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Zoom Communications 8-K Report, Financial Results (Feb 26, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 26, 2024
Period End
February 26, 2024
Security
ZM
In the record · 2019–202610-K710-Q238-K67

ZM filed 7 annual reports (10-K), 23 quarterly reports (10-Q) and 67 current reports (8-K) between 2019 and 2026.

  1. Material agreement8-K · Jul ’21Jul ’21
  2. Leadership change8-K · Mar ’23Mar ’23
  3. Leadership change8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed February 26, 2024. Cited figures are marked; the original filing is the authoritative source.

Zoom Video Communications, Inc. filed this Form 8-K on February 26, 2024 to furnish Exhibit 99.1, a press release reporting results for the three months and fiscal year ended January 31, 2024.

Fourth-quarter total revenue was $1,146.5 milliona, up 2.6% year over year (2.7% in constant currency), with Enterprise revenue of $667.3 million, up 4.9%, and Online revenue of $479.2 million, down 0.5%. GAAP income from operations for the quarter was $168.5 million, versus a GAAP loss of $(129.9) million a year earlier, and GAAP net income attributable to common stockholders was $298.8 million, or $0.95 per diluted share. Non-GAAP net income was $444.0 million, or $1.42 per diluted share.

For the full fiscal year, total revenue was $4,527.2 millionb, up 3.1% (3.8% in constant currency), with Enterprise revenue up 8.7% to $2,619.3 million and Online revenue down 3.8% to $1,907.9 million. Net cash provided by operating activities was $1,598.8 million, up 23.9%, and free cash flow was $1,471.9 million, up 24.1%, representing a free cash flow margin of 32.5%. Cash and marketable securities totaled $7.0 billion as of January 31, 2024.

The company also announced guidance for the first quarter and full fiscal year 2025, including expected full-year revenue of approximately $4.600 billionc and free cash flow between $1.440 billion and $1.480 billion. The Board authorized a stock repurchase program of up to $1.5 billion of Class A common stock, funded from working capital and without obligation to repurchase any particular amount.

02—Key points

Key Highlights

  1. Q4 FY2024 total revenue of $1,146.5 million, up 2.6% year over year; Enterprise revenue up 4.9% to $667.3 million while Online revenue fell 0.5% to $479.2 million.
  2. Q4 GAAP income from operations of $168.5 million versus a GAAP loss of $(129.9) million in Q4 FY2023; non-GAAP income from operations of $443.7 million, with a non-GAAP operating margin of 38.7%.
  3. Q4 GAAP diluted EPS of $0.95 versus $(0.36) a year earlier; non-GAAP diluted EPS of $1.42 versus $1.22.
  4. Full-year FY2024 operating cash flow of $1,598.8 million (up 23.9%) and free cash flow of $1,471.9 million (up 24.1%), a 32.5% free cash flow margin.
  5. Full-year FY2024 GAAP diluted EPS of $2.07 and non-GAAP diluted EPS of $5.21; total revenue of $4,527.2 million, up 3.1%.
  6. FY2025 guidance: total revenue of approximately $4.600 billion, non-GAAP income from operations of $1.720–$1.730 billion, non-GAAP diluted EPS of $4.85–$4.88, and free cash flow of $1.440–$1.480 billion.
  7. Board authorized a stock repurchase program of up to $1.5 billion of Class A common stock, funded from working capital and subject to suspension or discontinuation at any time.

03—Questions

Frequently Asked Questions

  1. How did Zoom's revenue perform in the fourth quarter and full fiscal year 2024?

    Fourth-quarter total revenue was $1,146.5 million, up 2.6% year over year, or 2.7% in constant currency. For the full fiscal year, total revenue was $4,527.2 million, up 3.1% (3.8% in constant currency). Enterprise revenue grew 4.9% in the quarter and 8.7% for the year, while Online revenue declined 0.5% in the quarter and 3.8% for the year.

  2. How profitable was Zoom in the period?

    GAAP income from operations was $168.5 million in Q4 FY2024, compared with a GAAP loss of $(129.9) million a year earlier, and $525.3 million for the full year versus $245.4 million in FY2023. GAAP operating margin was 14.7% for the quarter and 11.6% for the year. Non-GAAP operating margin was 38.7% for the quarter and 39.2% for the year.

  3. What guidance did Zoom provide for fiscal year 2025?

    For the first quarter of FY2025, Zoom expects total revenue of approximately $1.125 billion and non-GAAP income from operations of $410.0 million to $415.0 million. For the full fiscal year 2025, it expects total revenue of approximately $4.600 billion, non-GAAP income from operations of $1.720 billion to $1.730 billion, non-GAAP diluted EPS of $4.85 to $4.88, and free cash flow of $1.440 billion to $1.480 billion. EPS and share count guidance exclude the impact of the new repurchase authorization.

  4. What is the new stock repurchase authorization?

    Zoom's Board authorized a program to repurchase up to $1.5 billion of Class A common stock. Repurchases may be made on the open market, in privately negotiated transactions, or otherwise, with timing and amount determined by management. The program is funded from working capital, does not obligate Zoom to buy any particular amount, and may be suspended or discontinued at any time. Repurchased shares will be retired.

  5. What were the key cash flow and balance sheet figures?

    Net cash provided by operating activities was $351.2 million in Q4 FY2024, up 66.0%, and $1,598.8 million for the full year, up 23.9%. Free cash flow was $332.7 million in the quarter, up 81.5%, and $1,471.9 million for the year, up 24.1%. Total cash, cash equivalents, and marketable securities, excluding restricted cash, were $7.0 billion as of January 31, 2024.

04—Continue

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