SAN JOSE, Calif. - Zoom Video Communications , Inc. (NASDAQ: NASDAQ:ZM) and Mitel have announced a strategic partnership to provide enterprises with a hybrid cloud communications solution. This collaboration aims to meet the growing demand for flexible unified communications (UC) by integrating Zoom's advanced features with Mitel's established platform.
The partnership introduces a "Zoom-first" experience within Mitel's offerings, allowing access to Zoom Workplace and Zoom AI Companion without the need for additional plug-ins. The solution is designed to offer security and control for essential communications while enhancing collaboration to improve business productivity.
According to recent surveys, a significant percentage of leaders are planning to adopt more flexible working styles, and enterprises are increasingly prioritizing hybrid communication solutions. The Zoom-Mitel partnership responds to this trend by delivering a seamless user experience that includes UC, mobile app integration, and advanced business process capabilities.
The collaboration enables Mitel's sales teams and global partners to offer the Zoom-first experience as part of their hybrid solutions or assist customers transitioning to Zoom's UCaaS model. Additionally, Zoom's sales teams will be able to sell Mitel's devices to hybrid customers requiring physical endpoints.
Eric S. Yuan, founder and CEO of Zoom, emphasized the importance of meeting the evolving needs of users with AI-first, reliable, and seamless collaboration solutions. Tarun Loomba, president and CEO of Mitel, highlighted the partnership's potential to drive innovation and growth by delivering flexibility and choice to customers.
The joint solution is slated to become generally available in the first half of 2025, with advanced capabilities and enhancements planned as part of the multi-phase partnership.
Industry analysts recognize the value of this partnership in providing a robust hybrid communication solution that addresses the complex needs of modern businesses without imposing an integration burden on customers.
This article is based on a press release statement from Zoom Video Communications, Inc.
In other recent news, Zoom Video Communications reported notable developments. The company's Q2 2025 earnings and revenue exceeded expectations, with non-GAAP income from operations reaching $456 million and total revenue coming in at $1.16 billion. Analyst firms Citi, Deutsche Bank, and Goldman Sachs maintained a neutral rating on Zoom, adjusting their price targets in response to these results.
Zoom also announced the appointment of Mike Fenger, Apple (NASDAQ:AAPL)'s Vice President, to its Board of Directors and the Nominating and Corporate Governance Committee. Fenger's extensive experience in sales, operations, and marketing is expected to contribute to Zoom's strategic direction.
In addition, Zoom's AI Companion, part of the Zoom for Government platform, has been authorized by The Federal Risk and Authorization Management Program (FedRAMP) Joint Authorization Board (JAB) as a moderate system. This certification allows federal agencies, state and local governments, and certain private sector organizations to utilize a secure AI service within their paid Zoom accounts.
The company revised its full-year revenue outlook to between $4.63 billion and $4.64 billion, with non-GAAP earnings per share expected to be $5.29 to $5.32. These are among the recent developments at Zoom.
InvestingPro Insights
Zoom Video Communications (NASDAQ: ZM) has recently fortified its market position through a strategic partnership with Mitel, aimed at enhancing hybrid cloud communications. This collaboration is underpinned by Zoom's solid financial metrics and forward-looking analyst sentiment, as reflected in InvestingPro data and tips.
InvestingPro data shows that Zoom boasts a substantial market capitalization of $20.96 billion, illustrating the company's significant presence in the industry. The firm's Price-to-Earnings (P/E) ratio stands at 23.79, suggesting that investors are willing to pay a premium for Zoom's earnings compared to the broader market. This valuation is further bolstered by a strong gross profit margin of 75.89% for the last twelve months as of Q1 2023, indicating efficient management and a potentially sustainable competitive advantage.
Among the InvestingPro Tips, two particularly stand out. Firstly, Zoom holds more cash than debt on its balance sheet, providing financial flexibility and stability, which is crucial for investing in strategic partnerships such as the one with Mitel. Secondly, 28 analysts have revised their earnings expectations upwards for the upcoming period, signaling confidence in Zoom's growth trajectory and its ability to capitalize on the increasing demand for flexible unified communications solutions.
The strategic partnership with Mitel is poised to leverage Zoom's robust financial health and positive market sentiment. For readers interested in a deeper dive into Zoom's financials and market performance, InvestingPro offers additional tips, with a total of 11 tips available at InvestingPro Zoom, providing a comprehensive outlook on the company's investment potential.
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