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ZM · Zoom Communications

7 filings

10-K

ZM 10-K Annual Reports

Zoom Communications - 7 annual reports

Filing record · 2019–202610-K710-Q238-K67

2026
Zoom Communications Annual Report, Year Ended Jan 31, 2026
Zoom Communications, Inc. (Nasdaq: ZM) reported fiscal year 2026 (ended January 31, 2026) revenue of $4,868.8 million, up from $4,665.4 million in fiscal 2025, an increase of 4.4% as stated in the filing. Gross margin rose to 77.0% from 75.8%, income from operations reached $1,123.6 million versus $813.3 million, and net income was $1,900.1 million, compared with $1,010.2 million in the prior year. Net income was boosted by $969.8 million in gains on strategic investments, net, driven mainly by fair value changes in privately held securities. Net cash provided by operating activities was $1,989.0 million, and free cash flow (a non-GAAP measure defined by the company) was $1,924.1 million. The company reported a trailing 12-month net dollar expansion rate for Enterprise customers of 98%, down from 101% two years earlier, and attributed the softness to slower hiring and seat downsells from existing enterprise customers. Revenue from customers contributing more than $100,000 of trailing 12-month revenue rose to 32.8% of total revenue, with 4,468 such customers at year-end. The company repurchased 20,385,361 Class A shares for about $1.6 billion during the year and had $1.0 billion remaining under its repurchase authorization. Cash, cash equivalents and marketable securities totaled $7.8 billion as of January 31, 2026. The filing also highlights AI as a central strategic focus, including AI Companion 3.0 launched at no additional cost for paid Zoom Workplace users, and the acquisition of BrightHire, Inc. for $98.0 million in cash. Management disclosed a change in the amortization period for deferred contract acquisition costs from three years to five years, with an estimated reduction in sales and marketing expense of $90.0 million to $95.0 million for fiscal 2027. The company continues to disclose an ongoing EDNY and NDCA government investigation, and the SEC investigation concluded in July 2025 without an enforcement recommendation. The dual-class structure gives Class B holders 51.8% of voting power as of January 31, 2026.
Feb 27, 2026
2025
Zoom Communications Annual Report, Year Ended Jan 31, 2025
Zoom Communications, Inc. (Nasdaq: ZM) reported revenue of $4,665.4 million for the fiscal year ended January 31, 2025, up from $4,527.2 million in fiscal 2024 and $4,393.0 million in fiscal 2023, representing year-over-year growth of 3.1%. Net income rose to $1,010.2 million from $637.5 million, and income from operations increased to $813.3 million from $525.3 million. Gross margin declined slightly to 75.8% from 76.2%, mainly due to costs associated with AI functionality and investments to upgrade the data center backbone. Operating cash flow was $1,945.3 million and free cash flow (non-GAAP) was $1,808.7 million. The company positions itself as an AI-first work platform, with Zoom AI Companion and a federated approach that draws on multiple large language models. Revenue from Enterprise customers represented 59.0% of total revenue, while the trailing 12-month net dollar expansion rate for Enterprise customers fell to 98% from 101% a year earlier. Online monthly churn improved to 2.9% from 3.1%. Enterprise customer count was approximately 192,600 after about 26,800 lower-MRR customers were moved to the Online category, and the company will stop reporting that metric beginning in fiscal 2026. As of January 31, 2025, cash, cash equivalents and marketable securities totaled $7.8 billion. The company repurchased 15,888,316 Class A shares for about $1.1 billion during the year, with $1.6 billion of authorization remaining. Class B shares held 61.8% of voting power, and the filing discloses ongoing U.S. government investigations related to privacy and security matters, with an $18.0 million tentative SEC settlement accrued.
Feb 28, 2025
2024
Zoom Communications Annual Report, Year Ended Jan 31, 2024
Zoom Video Communications, Inc. reported revenue of $4,527.2 million for the fiscal year ended January 31, 2024, up from $4,393.0 million in fiscal 2023 and $4,099.9 million in fiscal 2022, with revenue growth of 3.1% year over year. Income from operations was $525.3 million, compared with $245.4 million in fiscal 2023, and net income was $637.5 million, compared with $103.7 million the prior year. Net cash provided by operating activities was $1,598.8 million, and free cash flow (a non-GAAP measure) was $1,471.9 million. Gross margin rose to 76.2% from 74.9%, while sales and marketing expense fell 9.2% to $1,541.3 million, partly reflecting lower stock-based compensation. Management cites macroeconomic headwinds, including high inflation, elevated interest rates, and uncertain corporate spending, which have lengthened enterprise sales cycles and reduced revenue growth and the trailing 12-month net dollar expansion rate for Enterprise customers, which fell to 101% from 115%. Online average monthly churn improved to 3.1% from 3.4%. Enterprise customers rose to approximately 220,400 and now account for 57.9% of revenue. A strengthening U.S. dollar reduced revenue by $34.1 million. The company completed a restructuring plan that reduced its workforce by approximately 15%, with $73.0 million in net restructuring costs recorded in fiscal 2024. At year end, the company held cash, cash equivalents, and marketable securities totaling $7.0 billion, and it authorized a new $1.5 billion Class A stock repurchase program in February 2024. The filing also discloses ongoing DOJ and SEC investigations related to privacy and security matters, securities and derivative litigation, and a dual-class structure in which Class B shares held by insiders carry 64.1% of the voting power.
Mar 4, 2024
2023
Zoom Communications Annual Report, Year Ended Jan 31, 2023
Zoom Video Communications, Inc. (now Zoom Communications, Inc.) reported revenue of $4,393.0 million for the fiscal year ended January 31, 2023, up from $4,099.9 million in fiscal 2022, a 7% increase. Net income fell to $103.7 million from $1,375.6 million, and income from operations was $245.4 million, compared with $1,063.6 million a year earlier. The filing attributes the revenue growth to a 23.6% increase in Enterprise subscription revenue, partly offset by a 7.7% decline in Online revenue. Operating expenses rose sharply, with sales and marketing up 49.4% and research and development up 113.2%, and stock-based compensation totaled $1,285.8 million. Management says revenue growth has declined as the COVID-19 pandemic tapered and expects it to continue to decline relative to prior periods. The company also cited a $69.1 million negative foreign currency impact on revenue from a stronger U.S. dollar. The balance sheet remained strong, with cash, cash equivalents, and marketable securities of $5.4 billion as of January 31, 2023. Operating cash flow was $1,290.3 million and free cash flow, a non-GAAP measure, was $1,186.4 million. The company repurchased $1.0 billion of Class A common stock during the year, completing a program authorized in February 2022. In February 2023, after year end, Zoom announced a restructuring plan to cut roughly 15% of its workforce, with estimated charges of $50 million to $68 million, to reduce operating costs and pursue profitable growth. Investors should also weigh the legal and regulatory exposure described in the filing, including ongoing U.S. Department of Justice and SEC subpoenas tied to privacy, security, and China-related matters, as well as securities class actions. The dual-class structure gives Class B holders 65.4% of voting power, and founder Eric S. Yuan's affiliates control approximately 31.6% of voting power while holding about 7.7% of outstanding capital stock.
Mar 3, 2023
2022
Zoom Communications Annual Report, Year Ended Jan 31, 2022
Zoom Video Communications, Inc. (now Zoom Communications, Inc.) reported fiscal year 2022 (ended January 31, 2022) revenue of $4.10 billion, up 55% from $2.65 billion in fiscal 2021, and net income of $1,375.6 million, which includes a non-recurring $328.0 million tax benefit from releasing the valuation allowance on U.S. federal and state deferred tax assets. Net cash provided by operating activities was $1,605.3 million, and free cash flow was $1,472.7 million. The company ended the year with cash, cash equivalents, and marketable securities of $5.4 billion and said it expects existing cash and operating cash flow to meet its needs for at least the next 12 months. The filing repeatedly warns that revenue growth has begun to decline and is expected to decline further, as the COVID-19 pandemic usage surge tapers. Much of the increased usage came from free Basic accounts that generate no revenue, and management expects user growth to slow or decline as vaccines become widely available. Trailing 12-month net dollar expansion for customers with more than 10 employees was 129% at January 31, 2022, and the company also disclosed 2,725 customers contributing more than $100,000 of trailing 12-month revenue. Legal and regulatory overhang remains significant. The company disclosed ongoing U.S. Department of Justice and SEC subpoenas concerning privacy, encryption, and China-related matters, a $85.0 million escrow payment and $66.9 million net settlement charge tied to a privacy class action, and a pending securities class action. A dual-class structure gives Class B holders 67.8% of voting power, and founder Eric S. Yuan controls approximately 29.8% of voting power with about 7.6% of capital stock. The company also authorized a $1.0 billion share repurchase program in February 2022.
Mar 7, 2022
2021
Zoom Communications Annual Report, Year Ended Jan 31, 2021
Zoom Video Communications, Inc. reported fiscal year 2021 (ended January 31, 2021) revenue of $2,651.4 million, up from $622.7 million in fiscal 2020, and net income of $672.3 million, compared with $25.3 million a year earlier. Revenue growth was driven by the surge in platform usage during the COVID-19 pandemic. Gross margin fell to 69% from 81%, as the company relied more on third-party cloud hosting and served a higher share of free Basic accounts, which generate no revenue. Operating expenses rose sharply, with sales and marketing up $344.3 million and general and administrative up $233.7 million, though income from operations grew to $659.8 million from $12.7 million. The filing cautions that the company expects user growth and revenue growth rates to slow or decline as the pandemic tapers, and that many new free hosts may never upgrade to paid plans. Customers with more than 10 employees reached approximately 467,100, up from 81,900. Cash, cash equivalents and marketable securities totaled $4.2 billion at year-end, and the company completed a follow-on offering in January 2021 that netted $1,980.0 million. The filing also details significant legal and regulatory exposure. Federal subpoenas from the EDNY, NDCA and the SEC relate to privacy, encryption and China-related matters, and multiple securities and privacy class actions are pending. The company settled with the FTC over its security representations without a fine. Its dual-class structure gives founder Eric S. Yuan approximately 30.1% of voting power on about 8.4% of outstanding capital stock.
Mar 18, 2021
2020
Zoom Communications Annual Report, Year Ended Jan 31, 2020
Zoom Video Communications, Inc. reported revenue of $622.7 million for the fiscal year ended January 31, 2020, up from $330.5 million the prior year, an increase of 88% as stated in the filing. Net income was $25.3 million, compared with $7.6 million in fiscal 2019, and the company generated net cash from operating activities of $151.9 million and free cash flow (non-GAAP) of $113.8 million. Income from operations was $12.7 million, and gross margin was 81%. The company's trailing 12-month net dollar expansion rate for customers with more than 10 employees was greater than 130% as of January 31, 2020 and 2019. Customers with more than 10 employees rose to approximately 81,900 from 50,800 a year earlier, and customers contributing more than $100,000 of trailing 12-month revenue increased to 641 from 344. Remaining performance obligations totaled $604.1 million, with 62% expected to be recognized over the next 12 months. Investors should note the dual-class structure: Class B shares carry 10 votes per share and held 92.6% of voting power as of January 31, 2020, with Eric S. Yuan and affiliates controlling approximately 27.5% of voting power. The company completed its IPO in April 2019 at $36.00 per share, with aggregate net proceeds of $447.9 million. The filing also discloses COVID-19 as a risk to data center capacity and demand, and records sales and other tax liabilities of $37.7 million.
Mar 20, 2020