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ZM · Zoom Communications

23 filings

10-Q

ZM 10-Q Quarterly Reports

Zoom Communications - 23 quarterly reports

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

2027-Q2
Zoom Communications Quarterly Report for Q2 Ended Jul 31, 2026
Zoom Communications, Inc. reported revenue of $1,277.2 million for the three months ended July 31, 2026, up 4.9% from $1,217.2 million a year earlier, and $2,516.2 million for the six months, up 5.2% from $2,391.9 million. Income from operations was $314.3 million for the quarter, versus $321.7 million in the prior-year quarter. Net income was $1,542.4 million for the quarter, compared with $358.6 million, and was driven mainly by a $1,614.2 million gain on strategic investments, net, which includes a $1,612.7 million increase in the fair value of the company's Anthropic investment. Diluted net income per share was $5.15 for the quarter and $6.56 for the six months. Operating results were steadier than the headline net income suggests. Gross margin was 77.2% in the quarter versus 77.6% a year earlier, as third-party hosting costs rose $24.4 million on higher platform usage, including AI-related consumption. Research and development expense grew 17.5% for the quarter on AI investment, while sales and marketing expense fell 2.5%, helped by a change in the amortization period for deferred contract acquisition costs from three years to five years. Net cash provided by operating activities was $1,016.4 million for the six months, and free cash flow was $972.9 million. The company repurchased 3,740,213 Class A shares for $351.9 million in the quarter, and $1.3 billion of its repurchase authorization remained available at July 31, 2026. The filing also highlights the company's balance sheet and open legal matters. Cash, cash equivalents, and marketable securities totaled $7.2 billion, and strategic investments reached $3,785.9 million, of which $3,134.5 million is the Anthropic preferred stock. The company acquired Common Room, Inc. in July 2026 for $266.8 million and made a $300.9 million additional investment in Anthropic during the six months. The EDNY investigation remains ongoing, and the company cannot estimate a range of possible loss. The Northern District of California has concluded its investigation without further action.
Aug 26, 2026
2027-Q1
Zoom Communications Quarterly Report for Q1 Ended Apr 30, 2026
Zoom Communications, Inc. reported revenue of $1,239.0 million for the three months ended April 30, 2026, up from $1,174.7 million in the prior-year period, an increase of 5.5%. Income from operations rose to $310.5 million from $241.6 million, and net income was $425.7 million compared with $254.6 million. Results were helped by gains on strategic investments, net, of $152.3 million, compared with a loss of $13.6 million a year earlier, and the filing attributes the gains mainly to privately held securities other than Anthropic. Diluted net income per share was $1.42 versus $0.81. Net cash provided by operating activities was $521.6 million, and free cash flow, a non-GAAP measure defined in the filing, was $500.5 million. The balance sheet remained strong, with cash and cash equivalents of $890.9 million and marketable securities of $6,830.0 million, for total liquidity of $7.7 billion as stated in the filing. Strategic investments grew to $1,876.4 million, including a $46.0 million additional investment in Anthropic preferred stock that brought that holding to $1,266.9 million. The company repurchased 4,169,208 Class A shares for $361.7 million during the quarter, and in May 2026 its Board authorized an additional $1.0 billion of repurchases, with $625.0 million remaining under the existing authorization as of April 30, 2026. Management cites macroeconomic uncertainty, including the conflict involving Iran and energy price volatility, as contributing to variability in sales cycles and continued caution in enterprise spending. Trailing 12-month net dollar expansion for Enterprise customers was 99%, compared with 98% a year earlier, and online average monthly churn was 3.0%, compared with 2.8%. The company also disclosed ongoing EDNY and NDCA government investigations, for which it states it cannot reasonably estimate a range of possible loss.
May 22, 2026
2026-Q3
Zoom Communications Quarterly Report for Q3 Ended Oct 31, 2025
Zoom Communications, Inc. reported revenue of $1,229.8 million for the three months ended October 31, 2025, up 4.4% from $1,177.5 million a year earlier, and $3,621.8 million for the nine months, up 4.0%. Income from operations was $310.4 million for the quarter versus $182.8 million in the prior-year quarter, and net income was $612.9 million, boosted by $406.1 million in gains on strategic investments, net. Nine-month net income was $1,226.1 million compared with $642.4 million. Management attributes the revenue growth to 6.1% growth in Enterprise revenue in the quarter and a 2.0% increase in Online revenue, while noting that macroeconomic uncertainty has led to longer sales cycles and caution in enterprise spending. The company's trailing 12-month net dollar expansion rate for Enterprise customers was 98% as of October 31, 2025 and 2024. Cash flow and capital return remained central. Net cash provided by operating activities was $1,634.5 million for the nine months, and free cash flow, a non-GAAP measure, was $1,585.6 million. The company repurchased 16,624,306 Class A shares during the nine months for $1,295.8 million, and as of October 31, 2025, $310.4 million remained under the repurchase authorization. In November 2025, the Board authorized an additional $1.0 billion repurchase program. Liquidity totaled $7.9 billion in cash, cash equivalents, and marketable securities, and management believes this is sufficient for at least the next 12 months. The filing also notes a subsequent event: an agreement to acquire BrightHire, Inc., an AI-powered interview intelligence and hiring automation company, expected to close in the fourth fiscal quarter with consideration paid in cash. Ongoing EDNY and NDCA government investigations remain unresolved, with the company unable to estimate a range of possible loss, while the SEC investigation was concluded on July 30, 2025 without an enforcement recommendation.
Nov 25, 2025
2026-Q2
Zoom Communications Quarterly Report for Q2 Ended Jul 31, 2025
Zoom Communications, Inc. reported revenue of $1,217.2 million for the three months ended July 31, 2025, up 4.7% from $1,162.5 million a year earlier, and net income of $358.6 million versus $219.0 million. For the six months ended July 31, 2025, revenue was $2,391.9 million (up 3.8%) and net income was $613.2 million versus $435.3 million. Income from operations rose to $321.7 million for the quarter from $202.4 million, and gross margin expanded to 77.6% from 75.5%. The filing attributes the margin gain mainly to lower stock-based compensation and hosting costs, and the operating expense decline mainly to lower stock-based compensation and a $18.0 million reversal of an accrual related to an SEC investigation, which the SEC concluded on July 30, 2025 without recommending enforcement. Cash flow remained steady, with net cash provided by operating activities of $1,005.2 million for the six months versus $1,037.5 million a year earlier, and free cash flow (a non-GAAP measure) of $971.3 million. The company repurchased 11,512,818 Class A shares for about $881.4 million during the six months, leaving $724.7 million of authorization available at July 31, 2025. Cash, cash equivalents and marketable securities totaled $7.8 billion. Enterprise customers generated 60.0% of revenue, and the trailing 12-month net dollar expansion rate for Enterprise customers was 98%, below one hundred percent. The filing also reports ongoing DOJ investigations by the EDNY and NDCA, which the company says could result in substantial fines, and it notes a subsequent event: an unrealized gain of approximately $400.0 million on a private strategic investment recognized after July 31, 2025.
Aug 22, 2025
2026-Q1
Zoom Communications Quarterly Report for Q1 Ended Apr 30, 2025
Zoom Communications, Inc. (ZM) reported revenue of $1,174.7 million for the three months ended April 30, 2025, up 2.9% from $1,141.2 million a year earlier, and net income of $254.6 million compared with $216.3 million. Income from operations was $241.6 million versus $203.0 million, and diluted net income per share was $0.81 versus $0.69. The filing states that Enterprise customers generated 60.0% of revenue, Online customers 40.0%, and that the trailing 12-month net dollar expansion rate for Enterprise customers was 98%, down from 99% a year earlier. Cash flow from operations was $489.3 million compared with $588.2 million, which the filing attributes primarily to first-quarter estimated tax payments that fell in this period rather than the prior-year quarter. Free cash flow, a non-GAAP measure defined in the filing, was $463.4 million. The company repurchased and retired 5,561,920 Class A shares for $418.0 million during the quarter, and $1.2 billion of its repurchase authorization remained available. Cash, cash equivalents and marketable securities totaled $7.8 billion as of April 30, 2025. The filing describes ongoing DOJ and SEC investigations related to data privacy and security matters, with an $18.0 million tentative SEC settlement subject to SEC approval, and a $150.0 million securities class action settlement still awaiting final court approval. Management states it cannot reasonably estimate a range of possible loss beyond the $18.0 million SEC settlement offer.
May 23, 2025
2025-Q3
Zoom Communications Quarterly Report for Q3 Ended Oct 31, 2024
Zoom Video Communications, Inc. (renamed Zoom Communications, Inc. on November 25, 2024) reported revenue of $1,177.5 million for the three months ended October 31, 2024, up from $1,136.7 million a year earlier, a 3.6% increase. Net income was $207.1 million, compared with $141.2 million, and diluted earnings per share were $0.66 versus $0.45. For the nine months, revenue was $3,481.3 million (up 3.0%) and net income was $642.4 million, versus $338.6 million. Income from operations rose to $588.2 million for the nine months from $356.7 million, while sales and marketing and general and administrative expenses fell year over year, partly due to the prior-year restructuring plan. Gross margin declined to 75.8% for the nine months from 76.3%, which management attributed to increased use of AI functionality and investments to upgrade the data center backbone. Growth indicators were mixed. The trailing 12-month net dollar expansion rate for Enterprise customers fell to 98% from 105%, and management cited elongated sales cycles and reduced corporate spending. Enterprise customers totaled approximately 192,400 versus 219,700, though the filing notes about 26,800 lower-MRR customers were transferred to Online customers during the quarter ended April 30, 2024. Customers contributing more than $100,000 of trailing 12-month revenue rose to 3,995 from 3,731. Cash generation and capital returns were significant. Net cash provided by operating activities was $1,520.7 million for the nine months, and free cash flow, a non-GAAP measure, was $1,392.5 million. Cash, cash equivalents, and marketable securities totaled $7.7 billion as of October 31, 2024. The company repurchased $739.3 million of Class A stock during the nine months, and in November 2024 its board authorized an additional $1.2 billion, bringing remaining authorization to approximately $2.0 billion as of November 26, 2024. Legal matters include a $18.0 million accrual for a tentative settlement offer in the SEC investigation, subject to SEC approval, and the securities class action settlement previously agreed at $150.0 million.
Nov 26, 2024
2025-Q2
Zoom Communications Quarterly Report for Q2 Ended Jul 31, 2024
Zoom Video Communications, Inc. reported revenue of $1,162.5 million for the three months ended July 31, 2024, up 2.1% from $1,138.7 million a year earlier, and net income of $219.0 million versus $182.0 million. For the six months ended July 31, 2024, revenue was $2,303.8 million (up 2.7%) and net income was $435.3 million versus $197.4 million. Net cash provided by operating activities was $1,037.5 million for the six months, compared with $754.5 million in the prior-year period, and free cash flow (a non-GAAP measure defined in the filing) was $934.8 million versus $686.0 million. The filing attributes growth to Enterprise customers, which grew 3.5% in the quarter, while Online customer revenue was flat year over year. Management cited a 2.9% monthly average churn for Online customers in the quarter, and a trailing 12-month net dollar expansion rate for Enterprise customers of 98%, down from 109% a year earlier. Enterprise customers fell to approximately 191,600 from 218,100, after roughly 26,800 lower-MRR customers were moved to the Online category during the quarter. Gross margin declined to 75.5% from 76.6%, which the company attributed mainly to costs of increased AI functionality use and data center backbone upgrades. Management also described elongated sales cycles and reduced corporate spending and IT scrutiny from customers. Capital allocation included $437.7 million of Class A stock repurchases in the six months, with $1,062.3 million remaining under a $1.5 billion authorization. Cash, cash equivalents and marketable securities totaled $7.5 billion. The filing also discloses ongoing DOJ and SEC investigations related to security and privacy matters, and a securities class action settlement of $150.0 million, of which net payments of $60.0 million were made in fiscal 2024.
Aug 23, 2024
2025-Q1
Zoom Communications Quarterly Report for Q1 Ended Apr 30, 2024
Zoom Video Communications, Inc. reported revenue of $1,141.2 million for the three months ended April 30, 2024, up from $1,105.4 million a year earlier, representing period-over-period growth of 3.2%. Net income was $216.3 million compared with $15.4 million in the prior-year quarter, and income from operations was $203.0 million versus $9.7 million. The improvement was supported by lower operating expenses, including sales and marketing expense of $348.0 million (down from $422.5 million) and general and administrative expense of $111.3 million (down from $199.9 million), with the filing attributing the G&A decline largely to a $50.0 million decrease in legal expenses, including litigation settlements, and the prior-year restructuring plan. Cash generation remained strong. Net cash provided by operating activities was $588.2 million, and free cash flow, a non-GAAP measure defined by the company, was $569.7 million. As of April 30, 2024, cash, cash equivalents, and marketable securities totaled $7.4 billion. During the quarter the company repurchased 2,400,305 Class A shares for $150.0 million, leaving $1,350.0 million available under the $1.5 billion repurchase authorization. The filing also highlights operating pressures. Trailing 12-month net dollar expansion for Enterprise customers was 99% as of April 30, 2024, down from 112% a year earlier, and Enterprise customers fell to approximately 191,000 from 215,900, partly reflecting the transition of about 26,800 lower-MRR customers to Online status. Management cites elongated sales cycles and lower customer corporate spending, and the company says it is investigating matters with the DOJ and SEC that could lead to substantial fines.
May 22, 2024
2024-Q3
Zoom Communications Quarterly Report for Q3 Ended Oct 31, 2023
Zoom Video Communications, Inc. reported its quarterly results for the three and nine months ended October 31, 2023. Revenue for the three months was $1,136.7 million, up 3.2% from $1,101.9 million a year earlier, and net income was $141.2 million versus $48.4 million. For the nine months, revenue was $3,380.8 million (up 3.2% from $3,275.2 million) and net income was $338.6 million versus $207.8 million. Net cash provided by operating activities was $1,247.6 million for the nine months, and free cash flow (a non-GAAP measure defined in the filing) was $1,139.2 million. The company cites macroeconomic pressure, including elongated sales cycles and lower customer corporate spending, along with an unfavorable foreign currency impact of $3.9 million on quarterly revenue and $32.6 million on nine-month revenue. The Enterprise trailing 12-month net dollar expansion rate was 105% as of October 31, 2023, down from 117% a year earlier, and Enterprise customers reached approximately 219,700. The company completed a restructuring plan that reduced its workforce by approximately 15%, recording $73.0 million of restructuring costs for the nine months. The filing also details ongoing legal exposure: a $150.0 million securities class action settlement (of which $60.0 million net was paid in the quarter ended July 31, 2023), and continuing DOJ and SEC investigations that the company says could result in substantial fines or penalties. Cash, cash equivalents, and marketable securities totaled $6.5 billion, and the company believes these resources are sufficient for at least the next 12 months.
Nov 21, 2023
2024-Q2
Zoom Communications Quarterly Report for Q2 Ended Jul 31, 2023
Zoom Video Communications, Inc. (now Zoom Communications, Inc.) reported revenue of $1,138.7 million for the three months ended July 31, 2023, up 3.6% from $1,099.5 million a year earlier, and net income of $182.0 million versus $45.8 million. For the six months, revenue was $2,244.0 million (up 3.3%) and net income was $197.4 million versus $159.4 million. Income from operations for the quarter rose to $177.6 million from $121.7 million, and gross margin improved to 76.6% from 75.1%. Operating cash flow for the six months declined to $754.5 million from $783.4 million, and free cash flow was $686.0 million versus $730.5 million. Cash, cash equivalents, and marketable securities totaled $6.0 billion. Growth indicators were mixed. Enterprise customers reached approximately 218,100 versus 204,100, and customers contributing more than $100,000 of trailing 12-month revenue rose to 3,672 from 3,116. However, the trailing 12-month net dollar expansion rate for Enterprise customers fell to 109% from 120%, and the company cited elongated sales cycles, reduced corporate spending, and a $10.2 million quarterly revenue headwind from a stronger U.S. dollar. Online revenue declined 4.3% in the quarter. The company completed a February 2023 restructuring that reduced its workforce by approximately 15%, recording $73.0 million of restructuring costs for the six months. Legal and regulatory matters were significant. The company agreed to a $150.0 million settlement of a securities class action, with $60.0 million in net payments made in the quarter. The Department of Justice and SEC investigations into data privacy, security, and China-related matters remain ongoing, and the company stated it cannot predict their outcome. The company also acquired Workvivo for $221.8 million in April 2023 and made no share repurchases in the six months ended July 31, 2023.
Aug 23, 2023
2024-Q1
Zoom Communications Quarterly Report for Q1 Ended Apr 30, 2023
Zoom Video Communications, Inc. reported revenue of $1,105.4 million for the three months ended April 30, 2023, up from $1,073.8 million a year earlier, a period-over-period growth of 2.9%. Net income fell to $15.4 million from $113.7 million, and income from operations dropped to $9.7 million from $187.1 million. The decline was driven by higher operating expenses, including a $52.5 million additional estimated legal settlement charge recorded in general and administrative expense, $73.2 million of restructuring expenses tied to the February 2023 plan to reduce the workforce by approximately 15%, and higher research and development and sales and marketing costs. Gross margin improved to 76.1% from 75.6%. Cash generation remained strong but softened. Net cash provided by operating activities was $418.5 million compared with $526.2 million a year earlier, and free cash flow was $396.7 million versus $501.1 million. As of April 30, 2023, cash, cash equivalents, and marketable securities totaled $5.6 billion. During the quarter the company completed two acquisitions, Solvvy, Inc. and Workvivo Limited, which together involved all-cash consideration of $199.4 million net of cash acquired in investing activities. Management stated that the company expects existing cash, cash equivalents, marketable securities, and operating cash flow to be sufficient to meet needs for at least the next 12 months. The filing also highlights ongoing risks. The company is cooperating with Department of Justice and SEC investigations relating to security, privacy, and China-related matters, and it recorded a $52.5 million additional charge for a securities class action that it is discussing settling. Remaining performance obligations were $3,482.2 million, with 59% expected to be recognized over the next 12 months. Enterprise customers grew to approximately 215,900 from 198,900, while the trailing 12-month net dollar expansion rate for Enterprise customers declined to 112% from 123%.
May 25, 2023
2023-Q3
Zoom Communications Quarterly Report for Q3 Ended Oct 31, 2022
Zoom Video Communications, Inc. filed this Quarterly Report on Form 10-Q for the quarter ended October 31, 2022. Total revenue was $1,101.9 million for the three months ended October 31, 2022, up from $1,050.8 million a year earlier, and $3,275.2 million for the nine months, up from $3,028.5 million. Net income fell sharply to $48.4 million for the quarter from $340.4 million, and to $207.8 million for the nine months from $885.0 million. The filing attributes the decline in profitability to higher operating expenses, particularly research and development and sales and marketing, which rose largely on personnel costs and stock-based compensation. Income from operations was $66.5 million for the quarter versus $290.9 million a year earlier. Gross margin improved to 75.4% for the quarter from 74.2%. The company reported that its revenue growth rate has declined and that it expects growth to generally decline in future periods, citing COVID-19 tapering, competition and market maturation. Enterprise customers reached approximately 209,300, and the trailing 12-month net dollar expansion rate for Enterprise customers was 117%, down from 139%. Online customers' monthly average churn was 3.1% for the quarter, compared with 3.7% a year earlier. Remaining performance obligations totaled $3,245.9 million, with 59% expected to be recognized as revenue over the next 12 months. Liquidity remained substantial, with cash, cash equivalents and marketable securities of $5.2 billion as of October 31, 2022. The company repurchased 11,044,500 Class A shares for $990.8 million during the nine months, leaving $9.2 million of its $1.0 billion authorization. Operating cash flow was $1,078.7 million for the nine months, down from $1,395.9 million, and free cash flow (a non-GAAP measure) was $1,003.1 million. The filing also discloses ongoing U.S. Department of Justice and SEC investigations, along with pending privacy-related securities and consumer class actions, for which the company cannot estimate a loss.
Nov 23, 2022
2023-Q2
Zoom Communications Quarterly Report for Q2 Ended Jul 31, 2022
Zoom Video Communications, Inc. reported revenue of $1,099.5 million for the three months ended July 31, 2022, up 7.6% from $1,021.5 million a year earlier, and $2,173.3 million for the six months, up 9.9%. Net income fell sharply to $45.8 million for the quarter from $317.1 million, and to $159.4 million for the six months from $544.6 million. The decline was driven by higher operating expenses, most notably research and development (up 109.6% for the quarter) and sales and marketing (up 47.7%), largely from personnel costs and stock-based compensation, plus $34.7 million of losses on strategic investments and a $44.6 million tax provision. Gross margin improved to 75.1% for the quarter from 74.4%, and income from operations was $121.7 million versus $294.6 million a year earlier. The balance sheet remained strong, with cash, cash equivalents, and marketable securities of $5.5 billion as of July 31, 2022. Operating cash flow was $783.4 million for the six months, down from $1,001.3 million, and free cash flow was $730.5 million. The company repurchased $425.9 million of Class A stock in the six months, with $574.1 million of the authorization remaining. Remaining performance obligations totaled $3,213.0 million, with 61% expected to be recognized over the next 12 months. Management stated that revenue growth is slowing, and it expects the revenue growth rate to generally decline in future periods as COVID-19 usage tapers. The filing also discloses ongoing government investigations by the DOJ and SEC, securities class actions, and privacy-related class actions, for which the company cannot estimate potential losses. The dual-class structure gives Class B holders 65.0% of voting power.
Aug 24, 2022
2023-Q1
Zoom Communications Quarterly Report for Q1 Ended Apr 30, 2022
Zoom Video Communications, Inc. (now Zoom Communications, Inc.) reported revenue of $1,073.8 million for the three months ended April 30, 2022, up 12% from $956.2 million a year earlier, with the filing attributing the increase predominantly to subscription services provided to new customers. Gross margin rose to 76% from 72%, and income from operations was $187.1 million compared with $226.3 million. Net income fell to $113.7 million from $227.5 million, and diluted earnings per share were $0.37 versus $0.74. The filing attributes the cost increases mainly to higher research and development expense (up 121%) and sales and marketing expense (up 48%), largely driven by personnel and stock-based compensation, along with $36.4 million in losses on strategic investments and a $30.0 million income tax provision. Cash generation and liquidity remained strong. Net cash provided by operating activities was $526.2 million, free cash flow was $501.1 million, and cash, cash equivalents, and marketable securities totaled $5.7 billion as of April 30, 2022. The company repurchased 1,224,250 Class A shares for $132.4 million during the quarter and had $867.6 million remaining under its $1.0 billion authorization. Remaining performance obligations were $2,990.0 million, with 63% expected to be recognized as revenue over the next 12 months. Management states that the company expects growth in its revenue rate to generally decline in future periods, and the filing identifies ongoing U.S. Department of Justice and SEC investigations, plus securities litigation, as sources of potential financial exposure. The filing also highlights a dual-class structure in which Class B holders held 64.9% of voting power, and Eric S. Yuan and affiliates controlled 31.3% of voting power while holding about 7.5% of outstanding capital stock. Subsequent to quarter-end, the company acquired a conversational AI company for cash to expand its contact center platform.
May 25, 2022
2022-Q3
Zoom Communications Quarterly Report for Q3 Ended Oct 31, 2021
Zoom Video Communications, Inc. reported strong results for the three and nine months ended October 31, 2021. Revenue was $1,050.8 million for the quarter, up 35% from $777.2 million, and $3,028.5 million for the nine months, up 71% from $1,768.9 million. Net income was $340.4 million for the quarter and $885.0 million for the nine months, compared with $198.6 million and $411.7 million a year earlier. Gross margin rose to 74% for both periods, and the filing attributes the improvement to data center efficiencies and lower third-party cloud hosting rates. Gains on strategic investments, net, contributed $122.4 million in the quarter and $154.5 million for the nine months. The balance sheet remained strong, with cash and cash equivalents of $1,322.4 million and marketable securities of $4,095.5 million as of October 31, 2021, which management described as $5.4 billion of principal liquidity. Operating cash flow was $1,395.9 million for the nine months, and free cash flow, a non-GAAP measure, was $1,284.1 million. Deferred revenue rose to $1,161.4 million current and $24.7 million noncurrent, and remaining performance obligations totaled $2,456.5 million, with 67% expected to be recognized over the next 12 months. The filing also highlights material legal and regulatory exposure. The U.S. privacy class action settlement of $85.0 million was paid into escrow, with a $66.9 million net legal charge recorded in general and administrative expense for the nine months. Grand jury and SEC-related subpoenas from the Department of Justice and SEC remain ongoing, and the company stated that a negative outcome could cause material fines or penalties. Management also expects revenue growth to decline over time as COVID-19 usage tapers, and the dual-class structure gives Class B holders 69.8% of the voting power.
Nov 23, 2021
2022-Q2
Zoom Communications Quarterly Report for Q2 Ended Jul 31, 2021
Zoom Video Communications, Inc. reported its quarterly results for the three and six months ended July 31, 2021 in this Form 10-Q. Revenue for the three months was $1,021.5 million, up 54% from $663.5 million a year earlier, and net income was $317.1 million versus $186.0 million. For the six months, revenue was $1,977.7 million (up 99% from $991.7 million) and net income was $544.6 million versus $213.1 million. Gross margin rose to 74% for the quarter from 71%, and net cash provided by operating activities for the six months was $1,001.3 million, with free cash flow of $909.3 million (non-GAAP). The company's balance sheet grew substantially, with cash and cash equivalents of $1,931.4 million and marketable securities of $3,174.0 million as of July 31, 2021, which management says will be sufficient for at least the next 12 months. Customers with more than 10 employees rose to approximately 504,900 from 370,200, and customers contributing more than $100,000 of trailing 12-month revenue reached 2,278 from 988. Management expects revenue growth to generally decline in future periods and expects operating expenses to rise as it invests in sales, marketing, and research and development. The filing also discloses a pending all-stock acquisition of Five9, Inc. under a July 16, 2021 merger agreement, with each Five9 share converting into 0.5533 shares of Zoom Class A common stock, expected to close in the first half of calendar 2022. Zoom also disclosed an $85.0 million class settlement of privacy-related U.S. class actions, subject to court approval, along with ongoing U.S. Department of Justice and SEC investigations, with the outcome of those investigations not predictable.
Aug 31, 2021
2022-Q1
Zoom Communications Quarterly Report for Q1 Ended Apr 30, 2021
Zoom Video Communications, Inc. reported revenue of $956.2 million for the three months ended April 30, 2021, up from $328.2 million in the prior-year period, a 191% increase. Income from operations was $226.3 million versus $23.4 million, and net income was $227.5 million versus $27.1 million. Gross margin was 72% compared with 68% a year earlier. Net cash provided by operating activities was $533.3 million, and free cash flow (a non-GAAP measure) was $454.2 million. As of April 30, 2021, cash, cash equivalents, and marketable securities totaled $4.7 billion. The company states that the increase in usage during the COVID-19 pandemic was largely attributable to free Basic accounts, which generate no revenue, and it expects user growth and revenue growth rates to slow or decline as the pandemic tapers. The filing also highlights several legal and regulatory matters. Zoom recorded a $66.9 million aggregate legal settlement charge, net of amounts estimated to be covered by insurance, in general and administrative expense related to U.S. privacy class actions. The company is cooperating with ongoing Department of Justice and SEC subpoenas and investigations, and it reached a settlement with the FTC regarding its security representations, under which no fine or penalty was imposed. The company states it cannot predict the outcome of the government investigations, which could result in material fines or other financial exposure. Customers with more than 10 employees rose to approximately 497,000 from 265,400, and customers contributing more than $100,000 of trailing 12-month revenue rose to 1,999 from 769. The company's Class B common stock held 71.0% of voting power as of April 30, 2021, and the founder and CEO, Eric S. Yuan, controlled approximately 29.8% of voting power while holding about 8.3% of outstanding capital stock. Management stated that existing cash and cash equivalents, marketable securities, and operating cash flow will be sufficient to meet needs for at least the next 12 months.
Jun 2, 2021
2021-Q3
Zoom Communications Quarterly Report for Q3 Ended Oct 31, 2020
Zoom Video Communications, Inc. reported a sharp increase in results for the quarter ended October 31, 2020. Revenue was $777.2 million for the three months, up from $166.6 million, a 367% increase, and $1,768.9 million for the nine months, up from $434.4 million, a 307% increase. Net income was $198.6 million for the quarter and $411.7 million for the nine months, compared with $2.2 million and $10.0 million a year earlier. The filing attributes the growth to increased usage during the COVID-19 pandemic, with subscription revenue from new customers accounting for approximately 81% of the quarterly increase. Gross margin declined to 67% for the quarter from 81%, reflecting higher third-party cloud hosting costs and a higher share of usage from free Basic accounts, which generate no revenue. The balance sheet strengthened considerably. Cash and cash equivalents were $730.5 million and marketable securities were $1,141.4 million at October 31, 2020, versus $283.1 million and $572.1 million at January 31, 2020. Net cash provided by operating activities was $1,071.8 million for the nine months, and free cash flow, a non-GAAP measure defined in the filing, was $1,013.3 million. Customers with more than 10 employees rose to approximately 433,700 from 74,100, and customers contributing more than $100,000 of trailing 12-month revenue rose to 1,289 from 546. The company states it expects revenue growth to generally decline over time and that user growth may slow once the pandemic tapers. The filing also discloses several legal and regulatory matters. Putative privacy class actions, securities class actions and shareholder derivative suits are pending, and the company states it believes they are without merit and cannot estimate the reasonably possible loss. A proposed settlement with the Federal Trade Commission, which would impose no fine or penalty but would require injunctive provisions and an information security program, was published for public comment with a period ending December 13, 2020. The company states that it does not expect the settlement, once final, to have a material impact on its financial results.
Dec 4, 2020
2021-Q2
Zoom Communications Quarterly Report for Q2 Ended Jul 31, 2020
Zoom Video Communications, Inc. reported a sharp increase in results for the quarter ended July 31, 2020. Revenue was $663.5 million for the three months, up from $145.8 million, representing a period-over-period growth rate of 355%. Net income was $186.0 million versus $5.5 million a year earlier, and for the six months net income was $213.1 million on revenue of $991.7 million (up 270% from $267.8 million). The filing attributes the surge to increased platform usage during the COVID-19 pandemic, with a notable share of that usage coming from free Basic accounts, which generate no revenue. Gross margin fell to 71% for the quarter from 81%, reflecting higher third-party cloud hosting costs. Cash generation was strong: net cash provided by operating activities was $660.3 million for the six months, and free cash flow (a non-GAAP measure) was $625.1 million. Cash, cash equivalents and marketable securities totaled $1.5 billion at July 31, 2020. Deferred revenue rose to $714.5 million current and $28.1 million noncurrent. Remaining performance obligations were $1,415.8 million, with 72% expected to be recognized over the next 12 months. The company also acquired Keybase for $42.9 million in cash in May 2020. The filing flags material risks, including pending consolidated U.S. privacy class actions, securities class actions tied to data privacy and security statements, and shareholder derivative suits. Management states it cannot estimate the reasonably possible loss from these actions. Management also expects revenue growth to decline over time and notes that many new users from the pandemic may not upgrade or renew once usage normalizes.
Sep 3, 2020
2021-Q1
Zoom Communications Quarterly Report for Q1 Ended Apr 30, 2020
Zoom Video Communications, Inc. reported results for the quarter ended April 30, 2020 (first quarter of fiscal year 2021). Revenue was $328.2 million, up 169% from $122.0 million in the prior-year period. Income from operations was $23.4 million versus $1.6 million, and net income was $27.1 million versus $2.2 million. Net cash provided by operating activities was $259.0 million, and free cash flow (a non-GAAP measure) was $251.7 million. Cash, cash equivalents, and marketable securities totaled $1.1 billion. Gross margin fell to 68% from 80%, which the company attributes to higher third-party cloud hosting costs and a greater share of usage from free Basic accounts, which generate no revenue. The company said that COVID-19 drove a surge in usage, and that customers with more than 10 employees rose to approximately 265,400 from 58,500. The company is also carrying several forward-looking and risk items. It disclosed a one-time $9.8 million payment to MPEG LA for past use of licensed technology, plus a further $9.8 million royalty through December 31, 2020. It also disclosed putative privacy class actions and securities class actions filed in April 2020, which it is vigorously defending and for which it cannot estimate a loss range. Operating expense growth is expected to continue, and the company expects its revenue growth rate to decline over time. Subsequent to the quarter, Zoom announced the acquisition of Keybase, to be paid from existing cash. The filing describes a company whose profitability and growth reflect a sharp pandemic-driven rise in demand, while its gross margin compression, rising costs, and litigation exposure are material considerations for investors. Management states that existing cash and operating cash flow will be sufficient for at least the next 12 months.
Jun 5, 2020
2020-Q3
Zoom Communications Quarterly Report for Q3 Ended Oct 31, 2019
Zoom Video Communications, Inc. reported results for the third quarter of fiscal 2020 (three and nine months ended October 31, 2019). Revenue was $166.6 million for the three months, up from $90.1 million, and $434.4 million for the nine months, up from $224.7 million. The company reported net income of $2.2 million for the quarter and $10.0 million for the nine months, compared with a net loss of $0.6 million and net income of $1.9 million in the prior-year periods. Loss from operations was $1.7 million for the quarter, while operating income for the nine months was $2.1 million. Gross margin was 81% for both the quarter and nine months ended October 31, 2019. The balance sheet strengthened significantly following the April 2019 IPO, which provided net proceeds of $340.8 million from the base offering plus $107.1 million from the underwriters' option, and a concurrent $100.0 million private placement. Cash, cash equivalents, and marketable securities totaled $811.4 million as of October 31, 2019. Net cash provided by operating activities was $115.3 million for the nine months, and free cash flow (a non-GAAP measure defined in the filing) was $87.2 million. Remaining performance obligations were $517.0 million, with 64% expected to be recognized over the next 12 months. Key operating indicators included approximately 74,100 customers with more than 10 employees, up from 44,400, and 546 customers contributing more than $100,000 of trailing 12-month revenue, up from 277. The trailing 12-month net dollar expansion rate was greater than 130%. The filing also notes that the company received warning letters from OFAC and BIS in June 2019 with no fines assessed, and that its dual-class structure gives Class B holders 93.9% of voting power.
Dec 9, 2019
2020-Q2
Zoom Communications Quarterly Report for Q2 Ended Jul 31, 2019
Zoom Video Communications, Inc. reported its quarterly results for the three and six months ended July 31, 2019 in this Form 10-Q, filed September 13, 2019. Revenue for the three months ended July 31, 2019 was $145.8 million, up from $74.5 million, and revenue for the six months was $267.8 million, up from $134.6 million. The company reported net income of $5.5 million for the quarter and $7.8 million for the six months, compared with $3.8 million and $2.5 million a year earlier. Income from operations was $2.3 million for the quarter, down from $3.4 million, and $3.8 million for the six months, up from $1.7 million. The balance sheet changed significantly following the April 2019 IPO, which generated net proceeds of $447.9 million after underwriting discounts and commissions, plus $100.0 million from a concurrent private placement to Salesforce Ventures. Cash and cash equivalents rose to $213.9 million and marketable securities to $541.4 million, for total liquidity of $755.3 million as of July 31, 2019. Net cash provided by operating activities was $53.4 million for the six months, and free cash flow (a non-GAAP measure) was $32.5 million. Remaining performance obligations totaled $457.6 million, of which 62% is expected to be recognized as revenue over the next 12 months. Key operating metrics included roughly 66,300 customers with more than 10 employees, up from 37,200, and 466 customers contributing more than $100,000 of trailing 12-month revenue, up from 228. The trailing 12-month net dollar expansion rate was over 130%. The filing also discloses that the Class B common stock held 97.8% of voting power, and that OFAC and BIS issued warning letters, with no fines or penalties assessed, related to potential sanctions and export control violations.
Sep 13, 2019
2020-Q1
Zoom Communications Quarterly Report for Q1 Ended Apr 30, 2019
Zoom Video Communications, Inc. reported revenue of $121,988 thousand (about $122.0 million) for the three months ended April 30, 2019, up from $60,070 thousand in the prior-year period, with the filing stating growth of 103%. Gross profit was $97,884 thousand, and the company reported net income of $2,214 thousand, compared with a net loss of $1,340 thousand a year earlier. Income from operations was $1,557 thousand versus a loss of $1,684 thousand, driven by growth in revenue against operating expenses of $96,327 thousand, of which sales and marketing was $64,041 thousand. The balance sheet changed substantially following the April 23, 2019 IPO. Cash and cash equivalents rose to $629,793 thousand from $63,624 thousand, and total stockholders' equity moved to $719,728 thousand from a deficit of $(7,439) thousand. The filing states net proceeds from the IPO and concurrent private placement of approximately $541.5 million, and that cash, cash equivalents and marketable securities totaled $737.2 million. Net cash provided by operating activities was $22,236 thousand, and free cash flow (a non-GAAP measure defined in the filing) was $15,339 thousand. Key operating metrics in the filing include approximately 58,500 customers with more than 10 employees (versus 31,500 a year earlier), 405 customers contributing more than $100,000 of trailing 12-month revenue, and a trailing 12-month net dollar expansion rate of over 130%. Remaining performance obligations were $376.5 million, with 64% expected to be recognized over the next 12 months. The filing also discloses a dual-class structure in which Class B holders hold 98.7% of voting power, and it notes voluntary self-disclosures to OFAC and the Bureau of Industry and Security regarding potential sanctions and export control violations.
Jun 7, 2019