Core Insights - The video collaboration and hybrid work market is rapidly evolving, with Zoom Communications and Microsoft emerging as key players [1][3] - The global video conferencing market is projected to grow from approximately $8.88 billion in 2024 to around $28.26 billion by 2034, reflecting a CAGR of about 12% [2] Zoom Communications - Zoom's video-first design offers superior quality and reliability, with Q2 fiscal 2026 revenue rising 4.7% year over year to $1.22 billion [4][10] - AI initiatives, such as AI Companion, are enhancing user experience and driving enterprise adoption, with monthly active users increasing over 4X year over year [5] - Zoom's integrated ecosystem, including Zoom Workplace and Contact Center, is contributing to competitive positioning, with significant growth in large deals and $100,000-plus ARR customers [6][10] - The Zacks Consensus Estimate for Zoom's fiscal 2026 earnings has been revised upward by 3.2% to $5.77 per share, indicating market optimism [7] Microsoft - Microsoft's Teams benefits from integration within Microsoft 365, with Commercial Cloud revenues rising 18% year over year to $33.1 billion in Q4 fiscal 2025 [8] - AI features in Microsoft 365, such as Copilot, enhance functionality but lack video-specific differentiation, which may limit Teams' competitive edge in video collaboration [9][11] - The Zacks Consensus Estimate for Microsoft's fiscal 2026 earnings is pegged at $15.35 per share, with a 1.9% upward revision, but market sentiment appears less optimistic compared to Zoom [12] Price Performance and Valuation - Year-to-date, Microsoft shares have gained 20.1%, while Zoom shares have decreased by 0.4%, positioning Zoom for potential upside [13] - Microsoft trades at a forward price-to-sales ratio of 11.92X, while Zoom trades at 5.02X, indicating a relative discount for Zoom and greater room for re-rating [16] - Both companies are considered overvalued, but Zoom's relative discount makes it a more attractive investment opportunity [19]

Core Viewpoint - Zoom Communications (ZM) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates [1][2] Earnings Estimate Revisions - Analysts' optimism regarding Zoom's earnings prospects is leading to higher estimates, which is expected to positively impact the stock price [2] - The current-quarter earnings estimate is $1.42 per share, reflecting a +2.9% change from the previous year, with a 6.52% increase in consensus estimates over the last 30 days due to seven upward revisions [7] - For the full year, the expected earnings are $5.77 per share, indicating a +4.2% year-over-year change, with nine estimates moving higher in the past month and a 9.4% increase in consensus estimates [8][9] Zacks Rank and Performance - Zoom has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which historically correlate with strong stock performance [10] - Stocks with Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500 [10] - The stock has gained 14.7% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [11]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated based on value, growth, and momentum characteristics, with scores ranging from A to F, where A indicates the highest potential for outperformance [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score identifies attractive stocks based on valuation ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Growth Score - The Growth Score assesses stocks based on projected and historical earnings, sales, and cash flow, targeting growth investors [4] Momentum Score - The Momentum Score evaluates stocks based on price trends and earnings estimate changes, assisting momentum investors in timing their purchases [5] VGM Score - The VGM Score combines the three Style Scores to highlight stocks with the best overall value, growth, and momentum characteristics [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7][8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering earnings estimate trends [10][11] Company Spotlight: Zoom Video Communications - Zoom Video Communications is currently rated 2 (Buy) on the Zacks Rank, with a VGM Score of B, benefiting from increased demand for remote communication tools [12] - The company is projected to have year-over-year earnings growth of 1.1% for the current fiscal year, with an upward revision in earnings estimates [13]

Core Insights - The performance of Zoom Communications' international operations is critical for understanding its financial resilience and growth potential [1][2] - The company's total revenue for the quarter ending July 2025 was $1.22 billion, reflecting a 4.7% increase year-over-year [4] International Revenue Analysis - APAC contributed $148.34 million, or 12.2% of total revenue, showing a surprise increase of 1.51% compared to analyst expectations [5] - EMEA accounted for $194.92 million, or 16% of total revenue, with a surprise increase of 2.57% over expectations [6] Future Revenue Projections - Analysts forecast revenues of $1.21 billion for the current fiscal quarter, a 2.9% increase year-over-year, with expected contributions of 12.3% from APAC and 15.9% from EMEA [7] - For the entire year, total revenue is projected to be $4.8 billion, a 3% improvement from the previous year, with APAC and EMEA expected to contribute $586.61 million and $763.55 million, respectively [8] Market Dynamics - The reliance on international markets presents both opportunities and challenges for Zoom, necessitating close monitoring of revenue trends [9] - Analysts are increasingly focused on international revenue patterns due to the complexities of global interdependence and geopolitical issues [10] Stock Performance - Over the past month, Zoom's stock increased by 10.2%, outperforming the Zacks S&P 500 composite, which rose by 2.7% [13] - In the last three months, the stock price increased by 1.5%, while the S&P 500 index rose by 11% [13]

Investment Rating - The industry investment rating is "Outperform the Market," indicating an expected industry index increase of over 5% in the next six months [46]. Core Insights - The report emphasizes a positive trend in the Chinese AI sector, highlighting advancements in domestic models and a significant acceleration in AI application commercialization [6]. - The report suggests that AI applications have entered a phase characterized by high-frequency usage and high ROI realization, with notable growth in companies like Zoom, Workday, and Palo Alto Networks [4][6]. - The release of DeepSeek V3.1 is seen as a breakthrough, enhancing model capabilities and hardware compatibility, which reflects a collaborative optimization paradigm in the AI industry [6][34]. Summary by Sections Global AI Dynamics - Zoom reported a robust Q2 2025 performance, with a 4.7% year-over-year revenue increase to $1.22 billion, driven by AI products [14]. - Workday's Q2 2025 revenue reached $2.348 billion, a 12.6% increase, with over 30% of customer transactions involving AI products [20]. - Palo Alto Networks achieved a total revenue of $2.5 billion in Q2 2025, a 16% increase, with AI-related ARR growing 2.5 times [26]. Key Company Financials - Zoom's AI Companion saw monthly active users increase over fourfold year-over-year, contributing to its revenue growth [14]. - Workday's AI-related net new ACV doubled year-over-year, indicating strong demand for AI-driven solutions [20]. - Palo Alto Networks reported a 32% year-over-year increase in next-generation security ARR, reflecting strong customer commitment to AI infrastructure [26]. AI Model Developments - DeepSeek V3.1 was launched with 671 billion total parameters and enhanced capabilities for code understanding and agent tasks, marking a significant advancement in AI model technology [34]. - ByteDance's M3-Agent framework was released, showcasing superior performance in multi-modal processing and long-term memory capabilities compared to mainstream models [35]. - NVIDIA introduced the 9B parameter model Nemotron Nano 2, achieving breakthroughs in performance and efficiency through a mixed architecture [38].

Core Insights - Goldman Sachs reiterated a "Neutral" rating and a target price of $87 for Zoom Video Communications (ZM.US) following the company's second-quarter earnings report that exceeded expectations [1] - The report highlighted strong growth in AI applications, with monthly active users of AI Companion increasing fourfold year-over-year [1] - The company reported a 4.7% year-over-year revenue growth, surpassing market expectations by 1.6%, marking the largest revenue beat in four quarters [1] Financial Performance - The non-GAAP operating margin was 41%, exceeding market expectations by 260 basis points, while free cash flow also exceeded expectations by 29% [1] - Gross margin reached 76.38%, and the PEG ratio was 0.88, indicating attractive valuation relative to growth potential [1] - The financial health score of the company is rated as "excellent," suggesting the stock may be undervalued based on fair value analysis [1] Business Segments - Enterprise business revenue grew by 7% year-over-year, outperforming the previous quarter's growth of 5.9% and last year's 3.5% [2] - The net expansion rate remained stable at 98%, although the online churn rate increased to 2.9% quarter-over-quarter, remaining flat year-over-year [2] - Zoom cautiously raised its fiscal 2026 revenue guidance by 0.1%, excluding approximately $20 million in excess [2] Future Outlook - The company anticipates a slowdown in revenue growth for the third quarter due to a high comparison base and reduced earnings from professional services, with a projected acceleration in the fourth quarter driven by strong enterprise business momentum [2] - Analysts maintain a neutral stance on the stock, reflecting a balanced view of Zoom's financial performance and its ability to consistently exceed earnings expectations in recent quarters [2]

Market Updates - Dongfeng Motor Group (00489) opened over 56% higher after announcing its subsidiary, Lantu Motors, will go public in Hong Kong through a listing by introduction, while Dongfeng will simultaneously complete its privatization and delisting [1] - Xirui (02507) fell over 15% after being removed from the Hang Seng Composite Index, raising concerns about its potential removal from the Hong Kong Stock Connect list [1] - Luoyang Molybdenum (03993) rose over 9% after reporting a 60.07% year-on-year increase in net profit for the first half of the year, with all product output meeting targets [1] - Gold stocks surged, with Zijin Mining (02899) up over 6%, China Gold International (02099) up over 5%, Lingbao Gold (03330) up over 2%, and Shandong Gold (01787) up over 4%, driven by dovish comments from Powell at the Jackson Hole conference, raising expectations for interest rate cuts and potentially higher gold prices [1] - China Tobacco Hong Kong (06055) fell over 4% after reporting a nearly 9.8% year-on-year increase in net profit, impacted by rising leaf costs [1] Company Performance - Huaxing Capital Holdings (01911) rose over 6% after signing a strategic cooperation memorandum with YZiLabs to promote the listing of BNB on compliant exchanges [2] - Jinli Permanent Magnet (06680) increased over 14% following the introduction of new rare earth management measures, with expectations for rising rare earth prices [2] - CRRC Corporation (01766) rose over 5% after reporting a 72.48% year-on-year increase in net profit for the first half of 2025, with new orders totaling approximately 146 billion [2] - China Foods (00506) surged over 17% after being included in the Hang Seng Composite Index, with potential inclusion in the Hong Kong Stock Connect [2] - Times Electric (03898) rose over 6% after reporting a 12.93% year-on-year increase in net profit for the first half of 2025, focusing on rail transit traction and conversion systems [2] US Market Highlights - Zoom Video Communications (ZM.US) rose 12.71% after reporting second-quarter earnings that exceeded expectations and raising its annual guidance [3] - Nvidia (NVDA.US) increased 1.72% amid reports of halting production of components for H20 chips tailored for the Chinese market [3] - Intuit (INTU.US) fell 5.03% after reporting fourth-quarter earnings that missed revenue growth expectations [3] - Ross Stores (ROST.US) rose 1.12% after reporting second-quarter earnings that exceeded expectations, with same-store sales up 2% year-on-year [3] - NIO (NIO.US) continued to rise 14.44% as it officially launched pre-sales for its new ES8 model, set to deliver in September 2025 [3] Additional Company Updates - Miniso (MNSO.US) surged 20.12% after reporting a 23.1% year-on-year increase in total revenue for Q2, with strong same-store sales growth in both China and the US [4] - XPeng Motors (XPEV.US) rose 4.40% after its CEO increased his stake by purchasing 3.1 million Class A shares [4] - Futu Holdings (FUTU.US) increased 5.65% after reporting a 69.7% year-on-year revenue growth for Q2, receiving target price upgrades from multiple major banks [5] - Alibaba (BABA.US) rose 4.11% after reorganizing its business segments on its official website, although this does not indicate any structural changes [5]

Financial Performance - Zoom Communications 第二季度业绩超出预期 [1] Industry Trends - 视频会议软件提供商 Zoom Communications 乘上了人工智能的浪潮 [1]

[FORM 10-Q Filing Information](index=1&type=section&id=FORM%2010-Q) This section provides essential details regarding the company's quarterly report filing, including registrant information and key share data [Registrant Information](index=1&type=section&id=Registrant%20Information) This report is Zoom Communications, Inc.'s quarterly filing as of July 31, 2025, registered in Delaware with headquarters in San Jose, California, classified as a 'large accelerated filer' - Zoom Communications, Inc.'s quarterly report filing date is **July 31, 2025**[2](index=2&type=chunk) - The company is incorporated in Delaware and headquartered in San Jose, California[2](index=2&type=chunk) - The company is classified as a **Large Accelerated Filer**[4](index=4&type=chunk) Outstanding Shares Information (As of August 8, 2025) | Share Class | Number of Shares | | :--- | :--- | | Class A Common Stock | 266,453,609 | | Class B Common Stock | 32,835,755 | [TABLE OF CONTENTS](index=2&type=section&id=TABLE%20OF%20CONTENTS) This section provides an organized listing of all chapters and sub-sections within the quarterly report for easy navigation [Special Note Regarding Forward-Looking Statements](index=3&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) This section highlights the inherent uncertainties and risks associated with forward-looking statements in the report [Nature of Forward-Looking Statements](index=3&type=section&id=Nature%20of%20Forward-Looking%20Statements) This report contains forward-looking statements about future operations, financial condition, and strategy, which are subject to significant risks and uncertainties - Forward-looking statements cover future financial performance (revenue, costs, gross profit, operating expenses), key business metric trends, liquidity needs, market position and opportunities, growth strategies, AI capability development, platform security and privacy enhancements, customer acquisition and retention capabilities, market expansion, growth management, and macroeconomic conditions (geopolitical conflicts, inflation, interest rate fluctuations, exchange rate fluctuations)[9](index=9&type=chunk) - Investors should not place undue reliance on forward-looking statements, as actual results may differ materially due to factors described in the "Risk Factors" section, and the company undertakes no obligation to update these statements unless required by law[10](index=10&type=chunk)[12](index=12&type=chunk) [Summary Risk Factors](index=4&type=section&id=Summary%20Risk%20Factors) This section provides a concise overview of the primary risks that could materially affect the company's business, financial condition, and operating results [Key Business and Operational Risks](index=4&type=section&id=Key%20Business%20and%20Operational%20Risks) The company faces multiple business and operational risks, including customer acquisition challenges, revenue growth volatility, service disruptions, intense market competition, and macroeconomic impacts - Business relies on attracting new customers, upselling to existing customers, and converting free users to paid users; any decline will harm the business[15](index=15&type=chunk)[18](index=18&type=chunk) - Revenue growth rates have fluctuated in the past and may continue to decline in the future[15](index=15&type=chunk)[18](index=18&type=chunk) - Interruptions, delays, or failures in data center or cloud hosting services could harm service delivery and potentially lead to company liability[15](index=15&type=chunk)[18](index=18&type=chunk) - The company operates in a highly competitive market, facing challenges from competitors with greater brand recognition, longer operating histories, and more resources[15](index=15&type=chunk)[18](index=18&type=chunk) - Macroeconomic changes, such as shifts in consumer or business spending, could significantly impact the company's business[15](index=15&type=chunk)[18](index=18&type=chunk) - Selling to large organizations may lead to longer sales cycles and deployment challenges[15](index=15&type=chunk)[18](index=18&type=chunk) - Revenue is derived from platform subscription sales, and a decrease in demand for the platform or communication collaboration technology will harm the business[15](index=15&type=chunk)[18](index=18&type=chunk) - The company has incurred net losses in the past, and there is no guarantee it can maintain or increase profitability in the future[15](index=15&type=chunk)[18](index=18&type=chunk) - The company may be unable to adapt to rapid technological changes, scale its platform, or develop new features[15](index=15&type=chunk)[18](index=18&type=chunk) - Security measures have been breached in the past and may occur again, potentially harming reputation, leading to significant fines and liabilities, and impacting sales[15](index=15&type=chunk)[18](index=18&type=chunk) - The company has a limited operating history at its current business scale, making it difficult to evaluate prospects and future operating results[15](index=15&type=chunk)[18](index=18&type=chunk) - Failure to comply with privacy, data protection, and information security laws and regulations could harm reputation and business, or lead to significant fines and liabilities[15](index=15&type=chunk)[18](index=18&type=chunk) - Loss of the CEO or other senior management team members could hinder the execution of business strategy[15](index=15&type=chunk)[18](index=18&type=chunk) - International business expansion presents business, regulatory, and economic risks[15](index=15&type=chunk)[18](index=18&type=chunk) - The company may face lawsuits or enforcement requests under U.S. and international laws, increasing operating costs or harming the business[15](index=15&type=chunk)[18](index=18&type=chunk) - Certain products, such as Zoom Phone, are subject to U.S. federal and international regulations, and non-compliance could harm the business and incur liabilities[15](index=15&type=chunk)[18](index=18&type=chunk) - The use of generative AI in products and services may lead to operational challenges, legal liabilities, reputational issues, competitive risks, and regulatory concerns[15](index=15&type=chunk)[18](index=18&type=chunk) - The dual-class stock structure concentrates voting control in pre-IPO shareholders, including executives, employees, and directors, limiting other shareholders' influence over company affairs[15](index=15&type=chunk)[18](index=18&type=chunk) [PART I – Financial Information](index=6&type=section&id=PART%20I%20%E2%80%93%20Financial%20Information) This section presents the company's unaudited condensed consolidated financial statements and related notes for the reported period [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section contains Zoom Communications, Inc.'s unaudited condensed consolidated financial statements as of July 31, 2025, including balance sheets, statements of operations, comprehensive income, stockholders' equity, and cash flows, along with related notes [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of July 31, 2025, total assets were **$11.044 billion**, a slight increase from **$10.988 billion** on January 31, 2025, driven by growth in marketable securities and strategic investments Condensed Consolidated Balance Sheets Key Data (Units: $ thousand) | Metric | July 31, 2025 | January 31, 2025 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $1,198,576 | $1,349,380 | | Marketable securities | $6,580,073 | $6,442,329 | | Total Assets | $11,044,063 | $10,988,421 | | **Liabilities** | | | | Total Liabilities | $2,093,986 | $2,053,337 | | **Stockholders' Equity** | | | | Total Stockholders' Equity | $8,950,077 | $8,935,084 | - As of July 31, 2025, total assets slightly increased from January 31, 2025, primarily due to growth in marketable securities and strategic investments[21](index=21&type=chunk) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three and six months ended July 31, 2025, the company reported year-over-year growth in both revenue and net income, with three-month revenue up **4.7%** and net income up **63.8%** Condensed Consolidated Statements of Operations Key Data (Units: $ thousand) | Metric | July 31, 2025 (3 months) | July 31, 2024 (3 months) | YoY Change (%) | July 31, 2025 (6 months) | July 31, 2024 (6 months) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $1,217,227 | $1,162,520 | 4.7% | $2,391,942 | $2,303,754 | 3.8% | | Cost of revenue | $273,165 | $285,089 | -4.2% | $551,567 | $558,391 | -1.2% | | Gross Profit | $944,062 | $877,431 | 7.6% | $1,840,375 | $1,745,363 | 5.4% | | Operating Income | $321,735 | $202,370 | 59.0% | $563,327 | $405,392 | 39.0% | | Net gain on strategic investments | $45,056 | $3,107 | 1350.1% | $31,437 | $20,461 | 53.6% | | Net Income | $358,592 | $219,015 | 63.8% | $613,195 | $435,323 | 40.8% | | Basic Net Income Per Share | $1.19 | $0.71 | 67.6% | $2.02 | $1.41 | 43.3% | | Diluted Net Income Per Share | $1.16 | $0.70 | 65.7% | $1.97 | $1.38 | 42.8% | - Gross margin improved for both the three and six-month periods, reaching **77.6%** (2025) and **75.5%** (2024), and **76.9%** (2025) and **75.8%** (2024), respectively[30](index=30&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) For the three and six months ended July 31, 2025, comprehensive income was **$343 million** and **$608 million**, respectively, both higher than the prior year, with other comprehensive income (loss) primarily influenced by unrealized gains and losses on available-for-sale securities Condensed Consolidated Statements of Comprehensive Income Key Data (Units: $ thousand) | Metric | July 31, 2025 (3 months) | July 31, 2024 (3 months) | July 31, 2025 (6 months) | July 31, 2024 (6 months) | | :--- | :--- | :--- | :--- | :--- | | Net Income | $358,592 | $219,015 | $613,195 | $435,323 | | Net unrealized (loss) gain on available-for-sale securities | $(15,622) | $19,681 | $(5,467) | $1,128 | | Comprehensive Income | $342,970 | $238,696 | $607,728 | $436,451 | [Condensed Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) As of July 31, 2025, total stockholders' equity was **$8.950 billion**, a slight increase from **$8.935 billion** on January 31, 2025, reflecting stock repurchases and share issuances related to equity incentive plans Condensed Consolidated Stockholders' Equity Key Data (Units: $ thousand) | Metric | July 31, 2025 | January 31, 2025 | | :--- | :--- | :--- | | Common Stock | $299 | $305 | | Additional Paid-in Capital | $4,537,542 | $5,130,271 | | Retained Earnings | $4,412,713 | $3,799,518 | | Total Stockholders' Equity | $8,950,077 | $8,935,084 | - As of July 31, 2025, the company repurchased and retired **5,950,898** shares of Class A common stock totaling **$463.4 million** (three months) and **11,512,818** shares totaling **$881.4 million** (six months)[29](index=29&type=chunk)[32](index=32&type=chunk) - Share issuances resulted from stock option exercises, restricted stock unit releases, and the employee stock purchase plan, while stock repurchases and tax payments related to net settlement of equity awards reduced share count[29](index=29&type=chunk)[32](index=32&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended July 31, 2025, net cash provided by operating activities was **$1.005 billion**, slightly lower than the prior year, while net cash used in investing activities significantly decreased, and net cash used in financing activities substantially increased due to stock repurchases Condensed Consolidated Cash Flows Key Data (Units: $ thousand) | Metric | July 31, 2025 (6 months) | July 31, 2024 (6 months) | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,005,201 | $1,037,525 | | Net cash used in investing activities | $(185,803) | $(648,734) | | Net cash used in financing activities | $(985,392) | $(398,716) | | Net decrease in cash, cash equivalents, and restricted cash | $(152,718) | $(16,071) | | Cash, cash equivalents, and restricted cash at end of period | $1,208,699 | $1,549,309 | - Operating cash flow slightly decreased, but cash outflow from investing activities significantly reduced, primarily due to lower net purchases of marketable securities and decreased property and equipment purchases[35](index=35&type=chunk) - Cash outflow from financing activities significantly increased, mainly due to higher stock repurchase expenditures and tax payments related to net settlement of equity awards[35](index=35&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, covering business overview, significant accounting policies, revenue recognition, investments, fair value measurements, balance sheet components, commitments and contingencies, stockholders' equity and equity incentive plans, income taxes, net income per share, segment information, and subsequent events [1. Summary of Business and Significant Accounting Policies](index=12&type=section&id=1.%20Summary%20of%20Business%20and%20Significant%20Accounting%20Policies) Zoom Communications, Inc. provides an AI-first open work platform, enabling seamless communication and collaboration through products like Zoom Workplace, Zoom Business Services, and Employee Experience, while evaluating impacts of recent accounting standard updates - Zoom offers an AI-first open work platform, with products including Zoom Workplace (Meetings and Phone), Zoom Business Services (Contact Center), and Employee Experience (Workvivo)[38](index=38&type=chunk) - The company is evaluating the impact of ASU 2023-09 (income tax disclosures), ASU 2024-03 (expense classification disclosures), and ASU 2025-05 (credit losses on receivables and contract assets) on its consolidated financial statements[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk) [2. Revenue Recognition](index=13&type=section&id=2.%20Revenue%20Recognition) Revenue primarily derives from subscription agreements, with the Americas contributing approximately **72%**, APAC **12%**, and EMEA **16%**; remaining performance obligations total **$3.976 billion**, with **61%** expected to be recognized within 12 months Revenue by Geographic Region (Units: $ thousand) | Region | July 31, 2025 (3 months) | Revenue Share (%) | July 31, 2024 (3 months) | Revenue Share (%) | July 31, 2025 (6 months) | Revenue Share (%) | July 31, 2024 (6 months) | Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Americas | $873,974 | 71.8% | $835,728 | 71.9% | $1,721,670 | 72.0% | $1,654,411 | 71.8% | | APAC | $148,337 | 12.2% | $142,315 | 12.2% | $290,108 | 12.1% | $280,629 | 12.2% | | EMEA | $194,916 | 16.0% | $184,477 | 15.9% | $380,164 | 15.9% | $368,714 | 16.0% | | Total | $1,217,227 | 100.0% | $1,162,520 | 100.0% | $2,391,942 | 100.0% | $2,303,754 | 100.0% | - As of July 31, 2025, total remaining performance obligations were **$3.9761 billion**, with **61%** expected to be recognized as revenue within the next 12 months[51](index=51&type=chunk) [3. Investments](index=14&type=section&id=3.%20Investments) As of July 31, 2025, the company held **$6.580 billion** in marketable securities, primarily U.S. government agency securities, agency bonds, and corporate debt, alongside **$648 million** in strategic investments, mainly equity securities Marketable Securities Composition (Units: $ thousand) | Security Type | Fair Value as of July 31, 2025 | Fair Value as of January 31, 2025 | | :--- | :--- | :--- | | U.S. government agency securities | $4,789,387 | $4,415,930 | | Agency bonds | $991,578 | $1,174,484 | | Corporate and other debt securities | $730,731 | $720,795 | | Treasury bills | $65,414 | $110,279 | | Commercial paper | $2,963 | $20,841 | | **Total** | **$6,580,073** | **$6,442,329** | Strategic Investments Composition (Units: $ thousand) | Investment Type | Total as of July 31, 2025 | Total as of January 31, 2025 | | :--- | :--- | :--- | | Equity securities | $643,962 | $587,031 | | Debt securities | $3,946 | $4,450 | | **Total** | **$647,908** | **$591,481** | [4. Fair Value Measurements](index=15&type=section&id=4.%20Fair%20Value%20Measurements) The company employs a three-level hierarchy for fair value measurement of financial assets, classifying highly liquid assets as Level 1, observable market input assets as Level 2, and private debt securities as Level 3 - The company classifies highly liquid money market funds and publicly traded equity securities as Level 1 within the fair value hierarchy[56](index=56&type=chunk) - Commercial paper, agency bonds, corporate and other debt securities, U.S. government agency securities, and Treasury bills are classified as Level 2, as their valuations use observable market inputs[56](index=56&type=chunk) - Private debt securities are classified as Level 3 due to the lack of relevant observable market data[56](index=56&type=chunk) [5. Balance Sheet Components](index=16&type=section&id=5.%20Balance%20Sheet%20Components) This section details key balance sheet components, including net accounts receivable, prepaid expenses and other current assets, net property and equipment, other non-current assets, accrued expenses and other current liabilities, and other non-current liabilities Accounts Receivable, Net (Units: $ thousand) | Metric | July 31, 2025 | January 31, 2025 | | :--- | :--- | :--- | | Gross accounts receivable | $539,700 | $517,306 | | Less: Allowance for credit losses | $(17,987) | $(17,262) | | Less: Allowance for returns | $(4,914) | $(4,816) | | **Accounts Receivable, Net** | **$516,799** | **$495,228** | Property and Equipment, Net (Units: $ thousand) | Metric | July 31, 2025 | January 31, 2025 | | :--- | :--- | :--- | | Servers | $423,793 | $427,664 | | Software | $144,924 | $123,259 | | Computer and office equipment | $44,489 | $47,021 | | Leasehold improvements | $57,169 | $54,885 | | Furniture and fixtures | $5,681 | $5,767 | | **Total Property and Equipment** | **$676,056** | **$658,596** | | Less: Accumulated depreciation and amortization | $(374,599) | $(328,121) | | **Property and Equipment, Net** | **$301,457** | **$330,475** | Accrued Expenses and Other Current Liabilities (Units: $ thousand) | Metric | July 31, 2025 | January 31, 2025 | | :--- | :--- | :--- | | Accrued expenses | $171,850 | $200,416 | | Accrued compensation and benefits | $135,851 | $193,110 | | Income tax liabilities | $21,080 | $18,815 | | Sales and other non-income tax liabilities | $39,622 | $41,755 | | Customer deposit liabilities | $55,220 | $47,312 | | Operating lease liabilities (current) | $22,243 | $27,026 | | Other | $25,151 | $30,128 | | **Total** | **$471,017** | **$558,562** | [6. Commitments and Contingencies](index=18&type=section&id=6.%20Commitments%20and%20Contingencies) The company faces various legal proceedings and investigations, including a concluded SEC investigation, a court-approved shareholder derivative settlement, and a **$150 million** securities class action settlement - The SEC concluded its investigation into the company on **July 30, 2025**, without recommending enforcement action, leading to the reversal of **$18 million** in previously accrued expenses[64](index=64&type=chunk) - A shareholder derivative lawsuit was settled and approved by the court on **July 31, 2025**, with the company agreeing to implement corporate governance reforms and pay **$1.35 million** in plaintiffs' attorneys' fees[65](index=65&type=chunk) - A securities class action lawsuit reached a **$150 million** settlement agreement, with the company paying **$60 million** (after **$90 million** insurance coverage), which received preliminary approval on May 28, 2025, and a motion for final approval was filed on July 18, 2025[67](index=67&type=chunk) [7. Stockholders' Equity and Equity Incentive Plans](index=20&type=section&id=7.%20Stockholders'%20Equity%20and%20Equity%20Incentive%20Plans) The company has authorized Class A and Class B common stock, with a **$2.7 billion** stock repurchase program, of which **$881.4 million** in Class A common stock has been repurchased, leaving **$724.7 million** authorized for future repurchases - The company's Board of Directors has authorized a total of **$2.7 billion** for Class A common stock repurchases (approved **$1.5 billion** in February 2024 and an additional **$1.2 billion** in November 2024)[70](index=70&type=chunk) Stock Repurchase Activity (As of July 31, 2025) | Period | Number of Class A Common Stock Repurchased | Total Amount Repurchased ($ million) | | :--- | :--- | :--- | | For the three months ended July 31, 2025 | 5,950,898 | $463.4 | | For the six months ended July 31, 2025 | 11,512,818 | $881.4 | | **Remaining Repurchase Authorization** | **-** | **$724.7** | - As of July 31, 2025, unrecognized stock-based compensation expense related to RSUs was **$1.3675 billion**, expected to be recognized over **2.7 years**; for ESPP, it was **$24.8 million**, expected over **1.2 years**[74](index=74&type=chunk)[76](index=76&type=chunk) Stock-Based Compensation Expense (Units: $ thousand) | Expense Category | July 31, 2025 (3 months) | July 31, 2024 (3 months) | July 31, 2025 (6 months) | July 31, 2024 (6 months) | | :--- | :--- | :--- | :--- | :--- | | Cost of revenue | $24,222 | $31,299 | $51,649 | $62,874 | | Research and development | $70,476 | $81,597 | $143,412 | $164,166 | | Sales and marketing | $63,094 | $84,225 | $131,527 | $161,459 | | General and administrative | $30,907 | $40,829 | $63,680 | $78,876 | | **Total Stock-Based Compensation Expense** | **$188,699** | **$237,950** | **$390,268** | **$467,375** | [8. Income Taxes](index=22&type=section&id=8.%20Income%20Taxes) For the three and six months ended July 31, 2025, income tax expense increased by **21.2%** and **0.8%**, respectively, with the effective tax rate decreasing due to changes in pre-tax income and stock-based compensation tax impacts Income Tax Expense and Effective Tax Rate (Units: $ thousand) | Metric | July 31, 2025 (3 months) | July 31, 2024 (3 months) | July 31, 2025 (6 months) | July 31, 2024 (6 months) | | :--- | :--- | :--- | :--- | :--- | | Income Before Income Taxes | $448,162 | $292,889 | $763,927 | $584,853 | | Income Tax Expense | $89,570 | $73,874 | $150,732 | $149,530 | | Effective Tax Rate | 20.0% | 25.2% | 19.7% | 25.6% | - The effective tax rate decreased year-over-year, primarily due to increased income before income taxes and changes in tax shortfalls related to stock-based compensation and tax benefits[78](index=78&type=chunk) [9. Net Income Per Share](index=23&type=section&id=9.%20Net%20Income%20Per%20Share) For the three and six months ended July 31, 2025, both basic and diluted net income per share significantly increased, reaching **$1.19** and **$1.16** for three months, and **$2.02** and **$1.97** for six months, respectively Net Income Per Share (Units: $) | Metric | July 31, 2025 (3 months) | July 31, 2024 (3 months) | July 31, 2025 (6 months) | July 31, 2024 (6 months) | | :--- | :--- | :--- | :--- | :--- | | Basic Net Income Per Share | $1.19 | $0.71 | $2.02 | $1.41 | | Diluted Net Income Per Share | $1.16 | $0.70 | $1.97 | $1.38 | - Certain potential common shares were excluded from diluted net income per share calculation because their inclusion would have been anti-dilutive[79](index=79&type=chunk) [10. Segment information](index=23&type=section&id=10.%20Segment%20information) The company operates as a single operating and reportable segment, as the Chief Operating Decision Maker (CODM) manages business activities on a consolidated basis, using consolidated net income to allocate resources and assess performance - The company has only one operating and reportable segment because the Chief Operating Decision Maker (CODM) manages business activities on a consolidated basis[80](index=80&type=chunk) - The CODM uses consolidated net income to monitor results and decide whether to reinvest profits, without using asset or liability information to evaluate segment performance[81](index=81&type=chunk) [11. Subsequent Events](index=24&type=section&id=11.%20Subsequent%20Events) As of August 22, 2025, the company assessed subsequent events and recognized an approximate **$400 million** unrealized gain on a strategic investment after July 31, 2025, reflecting an increase in fair value of an equity investment in a private company following an observable transaction in August 2025 - After July 31, 2025, the company recognized an approximate **$400 million** unrealized gain on a strategic investment, stemming from an increase in the fair value of an equity investment in a private company following an observable transaction in August 2025[84](index=84&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section discusses the company's financial condition and operating results as of July 31, 2025, highlighting its AI-first platform strategy, macroeconomic impacts, key performance drivers, non-GAAP financial measures, and detailed operational comparisons [Overview](index=24&type=section&id=Overview) Zoom Communications, Inc. provides an AI-first open work platform, enhancing productivity, collaboration, and business outcomes through Zoom Workplace, Zoom Business Services, and Employee Experience, with a commitment to responsible AI use - Zoom's platform is an AI-first open work platform designed to enable seamless communication and collaboration through products like Zoom Workplace, Zoom Business Services, and Employee Experience[86](index=86&type=chunk)[87](index=87&type=chunk) - The company continuously invests in AI, expanding its agent AI skills, agents, and models, focusing on supporting individual productivity, enhancing collaboration, and helping customer teams improve efficiency[88](index=88&type=chunk) - Zoom employs a federated AI approach, dynamically leveraging multiple large language models (LLMs), including OpenAI, Anthropic, and Meta, as well as small language models (SLMs)[88](index=88&type=chunk)[89](index=89&type=chunk) - The company is committed to responsible AI use, not using customers' audio, video, chat, screen sharing, attachments, or other communication-type customer content to train Zoom or its third-party AI models[89](index=89&type=chunk) - The Zoom platform prioritizes security and privacy, featuring 30 globally hosted data centers and robust encryption options[90](index=90&type=chunk) [Macroeconomic Conditions and Other Factors](index=25&type=section&id=Macroeconomic%20Conditions%20and%20Other%20Factors) Macroeconomic conditions, including geopolitical conflicts, inflation, interest rate, and exchange rate fluctuations, continue to create uncertainty for subscription demand, leading to extended sales cycles and increased IT budget scrutiny - The macroeconomic environment, including geopolitical conflicts, inflationary pressures, interest rate fluctuations, and foreign exchange rate volatility, continues to create uncertainty for demand for the company's open work platform subscriptions[93](index=93&type=chunk) - These factors have led to extended sales cycles and increased scrutiny of IT budgets by existing and potential customers[93](index=93&type=chunk) - Although enterprise customer revenue continues to grow, the growth rate is affected by factors such as increased market penetration, heightened competition, and business maturity[93](index=93&type=chunk) - The enactment of the "One Big Beautiful Bill Act" (OBBBA) introduced new corporate income tax provisions, including an immediate deduction option for R&D expenses and a permanent extension of 100% bonus depreciation, but its impact on the financial statements as of July 31, 2025, is not significant[95](index=95&type=chunk) [Key Factors Affecting Our Performance](index=25&type=section&id=Key%20Factors%20Affecting%20Our%20Performance) Company performance is influenced by new customer acquisition, expansion within existing enterprise customers (measured by net dollar expansion rate), online customer retention (measured by average monthly churn rate), platform innovation, and international market opportunities [Acquiring New Customers](index=25&type=section&id=Acquiring%20New%20Customers) The company is focused on continuously increasing its customer base for Zoom Workplace and Zoom Business Services, investing in sales and marketing to capture market opportunities and attract new customers - The company focuses on increasing the number of customers for Zoom Workplace and Zoom Business Services and plans to continue investing in sales and marketing to attract new customers[97](index=97&type=chunk) [Expansion of Zoom Across Existing Enterprise Customers](index=26&type=section&id=Expansion%20of%20Zoom%20Across%20Existing%20Enterprise%20Customers) The company measures existing enterprise customer growth by net dollar expansion rate, which was **98%** for both July 31, 2025, and 2024, seeking growth through platform innovation and product promotion despite macroeconomic headwinds - Enterprise customer revenue as a percentage of total revenue increased for both the three and six-month periods, reaching **60.0%** (2025) and **58.7%** (2024), and **60.0%** (2025) and **58.5%** (2024), respectively[99](index=99&type=chunk) Enterprise Customer Net Dollar Expansion Rate | Metric | July 31, 2025 | July 31, 2024 | | :--- | :--- | :--- | | Net Dollar Expansion Rate for Trailing 12 Months | 98% | 98% | - The company seeks future growth from existing customers through platform innovation and AI applications, as well as promoting products like Zoom Phone, Zoom Contact Center, and Workvivo[98](index=98&type=chunk) [Retention of Online Customers](index=26&type=section&id=Retention%20of%20Online%20Customers) Online customer revenue as a percentage of total revenue decreased for both the three and six-month periods, while the average monthly churn rate remained stable or slightly decreased, and long-term online customers consistently contributed to online Monthly Recurring Revenue (MRR) Online Customer Revenue Percentage | Period | July 31, 2025 | July 31, 2024 | | :--- | :--- | :--- | | 3 months | 40.0% | 41.3% | | 6 months | 40.0% | 41.5% | Online Customer Average Monthly Churn Rate | Period | July 31, 2025 | July 31, 2024 | | :--- | :--- | :--- | | 3 months | 2.9% | 2.9% | | 6 months | 2.9% | 3.1% | - As of July 31, 2025, online customers with at least 16 months of service contributed **74.9%** to total online MRR, slightly higher than **74.4%** in 2024[100](index=100&type=chunk) [Innovation and Expansion of Our Platform](index=26&type=section&id=Innovation%20and%20Expansion%20of%20Our%20Platform) The company continuously invests in enhancing Zoom Workplace and Zoom Business Services, particularly in AI, launching new products and features like Zoom AI Companion, Zoom Docs, and Zoom Tasks, while expanding Zoom Phone and emphasizing an open platform strategy with End-to-End Encryption (E2EE) - Continuous investment in AI, with a focus on expanding agent AI skills, agents, and models[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk) - Launch of new products and enhancements, including Zoom AI Companion, Zoom Docs, Zoom Tasks, and ongoing improvements to Phone, Meetings, Zoom Rooms, Sessions, Webinars, Events, Workvivo, and Contact Center[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk) - Zoom Phone calling plans are available in over **45** countries and territories[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk) - Introduction of the next-generation Zoom Virtual Agent, leveraging agent AI to autonomously resolve customer support issues and integrate with platforms like Zoom Contact Center[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk) - Zoom is an open platform, encouraging third-party developers to expand the product portfolio through integrations with major third-party applications, aiming to become a ubiquitous communication and collaboration platform[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk) - Provides End-to-End Encryption (E2EE) for meetings with up to **1,000** participants and one-on-one Zoom Phone calls within the same account[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk) - Launched post-quantum E2EE in **May 2024**, making it the first Unified Communications as a Service (UCaaS) provider to offer a post-quantum E2EE solution for video conferencing[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk) [International Opportunity](index=27&type=section&id=International%20Opportunity) International markets represent a significant long-term growth opportunity, with APAC and EMEA revenues consistently contributing around **28%** of total revenue, despite challenges in international expansion International Revenue Percentage (APAC and EMEA) | Period | July 31, 2025 | July 31, 2024 | | :--- | :--- | :--- | | 3 months | 28.2% | 28.1% | | 6 months | 28.0% | 28.2% | - The company sells in international markets through strategic partners and resellers, but international expansion faces challenges such as multilingual, multicultural, legal, regulatory, and economic risks[107](index=107&type=chunk) [Key Business Metric](index=27&type=section&id=Key%20Business%20Metric) The company tracks customers contributing over **$100,000** in annual revenue to gauge large organization penetration; as of July 31, 2025, these customers totaled **4,274**, an **8.7%** increase year-over-year, contributing **32.2%** of total revenue Customers with TTM Revenue of Over $100,000 and Revenue Contribution | Metric | July 31, 2025 | July 31, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Number of Customers | 4,274 | 3,933 | 8.7% | | Revenue Contribution Percentage (3 months) | 32.2% | 30.5% | 1.7pp | | Revenue Contribution Percentage (6 months) | 32.2% | 30.4% | 1.8pp | [Non-GAAP Financial Measure](index=27&type=section&id=Non-GAAP%20Financial%20Measure) The company uses Free Cash Flow (FCF) as a non-GAAP liquidity metric, defined as net cash provided by operating activities less purchases of property and equipment; for the six months ended July 31, 2025, FCF was **$971 million**, a **3.9%** increase year-over-year - Free Cash Flow (FCF) is defined as GAAP net cash provided by operating activities less purchases of property and equipment[111](index=111&type=chunk) Free Cash Flow (Non-GAAP) (Units: $ thousand) | Metric | July 31, 2025 (6 months) | July 31, 2024 (6 months) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $1,005,201 | $1,037,525 | -3.1% | | Less: Purchases of property and equipment | $(33,876) | $(102,742) | -67.0% | | **Free Cash Flow (Non-GAAP)** | **$971,325** | **$934,783** | **3.9%** | [Components of Results of Operations](index=28&type=section&id=Components%20of%20Results%20of%20Operations) This section details the components of the company's operating results, including revenue, cost of revenue, operating expenses (R&D, sales and marketing, G&A), net gain on strategic investments, other income, and income tax expense - Revenue primarily derives from customer subscriptions to the unified communications and collaboration platform, as well as professional services, consulting services, and online event hosting[114](index=114&type=chunk) - Cost of revenue mainly includes data center, third-party cloud hosting, PSTN services, personnel-related expenses, capitalized software development and intangible asset amortization, royalties, and allocated overhead[115](index=115&type=chunk) - Operating expenses include research and development (personnel-related expenses, equipment depreciation), sales and marketing (personnel-related expenses, advertising, promotions, credit card processing fees, amortization of deferred contract acquisition costs), and general and administrative (personnel-related expenses, professional service fees, allowance for credit losses, litigation, and regulatory expenses)[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk) - Net gain on strategic investments primarily includes revaluation gains and losses on equity investments; other income, net, mainly includes interest income and net appreciation from marketable securities and the impact of foreign exchange rate changes[119](index=119&type=chunk)[120](index=120&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) This section provides a detailed comparison of operating results for the three and six months ended July 31, 2025, covering revenue, cost of revenue, gross profit, operating expenses, strategic investment gains, other income, and income tax expense [Comparison of the Three Months Ended July 31, 2025 and 2024](index=31&type=section&id=Comparison%20of%20the%20Three%20Months%20Ended%20July%2031,%202025%20and%202024) For the three months ended July 31, 2025, revenue grew **4.7%** to **$1.217 billion**, cost of revenue decreased **4.2%**, and gross margin improved to **77.6%**, while operating expenses declined, and net gain on strategic investments significantly increased Three Months Operating Results Key Data (Units: $ thousand) | Metric | July 31, 2025 | July 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $1,217,227 | $1,162,520 | 4.7% | | Cost of revenue | $273,165 | $285,089 | (4.2)% | | Gross Profit | $944,062 | $877,431 | 7.6% | | Gross Margin | 77.6% | 75.5% | 2.1pp | | Research and development expenses | $206,447 | $206,756 | (0.1)% | | Sales and marketing expenses | $338,995 | $358,770 | (5.5)% | | General and administrative expenses | $76,885 | $109,535 | (29.8)% | | Net gain on strategic investments | $45,056 | $3,107 | 1350.1% | | Other income, net | $81,371 | $87,412 | (6.9)% | | Income tax expense | $89,570 | $73,874 | 21.2% | - Revenue growth was primarily driven by a **7.0%** increase in enterprise customer revenue, with **57.4%** from new customers and **42.6%** from existing customers, and a **1.4%** increase in online customer revenue[123](index=123&type=chunk) - General and administrative expenses significantly decreased by **29.8%**, mainly due to the reversal of **$18 million** in accrued expenses related to the SEC investigation and reduced personnel-related expenses, including stock-based compensation[129](index=129&type=chunk) [Comparison of the Six Months Ended July 31, 2025 and 2024](index=33&type=section&id=Comparison%20of%20the%20Six%20Months%20Ended%20July%2031,%202025%20and%202024) For the six months ended July 31, 2025, revenue grew **3.8%** to **$2.392 billion**, cost of revenue decreased **1.2%**, and gross margin improved to **76.9%**, while operating expenses declined, and net gain on strategic investments increased **53.6%** Six Months Operating Results Key Data (Units: $ thousand) | Metric | July 31, 2025 | July 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $2,391,942 | $2,303,754 | 3.8% | | Cost of revenue | $551,567 | $558,391 | (1.2)% | | Gross Profit | $1,840,375 | $1,745,363 | 5.4% | | Gross Margin | 76.9% | 75.8% | 1.1pp | | Research and development expenses | $411,863 | $412,314 | (0.1)% | | Sales and marketing expenses | $685,965 | $706,778 | (2.9)% | | General and administrative expenses | $179,220 | $220,879 | (18.9)% | | Net gain on strategic investments | $31,437 | $20,461 | 53.6% | | Other income, net | $169,163 | $159,000 | 6.4% | | Income tax expense | $150,732 | $149,530 | 0.8% | - Revenue growth was primarily driven by a **6.4%** increase in enterprise customer revenue, with **53.6%** from new customers and **46.4%** from existing customers, while online customer revenue remained flat year-over-year[133](index=133&type=chunk) - Other income, net, increased by **6.4%**, primarily due to a **$13 million** increase from foreign exchange rate changes, partially offset by a **$3.3 million** decrease in investment income from cash and marketable securities[141](index=141&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) As of July 31, 2025, the company held **$7.8 billion** in cash, cash equivalents, and marketable securities, primarily for working capital and growth investments, expecting sufficient liquidity for the next 12 months, and reiterating its stock repurchase program - As of July 31, 2025, the company held **$7.8 billion** in cash, cash equivalents, and marketable securities, primarily for working capital and growth investments[143](index=143&type=chunk) - The company expects its existing cash, cash equivalents, and marketable securities, combined with net cash provided by operating activities, to be sufficient to meet funding needs for at least the next **12 months**[145](index=145&type=chunk) Cash Flow Summary (Units: $ thousand) | Cash Flow Type | July 31, 2025 (6 months) | July 31, 2024 (6 months) | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,005,201 | $1,037,525 | | Net cash used in investing activities | $(185,803) | $(648,734) | | Net cash used in financing activities | $(985,392) | $(398,716) | - Net cash provided by operating activities for the six months ended July 31, 2025, was **$1.0052 billion**, a slight decrease from the prior year, mainly due to timing differences in working capital account payments[149](index=149&type=chunk) - Net cash used in investing activities significantly decreased, primarily due to lower net purchases of marketable securities and decreased purchases of property and equipment[150](index=150&type=chunk)[151](index=151&type=chunk) - Net cash used in financing activities significantly increased, mainly due to higher stock repurchase expenditures (**$883.3 million**) and tax payments related to net settlement of equity awards (**$137.5 million**)[152](index=152&type=chunk)[153](index=153&type=chunk) - The company's Board of Directors has authorized a total of **$2.7 billion** for Class A common stock repurchases; as of July 31, 2025, **$881.4 million** has been repurchased, with **$724.7 million** remaining authorized for repurchase[154](index=154&type=chunk)[156](index=156&type=chunk) [Critical Accounting Estimates](index=36&type=section&id=Critical%20Accounting%20Estimates) There were no significant changes to the company's critical accounting estimates during this reporting period compared to those disclosed in the annual report as of January 31, 2025 - There were no significant changes to the company's critical accounting estimates during this reporting period compared to those disclosed in the annual report as of January 31, 2025[158](index=158&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces foreign currency and interest rate risks; while most revenue is USD-denominated, international operations expose it to foreign exchange fluctuations, though historical impact has been immaterial, and short-term investments limit interest rate risk [Foreign Currency and Exchange Risk](index=36&type=section&id=Foreign%20Currency%20and%20Exchange%20Risk) Most of the company's revenue is USD-denominated, but a portion of revenue and expenses are in non-USD currencies, exposing it to foreign exchange fluctuations; a hypothetical **10%** change in exchange rates has not had a material impact historically, and the company currently does not hedge - For the six months ended July 31, 2025, **19.6%** of the company's revenue and **17.5%** of its expenses were denominated in non-USD currencies[159](index=159&type=chunk) - A hypothetical **10%** change in foreign exchange rates has not had a material impact on the company's historical condensed consolidated financial statements[159](index=159&type=chunk) - The company currently does not engage in foreign currency hedging but may consider it in the future based on changes in exposure[159](index=159&type=chunk) [Interest Rate Risk](index=36&type=section&id=Interest%20Rate%20Risk) As of July 31, 2025, the company held **$1.199 billion** in cash and cash equivalents and **$6.580 billion** in marketable securities; these short-term investments, primarily for working capital, result in immaterial interest rate risk exposure - As of July 31, 2025, the company held **$1.1986 billion** in cash and cash equivalents and **$6.5801 billion** in marketable securities[160](index=160&type=chunk) - The company's primary investment objectives are capital preservation and maximizing returns, without engaging in trading or speculative activities[160](index=160&type=chunk) - Due to the short-term nature of its investments, the company does not face significant interest rate change risk, and a hypothetical **10%** change in interest rates has not had a material impact on historical financial statements[160](index=160&type=chunk)[161](index=161&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management assessed the company's disclosure controls and procedures as effective at a reasonable assurance level as of July 31, 2025, with no material changes to internal controls during the quarter, acknowledging inherent limitations in all control systems - As of July 31, 2025, the company's management, including the Chief Executive Officer and Chief Financial Officer, assessed its disclosure controls and procedures as effective[162](index=162&type=chunk) - There were no material changes in internal controls reported for the quarter ended July 31, 2025[163](index=163&type=chunk) - Management acknowledges that any control system has inherent limitations and cannot prevent all errors and fraud, providing reasonable rather than absolute assurance[164](index=164&type=chunk) [PART II – Other Information](index=38&type=section&id=PART%20II%20%E2%80%93%20Other%20Information) This section provides additional information not covered in the financial statements, including legal proceedings, risk factors, equity security sales, defaults, and exhibits [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to the detailed information on legal proceedings, including Department of Justice and SEC investigations and shareholder lawsuits, found in Note 6 to the financial statements - Legal proceedings information can be found in Note 6, "Commitments and Contingencies," to the financial statements[167](index=167&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) Investing in the company's securities involves high risk, and this section details various risks related to the business, industry, legal and regulatory environment, intellectual property, and Class A common stock ownership, which could materially adversely affect the company's business, financial condition, and operating results [Risks Related to Our Business and Our Industry](index=38&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Our%20Industry) The company faces business and industry risks including customer acquisition and retention challenges, revenue growth volatility, service disruptions, intense market competition, macroeconomic impacts, and uncertainties regarding profitability and technology adaptation - The company's business depends on attracting new customers, upselling to existing customers, and converting free users to paid users; any decline will harm the business[169](index=169&type=chunk)[172](index=172&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[185](index=185&type=chunk)[187](index=187&type=chunk)[194](index=194&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[200](index=200&type=chunk)[206](index=206&type=chunk)[225](index=225&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk)[237](index=237&type=chunk)[245](index=245&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk)[251](index=251&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk)[263](index=263&type=chunk)[265](index=265&type=chunk)[267](index=267&type=chunk] - Revenue growth rates have fluctuated in the past and may continue to decline in the future[169](index=169&type=chunk)[172](index=172&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[185](index=185&type=chunk)[187](index=187&type=chunk)[194](index=194&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[200](index=200&type=chunk)[206](index=206&type=chunk)[225](index=225&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk)[237](index=237&type=chunk)[245](index=245&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk)[251](index=251&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk)[263](index=263&type=chunk)[265](index=265&type=chunk)[267](index=267&type=chunk] - Interruptions, delays, or failures in data center or cloud hosting services could harm service delivery and potentially lead to company liability[169](index=169&type=chunk)[172](index=172&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[185](index=185&type=chunk)[187](index=187&type=chunk)[194](index=194&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[200](index=200&type=chunk)[206](index=206&type=chunk)[225](index=225&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk)[237](index=237&type=chunk)[245](index=245&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk)[251](index=251&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk)[263](index=263&type=chunk)[265](index=265&type=chunk)[267](index=267&type=chunk] - The company operates in a highly competitive market, facing challenges from competitors with greater brand recognition, longer operating histories, and more resources[169](index=169&type=chunk)[172](index=172&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[185](index=185&type=chunk)[187](index=187&type=chunk)[194](index=194&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[200](index=200&type=chunk)[206](index=206&type=chunk)[225](index=225&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk)[237](index=237&type=chunk)[245](index=245&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk)[251](index=251&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk)[263](index=263&type=chunk)[265](index=265&type=chunk)[267](index=267&type=chunk] - Macroeconomic changes, such as shifts in consumer or business spending, could significantly impact the company's business[169](index=169&type=chunk)[172](index=172&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[185](index=185&type=chunk)[187](index=187&type=chunk)[194](index=194&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[200](index=200&type=chunk)[206](index=206&type=chunk)[225](index=225&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk)[237](index=237&type=chunk)[245](index=245&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk)[251](index=251&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk)[263](index=263&type=chunk)[265](index=265&type=chunk)[267](index=267&type=chunk] - Selling to large organizations may lead to longer sales cycles and deployment challenges[169](index=169&type=chunk)[172](index=172&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[185](index=185&type=chunk)[187](index=187&type=chunk)[194](index=194&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[200](index=200&type=chunk)[206](index=206&type=chunk)[225](index=225&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk)[237](index=237&type=chunk)[245](index=245&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk)[251](index=251&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk)[263](index=263&type=chunk)[265](index=265&type=chunk)[267](index=267&type=chunk] - Revenue is derived from platform subscription sales, and a decrease in demand for the platform or communication collaboration technology will harm the business[169](index=169&type=chunk)[172](index=172&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[185](index=185&type=chunk)[187](index=187&type=chunk)[194](index=194&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[200](index=200&type=chunk)[206](index=206&type=chunk)[225](index=225&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk)[237](index=237&type=chunk)[245](index=245&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk)[251](index=251&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk)[263](index=263&type=chunk)[265](index=265&type=chunk)[267](index=267&type=chunk] - The company has incurred net losses in the past, and there is no guarantee it can maintain or increase profitability in the future[169](index=169&type=chunk)[172](index=172&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[185](index=185&type=chunk)[187](index=187&type=chunk)[194](index=194&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[200](index=200&type=chunk)[206](index=206&type=chunk)[225](index=225&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk)[237](index=237&type=chunk)[245](index=245&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk)[251](index=251&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk)[263](index=263&type=chunk)[265](index=265&type=chunk)[267](index=267&type=chunk] - The company may be unable to adapt to rapid technological changes, scale its platform, or develop new features[169](index=169&type=chunk)[172](index=172&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[185](index=185&type=chunk)[187](index=187&type=chunk)[194](index=194&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[200](index=200&type=chunk)[206](index=206&type=chunk)[225](index=225&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk)[237](index=237&type=chunk)[245](index=245&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk)[251](index=251&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk)[263](index=263&type=chunk)[265](index=265&type=chunk)[267](index=267&type=chunk] - Security measures have been breached in the past and may occur again, potentially harming reputation, leading to significant fines and liabilities, and impacting sales[169](index=169&type=chunk)[172](index=172&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[185](index=185&type=chunk)[187](index=187&type=chunk)[194](index=194&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[200](index=200&type=chunk)[206](index=206&type=chunk)[225](index=225&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk)[237](index=237&type=chunk)[245](index=245&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk)[251](index=251&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk)[263](index=263&type=chunk)[265](index=265&type=chunk)[267](index=267&type=chunk] - The company has a limited operating history at its current business scale, making it difficult to evaluate prospects and future operating results[169](index=169&type=chunk)[172](index=172&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[185](index=185&type=chunk)[187](index=187&type=chunk)[194](index=194&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[200](index=200&type=chunk)[206](index=206&type=chunk)[225](index=225&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk)[237](index=237&type=chunk)[245](index=245&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk)[251](index=251&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk)[263](index=263&type=chunk)[265](index=265&type=chunk)[267](index=267&type=chunk] - Failure to comply with privacy, data protection, and information security laws and regulations could harm reputation and business, or lead to significant fines and liabilities[169](index=169&type=chunk)[172](index=172&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[185](index=185&type=chunk)[187](index=187&type=chunk)[194](index=194&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[200](index=200&type=chunk)[206](index=206&type=chunk)[225](index=225&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk)[237](index=237&type=chunk)[245](index=245&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk)[251](index=251&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk)[263](index=263&type=chunk)[265](index=265&type=chunk)[267](index=267&type=chunk] - Loss of the CEO or other senior management team members could hinder the execution of business strategy[169](index=169&type=chunk)[172](index=172&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[185](index=185&type=chunk)[187](index=187&type=chunk)[194](index=194&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[200](index=200&type=chunk)[206](index=206&type=chunk)[225](index=225&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk)[237](index=237&type=chunk)[245](index=245&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk)[251](index=251&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk)[263](index=263&type=chunk)[265](index=265&type=chunk)[267](index=267&type=chunk] - International business expansion presents business, regulatory, and economic risks[169](index=169&type=chunk)[172](index=172&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[185](index=185&type=chunk)[187](index=187&type=chunk)[194](index=194&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[200](index=200&type=chunk)[206](index=206&type=chunk)[225](index=225&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk)[237](index=237&type=chunk)[245](index=245&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk)[251](index=251&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk)[263](index=263&type=chunk)[265](index=265&type=chunk)[267](index=267&type=chunk] - The company may face lawsuits or enforcement requests under U.S. and international laws, increasing operating costs or harming the business[169](index=169&type=chunk)[172](index=172&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[185](index=185&type=chunk)[187](index=187&type=chunk)[194](index=194&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[200](index=200&type=chunk)[206](index=206&type=chunk)[225](index=225&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk)[237](index=237&type=chunk)[245](index=245&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk)[251](index=251&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk)[263](index=263&type=chunk)[265](index=265&type=chunk)[267](index=267&type=chunk] - Certain products, such as Zoom Phone, are subject to U.S. federal and international regulations, and non-compliance could harm the business and incur liabilities[169](index=169&type=chunk)[172](index=172&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[185](index=185&type=chunk)[187](index=187&type=chunk)[194](index=194&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[200](index=200&type=chunk)[206](index=206&type=chunk)[225](index=225&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk)[237](index=237&type=chunk)[245](index=245&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk)[251](index=251&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk)[263](index=263&type=chunk)[265](index=265&type=chunk)[267](index=267&type=chunk] - The use of generative AI in products and services may lead to

Core Insights - Zoom Communications Inc. reported better-than-expected second-quarter financial results, with revenue of $1.22 billion and adjusted earnings of $1.53 per share, surpassing analyst estimates [1][2] - The company raised its full-year guidance, expecting revenue between $4.825 billion and $4.835 billion and earnings per share between $5.81 and $5.84, both above market estimates [3] Financial Performance - Second-quarter revenue: $1.22 billion, exceeding consensus estimate of $1.20 billion [1] - Second-quarter adjusted earnings: $1.53 per share, beating analyst estimates of $1.37 per share [1] - Third-quarter revenue guidance: $1.21 billion to $1.215 billion, compared to estimates of $1.211 billion [2] - Third-quarter adjusted earnings guidance: $1.42 to $1.44 per share, versus estimates of $1.39 per share [2] - Full-year revenue guidance: $4.825 billion to $4.835 billion, against estimates of $4.81 billion [3] - Full-year earnings guidance: $5.81 to $5.84 per share, compared to estimates of $5.58 per share [3] Market Reaction - Following the earnings announcement, Zoom shares increased by 12.5%, reaching $82.29 [3] Analyst Ratings - Rosenblatt analyst maintained a Buy rating and raised the price target from $100 to $110 [8] - Keybanc analyst maintained an Underweight rating and lowered the price target from $73 to $69 [8] - RBC Capital analyst maintained an Outperform rating and raised the price target from $95 to $100 [8] - Baird analyst maintained an Outperform rating and lowered the price target from $100 to $95 [8]