Zoom Communications (ZM.US): Zoomtopia Preview: Expect Focus on Monetization of Product Breadth, and MSD+ Rev. Growth and Raised Op. Margin Outlook

Ahead of Zoom's Zoomtopia event next week, J.P. Morgan expects the discussion to focus on expansion opportunities across customer wallets offered by the combination of Phone, Contact Center and Virtual Agent, along with integration and monetization opportunities from partnerships with frontier LLM companies. The setup is increasingly focused on driving investor confidence that the breadth of the AI and communications portfolio can translate into more durable, albeit modestly expanding, revenue growth. On financials, the company is expected to outline a focus on reinvigorating growth over a multi-year horizon led by ramping monetization of the expanded portfolio and AI features. Prior Zoomtopia events saw management raise operating margin targets to set a higher floor while retaining flexibility for organic and inorganic investment. FY27 guidance implies 40%+ operating margins versus the 33%-36% guide given in 2024;