Zoom is stabilizing, not reaccelerating yet
- Enterprise customers now make up 61.0% of revenue, so the company is leaning more on larger buyers.
- Enterprise net dollar expansion improved to 99%, but it is still below the 100% line that would mean net growth from existing customers.
- Zoom Phone, Contact Center, and AI Companion are the main bets to move Zoom beyond Meetings.
- Microsoft Teams and Google Meet remain the hardest problem because many companies already pay for those suites.
- The SEC matter is closed, but the DOJ investigation is still open and keeps a legal overhang on the stock.
A platform bet still needs proof
Zoom is trying to turn a famous video meeting app into a wider work platform. The bull case is simple: Zoom already has a known brand, an easy product, and a huge base of users. If paid customers adopt Zoom Phone, Contact Center, Docs, Workvivo, and AI Companion, Zoom can sell more tools to the same companies.
The latest filing gives the bulls one small win. Enterprise net dollar expansion rose to 99% from 98% a year earlier. This metric compares how much the same Enterprise customer group spends now versus before, after upgrades, cuts, and churn. It is still below 100%, so existing Enterprise customers are still shrinking slightly in total, but the direction improved.
The bear case has not gone away. Meetings face bundled rivals from Microsoft and Google. If a company already pays for Microsoft 365 or Google Workspace, Teams or Meet can look cheap enough, even if some users prefer Zoom.
Finn's view is balanced. Zoom has a stronger financial profile than many slow-growth software peers, but growth is only middling until Enterprise net dollar expansion gets back above 100% and newer products become clear growth engines.
Free users feed paid seats
Zoom makes money by selling subscriptions for its communications platform. The free plan brings people in, then Zoom tries to convert users or whole teams to paid plans with more capacity, controls, and features.
The sales motion has two lanes. Large organizations usually come through direct sales, resellers, or strategic partners. Smaller companies and individuals often buy online through self-service.
That mix matters. Enterprise customers made up 61.0% of revenue in the quarter ended April 30, 2026, while Online customers made up 39.0%. Enterprise is the more strategic base, but its net dollar expansion rate is still only 99%. Online monthly average churn also ticked up to 3.0% from 2.8% a year earlier.
AI Companion is important because Zoom includes it at no extra cost for paid accounts. That could help retention, but it also raises a question: if AI is free, Zoom must prove it helps keep and expand paid seats rather than just adding cost.
Meetings is the base, AI is the hook
Zoom Meetings
This is the original product most people know. It still anchors the brand, but it faces the most direct pressure from Microsoft Teams and Google Meet.
Zoom Workplace
Workplace bundles meetings, phone, chat, mail, calendar, docs, whiteboard, and clips. The goal is to make Zoom a daily work hub, not only a meeting link.
Zoom AI Companion
AI Companion is a generative AI assistant included with paid accounts at no extra cost. It can improve the value of paid plans, but Zoom has not shown exactly how much it drives conversion or retention.
Zoom Phone
Zoom Phone is the cloud phone system that helps Zoom sell beyond video meetings. Strong adoption here would support the platform story.
Zoom Contact Center
Contact Center targets customer support teams with omnichannel service tools. It is one of the clearest ways Zoom can enter a larger enterprise budget.
Employee Experience
This includes Workvivo, Zoom Rooms, and workspace reservation tools. These products give Zoom more ways to serve hybrid work, but their revenue mix is not broken out.
Developer Platform and App Marketplace
APIs, SDKs, and third-party apps help customers connect Zoom to other software. This can raise switching costs if companies build workflows around Zoom.
Enterprise now carries most sales
Segment shares are from the quarter ended April 30, 2026. Zoom also disclosed that the Americas made up 72.1% of revenue, with APAC and EMEA together at 27.9%.
What could break the thesis
Bundled rivals cap growth
High impact · High oddsMicrosoft Teams and Google Meet are often bundled into software suites companies already buy. That makes Zoom's core Meetings product easier to replace or negotiate down. If Zoom cannot prove its broader platform is worth a separate bill, growth can stay slow.
Enterprise customers spend less
High impact · Medium oddsZoom's land and expand model depends on customers buying more over time. The Enterprise net dollar expansion rate improved to 99%, but it still shows slight net contraction. A slip back toward 98% would suggest the recent stabilization was weak.
Online churn rises
Medium impact · Medium oddsOnline customers are smaller self-service buyers, and they made up 39.0% of revenue in the latest quarter. Their monthly average churn rose to 3.0% from 2.8% a year earlier. If that keeps rising, the free-to-paid funnel may lose value.
China and DOJ overhang
Medium impact · Medium oddsZoom has a significant research and development presence in China. That can worry security-sensitive customers and regulators. The SEC investigation has ended with no enforcement action recommended, and BIS closed its matter with a warning letter and no fine, but the DOJ investigations remain ongoing.
Security trust shock
High impact · Low oddsZoom carries sensitive business, school, health, and government conversations. A major breach or privacy failure could hurt the brand and push customers to bundled alternatives. Past scrutiny makes new incidents more costly to explain.
Third-party infrastructure outage
Medium impact · Low oddsZoom relies on co-located data centers and cloud services, including AWS and Oracle Cloud. If those services fail, Zoom's own service quality can suffer. For a communications product, downtime can quickly damage trust.
In one breath
Is Zoom still growing?
Zoom is growing more slowly than during the pandemic boom. The key Enterprise metric improved to 99%, but it remains below the 100% mark that would show net growth from existing Enterprise customers.
What does Enterprise net dollar expansion mean for Zoom?
It measures whether the same Enterprise customer base is spending more or less after upgrades, downgrades, and churn. Zoom's 99% rate means that base is still shrinking slightly, though less than before.
Why is Microsoft Teams such a big threat to Zoom?
Many companies already pay for Microsoft 365, so Teams can feel like a low-cost add-on. Zoom must show that its ease of use, AI tools, phone, and contact center products are worth paying for separately.
What would make the Zoom thesis more positive?
The clearest sign would be Enterprise net dollar expansion moving back to 100% or higher. More detail showing strong adoption of Zoom Phone and Contact Center would also help.