshall -- Morgan Stanley -- Analyst

Mark Murphy -- JPMorgan Chase and Company -- Analyst

Quinton Gabrielli -- Piper Sandler -- Analyst

Rishi Jaluria -- RBC Capital Markets -- Analyst

Matt VanVliet -- BTIG -- Analyst

Tyler Radke -- Citi -- Analyst

Karl Keirstead -- UBS -- Analyst

Siti Panigrahi -- Mizuho Securities -- Analyst

Sterling Auty -- MoffettNathanson -- Analyst

Matt Stotler -- William Blair and Company -- Analyst

Kash Rangan -- Goldman Sachs -- Analyst

Peter Weed -- AllianceBernstein -- Analyst

Taz Koujalgi -- Wedbush Securities -- Analyst

Matthew Harrigan -- The Benchmark Company -- Analyst

Will Power -- Robert W. Baird and Company -- Analyst

Pat Walravens -- JMP Securities -- Analyst

Ryan MacWilliams -- Barclays -- Analyst

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