Zoom Communications is leveraging its employee experience platform, Workvivo, to drive enterprise expansion. With a 142% year-over-year increase in customers contributing over $100,000 in Annual Recurring Revenue, Workvivo is expected to continue scaling adoption among large organizations, positioning it as a key player in the employee experience market.

The acquisition of Workvivo is set to enhance Zoom’s presence in employee engagement and internal communications, catering to the growing demand for integrated employee platforms in hybrid work environments. Large rollouts, like Marubeni Corp.’s deployment of over 10,000 licenses, highlight the shift towards prioritizing employee experience, positioning Workvivo to capture a larger share of enterprise technology budgets.

Zoom’s integration with Zoom Workplace is expected to drive cross-selling opportunities and increase customer lifetime value, especially as the company expands into mid-market accounts. With AI-driven enhancements, Zoom aims to differentiate itself in the competitive employee experience market, solidifying its position among large accounts and sustaining growth momentum.

Despite facing competition from Microsoft’s Viva suite and Alphabet’s Google Workspace, Zoom’s Workvivo stands out for its cross-selling potential through Workplace and its ability to offer unified platforms outside of existing ecosystems. Microsoft’s bundled pricing and enterprise ties, along with Alphabet’s AI-driven innovation, present challenges for Zoom, but Workvivo’s unique positioning could drive continued success in the market.

Zoom’s share price performance has been modest, with a 2.3% year-to-date increase, underperforming industry and sector benchmarks. The company’s valuation, with a forward 12-month Price/Sales ratio of 5.15X compared to the industry’s 5.62X, indicates room for growth. With a Zacks Value Score of D and an improved earnings estimate for the third quarter of fiscal 2026, Zoom is poised for continued success.

Zoom Communications currently holds a Zacks Rank #1 (Strong Buy), positioning it as a top stock to watch. As the company navigates the evolving landscape of employee experience platforms and competes with industry giants like Microsoft and Alphabet, Zoom’s strategic acquisitions and focus on innovation are key factors driving its growth trajectory.

Read more at Nasdaq: Zoom’s Enterprise Base Benefits From Workvivo Adoption: What’s Ahead?