Zoom Communications Inc. ZM reported stronger-than-expected earnings for its first quarter after Wednesday's closing bell.Zoom reported quarterly earnings of $1.43 per share which beat the analyst consensus estimate of $1.31. Quarterly revenue came in at $1.17 billion which met the Street estimate."We delivered another solid quarter, exceeding guidance in both revenue and profitability — a testament to the strength of our platform and AI-first innovation," said Eric S. Yuan, Zoom's CEO. "In an uncertain mac ...

Core Insights - Zoom Communications reported revenue of $1.17 billion for the quarter ended April 2025, reflecting a year-over-year increase of 2.9% and a surprise of +0.89% over the Zacks Consensus Estimate of $1.16 billion [1] - The earnings per share (EPS) for the quarter was $1.43, surpassing the previous year's $1.35 and exceeding the consensus EPS estimate of $1.30 by +10.00% [1] Financial Performance Metrics - Zoom's shares have returned +15.8% over the past month, outperforming the Zacks S&P 500 composite's +12.7% change [3] - The company has 182,600 enterprise customers, which is below the average estimate of 193,166 [4] - Customers generating over $100K in trailing twelve months (TTM) revenue totaled 4,192, slightly above the average estimate of 4,155 [4] - Current Remaining Performance Obligation (RPO) stands at $2.36 billion, exceeding the average estimate of $2.33 billion [4] - Total Remaining Performance Obligations (RPO) is $3.88 billion, slightly above the average estimate of $3.86 billion [4] - Non-Current Remaining Performance Obligation (RPO) is $1.52 billion, marginally above the average estimate of $1.51 billion [4] Geographic Revenue Breakdown - Revenue from the Americas reached $848 million, surpassing the average estimate of $838.48 million, with a year-over-year change of +3.5% [4] - Revenue from Europe, the Middle East, and Africa (EMEA) was $185 million, slightly above the average estimate of $184.58 million, reflecting a +0.5% change year-over-year [4] - Revenue from the Asia Pacific (APAC) region was $142 million, just below the average estimate of $143.01 million, with a +2.9% change compared to the previous year [4] - Online revenue was reported at $470 million, slightly below the average estimate of $472.82 million [4] - Enterprise revenue reached $704.70 million, exceeding the average estimate of $689.42 million [4]

Zoom Communications (ZM) came out with quarterly earnings of $1.43 per share, beating the Zacks Consensus Estimate of $1.30 per share. This compares to earnings of $1.35 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10%. A quarter ago, it was expected that this video-conferencing company would post earnings of $1.31 per share when it actually produced earnings of $1.41, delivering a surprise of 7.63%.Over the last four quart ...

Financial Data and Key Metrics Changes - Total revenue for Q1 FY26 grew approximately 3% year over year to $1,175 million, exceeding guidance by $8 million [20] - Enterprise revenue increased approximately 6% year over year, now representing 60% of total revenue, up two points year over year [21] - Non-GAAP gross margin in Q1 was 79.2%, slightly lower than the previous year due to investments in AI [22] - Non-GAAP income from operations grew 2% year over year to $467 million, exceeding guidance by $22 million [24] - Non-GAAP diluted net income per share was $1.43, $0.12 above the high end of guidance [25] - Deferred revenue grew 5% year over year to $1,430 million, in line with guidance [26] - Operating cash flow was $489 million, representing a margin of 41.6% [27] Business Line Data and Key Metrics Changes - Adoption of Zoom AI Companion grew with monthly active users up nearly 40% quarter over quarter [10] - Zoom Phone revenue grew in the mid-teens, opening new markets and integrating with other productivity suites [13] - The number of Zoom contact center customers grew 65% year over year, with Zoom Virtual Agent landing its largest deal to date [14] - Total WorkVivo customer count grew 106% year over year, driven partly by a partnership with Meta [17] Market Data and Key Metrics Changes - Americas revenue grew 4% year over year, EMEA grew 1%, and APAC grew 2% [22] - The customer experience offering has rapidly evolved, with a triple-digit million ARR business growing in high double digits [15] Company Strategy and Development Direction - The company is focused on AI-powered innovation to redefine modern work and deliver cost savings and productivity gains [8] - Zoom is emphasizing a platform approach that unites customer experience and collaboration under one AI-first platform [12] - The company is committed to driving efficiencies and delivering AI capabilities in a scalable, cost-effective way [23] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand across the business, with no significant impact from macroeconomic conditions on online business [47] - The outlook for enterprise business is cautious due to elongating deal cycles and increased scrutiny on deal terms [47] - The company raised its full-year revenue guidance by $15 million, reflecting a more prudent outlook in the enterprise business [28] Other Important Information - The company accelerated its share buyback plan, purchasing 5.6 million shares for $418 million [27] - A new Chief Marketing Officer, Kim Storan, was welcomed to amplify Zoom's value proposition [18] Q&A Session Summary Question: Adoption of Zoom AI Companion in SMB segment - Management noted that the number of active users has significantly increased, with more customers realizing the value of AI Companion [36] Question: Statistics on contact center and cautious outlook on enterprise - Management highlighted that Q1 was the largest quarter for ARR contribution from the contact center, with strong upsell opportunities [44][46] Question: Competitive dynamics in core video meeting solutions - Management indicated that employee preference for Zoom remains high, and the total cost of ownership favors Zoom's offerings [51] Question: Early reception of online monthly pricing increase - Management stated that the pricing increase reflects incremental value delivered to customers, with no significant churn observed [70] Question: Trends in enterprise deal elongation and down sells - Management reported continued low churn rates in both enterprise and online segments, with no significant down sells noted [123] Question: International growth focus - Management emphasized a global strategy, with strong resonance in EMEA for the combined communication and customer experience platform [117]

Financial Data and Key Metrics Changes - Total revenue for Q1 FY26 grew approximately 3% year over year to $1,175 million, exceeding guidance by $8 million [18] - Enterprise revenue increased approximately 6% year over year, now representing 60% of total revenue, up two points year over year [19] - Average monthly churn improved to 2.8%, a 40 basis point improvement year over year, marking the lowest churn rate for Q1 [19] - Non-GAAP gross margin for Q1 was 79.2%, slightly lower than the previous year due to AI investments [20] - Non-GAAP diluted net income per share was $1.43, exceeding guidance by $0.12 and up $0.08 from Q1 of last year [22] - Deferred revenue grew 5% year over year to $1,430 million, in line with the high end of the previously provided range [22] Business Line Data and Key Metrics Changes - Adoption of Zoom AI Companion grew with monthly active users up nearly 40% quarter over quarter [8] - Zoom Phone revenue grew in the mid-teens, indicating strong performance and market expansion [12] - The number of Zoom contact center customers grew 65% year over year, with Zoom Virtual Agent landing its largest deal to date [13] - Total WorkVivo customer count grew 106% year over year, driven partly by a partnership with Meta [15] Market Data and Key Metrics Changes - Americas revenue grew 4% year over year, EMEA grew 1%, and APAC grew 2% [20] - The customer experience offering has rapidly evolved, with a triple-digit million ARR business growing in high double digits [13] Company Strategy and Development Direction - The company is focused on AI-powered innovation to redefine modern work and deliver cost savings and productivity gains [6] - A strategic partnership with Bell Canada was announced, enhancing channel capabilities [16] - The company aims to drive value for customers while navigating an uncertain macro environment, emphasizing an AI-first strategy [17] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand across the business, with no significant impact from macroeconomic conditions on online business [44] - The outlook for enterprise business is cautious due to elongating deal cycles and increased scrutiny on deal terms [44] - The company raised its full-year revenue guidance by $15 million, reflecting increased product value [25] Other Important Information - The company accelerated its share buyback plan, purchasing 5.6 million shares for $418 million, indicating a commitment to delivering shareholder value [24] - The company expects to recognize 61% of total RPO as revenue over the next twelve months, up from 59% in Q1 of last year [23] Q&A Session Summary Question: Adoption of Zoom AI Companion in SMB segment - Management noted that the number of active users has significantly increased, with more customers realizing the value of AI features [31][32] Question: Customer traction with higher price SKUs in contact center - Management highlighted that Q1 was the largest quarter for ARR contribution from the contact center, with many customers opting for elite SKUs due to AI value [40][42] Question: Competitive dynamics in core video meeting solutions - Management emphasized that employee preference for Zoom remains high, and the total cost of ownership is favorable compared to competitors [48][49] Question: Early reception of online monthly pro pricing increase - Management indicated that the pricing increase reflects incremental value delivered to customers, with no significant churn observed [66][67] Question: Trends in enterprise deal elongation and down sells - Management reported continued low churn rates in enterprise and online segments, with no significant down sells noted [114]

Zoom Communications Q1 FY26 Earnings May 21, 2025 © 2025 Zoom Communications, Inc. Use of non-GAAP financial measures In addition to the financials presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this presentation includes the following non-GAAP metrics: Revenue in Constant Currency, non-GAAP gross profit, non-GAAP gross margin, non-GAAP R&D expense, non-GAAP S&M expense, non-GAAP G&A expense, non-GAAP operating margin, non-GAAP income from operations, non-GAAP net incom ...

Revenue Performance - Total revenue for Q1 FY 2026 was $1,174.7 million, representing a year-over-year increase of 2.9%[6] - Enterprise revenue for Q1 FY 2026 reached $704.7 million, up 5.9% year over year[6] - Revenue for the three months ended April 30, 2025, was $1,174,715 thousand, representing a year-over-year growth of 2.9%[30] - Gross profit for the same period was $896,313 thousand, with a gross margin of approximately 76.3%[30] - Full fiscal year 2026 revenue is expected to be between $4.800 billion and $4.810 billion, with non-GAAP diluted EPS projected between $5.56 and $5.59[14] Earnings and Profitability - GAAP EPS for Q1 FY 2026 was $0.81, an increase of 18.7% year over year, while non-GAAP EPS was $1.43, up 6.0% year over year[6] - Basic net income per share increased to $0.84 from $0.70 year-over-year[30] - The company reported a GAAP operating margin of 20.6%, up from 17.8% in the previous year[34] - Non-GAAP net income for the three months ended April 30, 2025, was $448,293 thousand, compared to $426,318 thousand in the prior year[34] Customer Metrics - The number of customers contributing more than $100,000 in trailing 12 months revenue increased by 8.0% year over year, totaling 4,192 customers[5] - The trailing 12-month net dollar expansion rate for Enterprise customers was 98%[14] - Online average monthly churn for Q1 FY 2026 was 2.8%, a decrease of 40 basis points from the same quarter last fiscal year[14] Cash Flow and Financial Position - Net cash provided by operating activities for Q1 FY 2026 was $489.3 million, down from $588.2 million in Q1 FY 2025[7] - Free cash flow for Q1 FY 2026 was $463.4 million, compared to $569.7 million in the same quarter last fiscal year[7] - Total current assets as of April 30, 2025, were $8,666,777 thousand, slightly down from $8,675,974 thousand as of January 31, 2025[28] - Total liabilities decreased to $2,049,528 thousand from $2,053,337 thousand in the previous quarter[28] - Cash flows from operating activities for the three months ended April 30, 2025, were $489,261 thousand, compared to $588,191 thousand in the prior year[32] - Free cash flow (non-GAAP) for the period was $463,351 thousand, down from $569,683 thousand year-over-year[34] Guidance - Guidance for Q2 FY 2026 projects total revenue between $1.195 billion and $1.200 billion, with non-GAAP diluted EPS expected between $1.36 and $1.37[14]

First quarter total revenue of $1,174.7 million, up 2.9% year over year as reported and 3.4% in constant currencyFirst quarter Enterprise revenue of $704.7 million, up 5.9% year over yearFirst quarter GAAP operating margin of 20.6% and non-GAAP operating margin of 39.8%First quarter GAAP EPS of $0.81, up 18.7% year over year, and non-GAAP EPS of $1.43, up 6.0% year over yearNumber of customers contributing more than $100,000 in trailing 12 months revenue up 8.0% year over yearRepurchased approximately 5.6 m ...

Zoom Communications Inc. ZM is set to report its first-quarter earnings after the market closes Wednesday, with Wall Street expecting earnings per share of $1.31 and revenue of $1.17 billion.The stock has climbed 17.5% in the past month, is up 1.5% year to date, but still down 29.7% over the past year. As investors await results, the technical setup for the stock suggests the recent rally may still have room to run – though caution is warranted.Read Also: Zoom Likely To Report Lower Q1 Earnings; These Most ...

Core Viewpoint - Zoom Communications is set to report its first-quarter fiscal 2026 results, with expected revenues between $1.162 billion and $1.167 billion, indicating a 2.03% increase year-over-year [1][2] Revenue Expectations - The Zacks Consensus Estimate for Zoom's first-quarter fiscal 2026 revenues is currently at $1.16 billion, reflecting a 2.03% increase from the previous year's figure [1] - The consensus for earnings per share is $1.30, which represents a 3.70% decrease from the year-ago reported figure [2] Growth Drivers - The expansion of Zoom's AI Companion capabilities, particularly with the launch of AI Companion 2.0, is expected to enhance customer engagement and boost top-line performance [3] - The enterprise segment is anticipated to remain the primary growth driver, with a 6% year-over-year revenue increase in the previous quarter, accounting for 60% of total revenues [4] - The number of customers generating over $100,000 in trailing 12-month revenues grew by 7% year-over-year, with record low churn rates [4] Segment Performance - The Online business segment, which includes SMB and individual customers, is expected to remain flat to slightly down, reflecting stabilization trends [5] - Large deal wins, such as deployments to Amazon and Delta Airlines, are expected to reinforce the platform's appeal to larger clients [5] Margin and Cash Flow Insights - Strategic investments in AI are likely to impact gross margins, but efforts in AI infrastructure optimization are expected to keep operating margins stable near 39% [6] - Free cash flow is anticipated to be affected by timing differences, tax conditions, and changes in interest rates [6] Earnings Prediction Model - According to the Zacks model, Zoom currently has an Earnings ESP of -1.68% and a Zacks Rank of 3, indicating lower odds of an earnings beat [7]