SAN JOSE, Calif. - Zoom Video Communications , Inc. (NASDAQ:ZM) has introduced its Zoom Phone service in India, starting with the Maharashtra Telecom Circle, it was announced today. This launch marks the first cloud private branch exchange (PBX) solution in India with native phone number support, licensed by the Department of Telecommunications (DoT).
The service, aimed at both multinational corporations with a domestic presence and local Indian companies, promises to simplify and modernize their communication systems. Zoom Phone's entry into the Indian market commenced in April 2023 when Zoom India received the Unified License from the DoT, which included Access All/PAN India and Long Distance licenses. Following this, the company set up dedicated domestic infrastructure to meet India's regulatory requirements.
Zoom Phone is designed to integrate with Zoom Workplace and features an intuitive interface. It offers inbound and outbound calling through the public switched telephone network (PSTN) and can serve as a replacement for traditional PBX systems. The service is available as an add-on for Zoom's existing paid customers.
The cloud PBX service is compliant with India's Unified Telecom license, which mandates the establishment of local interconnection infrastructure. Zoom's expansion into the Indian market aligns with the increasing demand for Unified Communications as a Service (UCaaS) solutions that integrate telephony into collaborative platforms.
Zoom's offering includes AI Companion capabilities that enhance call productivity, such as post-call summaries and voicemail prioritization. The service also integrates with various business applications, contact center partners, and hardware providers, aiming to provide a comprehensive communication solution.
The availability of Zoom Phone in India will follow in other major technology centers, including Karnataka (Bangalore), Tamil Nadu (Chennai), Andhra Pradesh (Hyderabad), Mumbai, and Delhi telecom circles. This expansion demonstrates Zoom's commitment to delivering cloud services globally while ensuring compliance and service excellence in every market.
Zoom Phone's launch in India is a strategic move by Zoom to cater to the needs of businesses transitioning to dynamic workstyles and seeking to unify their communication channels. This information is based on a press release statement from Zoom Video Communications, Inc.
In other recent news, Zoom Video Communications has undergone significant changes in its management and operations. The company recently appointed Michelle Chang, formerly of Microsoft (NASDAQ:MSFT), as its new Chief Financial Officer. Analyst firms BTIG, Stifel, Citi, Deutsche Bank (ETR:DBKGn), and Goldman Sachs (NYSE:GS) have maintained a neutral rating on Zoom. In the second quarter of 2025, Zoom's earnings and revenue surpassed expectations, with non-GAAP income from operations reaching $456 million and total revenue amounting to $1.16 billion. As a result, the full-year revenue outlook has been revised to between $4.63 billion and $4.64 billion, and non-GAAP earnings per share are projected to be $5.29 to $5.32. Zoom has also introduced new features and products aimed at improving compliance and security, including Zoom Compliance Manager Plus, Meeting Survivability, and Zoom Mesh for Meetings. In addition, Zoom formed a strategic partnership with Mitel to provide a hybrid cloud solution, integrating Zoom's advanced features with Mitel's platform. This collaboration is expected to be available in the first half of 2025. Lastly, Zoom's AI Companion, part of the Zoom for Government platform, received authorization from The Federal Risk and Authorization Management Program (FedRAMP) Joint Authorization Board (JAB) as a moderate system.
InvestingPro Insights
Zoom's expansion into the Indian market with its Zoom Phone service aligns well with the company's strong financial position and growth potential. According to InvestingPro data, Zoom boasts a market capitalization of $20.81 billion and has demonstrated impressive financial metrics that support its expansion strategy.
One of the key InvestingPro Tips highlights that Zoom "holds more cash than debt on its balance sheet." This strong liquidity position is crucial for funding international expansions like the one in India, allowing the company to invest in infrastructure and compliance measures without straining its finances.
Additionally, Zoom's gross profit margin stands at a remarkable 75.89% for the last twelve months as of Q2 2025, reflecting the company's ability to maintain high profitability as it scales its operations. This robust margin provides Zoom with the financial flexibility to enter new markets and potentially offer competitive pricing for its Zoom Phone service in India.
The company's focus on innovation and integration, as evidenced by the AI Companion capabilities mentioned in the article, is supported by another InvestingPro Tip stating that "28 analysts have revised their earnings upwards for the upcoming period." This positive sentiment from analysts suggests that Zoom's strategic moves, including the expansion into India, are viewed favorably by market experts.
For investors interested in a deeper analysis, InvestingPro offers 7 additional tips that could provide further insights into Zoom's financial health and market position.
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