Financial Performance - Revenue for the three months ended April 30, 2024, was $1,141.2 million, representing a 3.2% increase from $1,105.4 million in the same period of 2023[97]. - Net income for the same period was $216.3 million, a significant increase from $15.4 million in the prior year[97]. - Revenue for the three months ended April 30, 2024, was $1,141,234 thousand, representing a 3.2% increase from $1,105,364 thousand in 2023, driven by a 5.3% increase in revenue from Enterprise customers[129]. - Net income for the three months ended April 30, 2024, was $216,308 thousand, compared to $15,444 thousand in 2023, marking a significant increase[128]. - Free cash flow (non-GAAP) for the three months ended April 30, 2024, was $569,683 thousand, an increase of 43.5% from $396,661 thousand in 2023[118]. Customer Segmentation - Revenue from Enterprise customers accounted for 58.3% of total revenue for the three months ended April 30, 2024, compared to 57.2% in 2023[104]. - Revenue from Online customers represented 41.7% of total revenue for the three months ended April 30, 2024, slightly down from 42.8% in 2023[106]. - The company had approximately 191,000 Enterprise customers as of April 30, 2024, down from 215,900 in the previous year due to a transition of lower MRR customers to Online status[114]. - Customers contributing more than $100,000 of trailing 12 months revenue represented 29.9% of total revenue for the three months ended April 30, 2024, up from 28.6% in 2023[115]. Operational Efficiency - Operating expenses decreased to $664,910 thousand in 2024 from $831,675 thousand in 2023, a reduction of 20.0%[128]. - General and administrative expenses decreased by 44.3% to $111,344 thousand in 2024 from $199,900 thousand in 2023, largely due to reduced legal and personnel-related expenses[135]. - Research and development expenses decreased by 1.8% to $205,558 thousand in 2024 from $209,271 thousand in 2023[132]. Cash Flow and Investments - Net cash provided by operating activities was $588.2 million for the three months ended April 30, 2024, an increase of 40.6% compared to $418.5 million for the same period in 2023[145]. - Net cash used in investing activities was $107.8 million for the three months ended April 30, 2024, significantly lower than $480.8 million for the same period in 2023, indicating a reduction in investment expenditures[146][147]. - Net cash used in financing activities was $142.5 million for the three months ended April 30, 2024, compared to $7.0 million for the same period in 2023, primarily due to stock repurchases[148][149]. - The company repurchased 2,400,305 shares of Class A common stock for an aggregate purchase of $150.0 million during the three months ended April 30, 2024[152]. - As of April 30, 2024, $1,350.0 million remains available under the authorized stock repurchase program of up to $1.5 billion[150]. Foreign Currency Exposure - For the three months ended April 30, 2024, 19.4% of revenue and 15.6% of expenses were denominated in currencies other than the U.S. dollar, indicating exposure to foreign currency risk[155]. - The company has not entered into derivative or hedging transactions for foreign currency exposure but may consider them in the future if necessary[155]. - A hypothetical 10% change in foreign currency exchange rates would not have had a material impact on the financial statements for the three months ended April 30, 2024 and 2023[155]. Strategic Investments - Gains on strategic investments, net, increased by 662.8% to $17,354 thousand in 2024 from $2,275 thousand in 2023[136]. - Other income, net, rose by 129.4% to $71,588 thousand in 2024 from $31,213 thousand in 2023, primarily due to increased investment yield[137]. - The primary objective of the company's investment activities is to preserve principal while maximizing income without significantly increasing risk[156]. AI and Innovation - The company continues to invest in AI, focusing on enhancing individual productivity, collaboration, and customer engagement[93]. Geographic Revenue Distribution - Revenue from the rest of the world (APAC and EMEA) accounted for 28.3% of total revenue for the three months ended April 30, 2024, slightly down from 29.0% in 2023[112].

Key Points After reporting its first quarter 2024 earnings report, shares of Zoom Video Communications Inc. NASDAQ: ZM shook markets by initially plummeting as much as 4.6% from their closing price and swiftly rising back to show a 2.5% premium to the day's end. To put this price action simply, a significant amount of buying orders could have come in as Zoom stock hit its bottom in the after-hours. While nothing regarding price action can be taken as fact, investors can dig into the quarter's actual results ...

Zoom's (ZM) first-quarter fiscal 2025 adjusted earnings of $1.35 per share beat the Zacks Consensus Estimate by 13.45% and increased 16.4% year over year. Revenues of $1.14 billion beat the consensus mark by 1.41% and increased 3.3% year over year on strong growth from Enterprise customers. Adjusting for foreign currency impact, revenues in constant currency were $1,143.6 million, up 3.5% year over year. Revenues increased 4% in America and 2% in EMEA, while international market revenues from APAC decreased ...

Zoom is making a bet that artificial intelligence will be the key to driving growth and expanding its business beyond video conferencing. The video communications company's first-quarter earnings call was dominated by discussions of AI, with executives highlighting Zoom's significant investments in the technology and the early success of its new AI-powered offerings. Leading the charge is Zoom Workplace, a comprehensive collaboration platform infused with AI capabilities that launched in March. The platform ...

SAN JOSE, Calif., May 21, 2024 (GLOBE NEWSWIRE) -- Today, Zoom Video Communications, Inc. (NASDAQ:ZM) announced that post-quantum end-to-end encryption (E2EE) is now globally available for Zoom Workplace, specifically Zoom Meetings, with Zoom Phone and Zoom Rooms coming soon. The launch of the new security enhancement makes Zoom the first UCaaS company to offer a post-quantum E2EE solution for video conferencing. About Zoom Zoom's mission is to provide one platform that delivers limitless human connection. ...

Zoom Video Communications, Inc. (NASDAQ:ZM) Q1 2025 Earnings Conference Call May 20, 2024 5:00 PM ET Company Participants Charles Eveslage - Head of IR Eric Yuan - Founder & CEO Kelly Steckelberg - CFO Conference Call Participants Meta Marshall - Morgan Stanley Samad Samana - Jefferies Michael Funk - Bank of America Rishi Jaluria - RBC Capital Markets Siti Panigrahi - Mizuho Catharine Trebnick - Rosenblatt Securities Ryan MacWilliams - Barclays William Power - Robert Baird Tyler Radke - Citigroup Alex Zukin ...

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here i ...

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SAN JOSE, Calif., May 20, 2024 (GLOBE NEWSWIRE) -- Zoom Video Communications, Inc. (NASDAQ: ZM), today announced financial results for the first fiscal quarter ended April 30, 2024. "In Q1, we continued to integrate AI across our platform including Zoom Contact Center and Zoom Workplace, our AI-powered collaboration platform that provides customers the ability to reimagine teamwork by streamlining communications, increasing employee engagement, and improving productivity within their organizations," said Er ...

[Q1 FY2025 Financial Performance and Outlook](index=1&type=section&id=Zoom%20Video%20Communications%20Reports%20Financial%20Results%20for%20the%20First%20Quarter%20of%20Fiscal%20Year%202025) This section provides an overview of Zoom's financial performance in Q1 FY2025 and its outlook for the remainder of fiscal year 2025 [Q1 FY2025 Financial Highlights](index=1&type=section&id=First%20Quarter%20Fiscal%20Year%202025%20Financial%20Highlights) Zoom reported strong Q1 FY2025 results with $1.14 billion revenue, significant profitability, and robust cash flow driven by AI innovations - CEO Eric S. Yuan attributes the strong performance to the integration of AI across the platform, including Zoom Contact Center and Zoom Workplace, which has streamlined communications and improved productivity[3](index=3&type=chunk) Q1 FY2025 Key Financial Metrics (YoY) | Metric | Q1 FY2025 | YoY Change | | :--- | :--- | :--- | | Total Revenue | $1,141.2 million | +3.2% | | Enterprise Revenue | $665.7 million | +5.3% | | Online Revenue | $475.5 million | Flat | | GAAP Operating Margin | 17.8% | Up from 0.9% | | Non-GAAP Operating Margin | 40.0% | Up from 38.2% | | Non-GAAP Net Income per Share | $1.35 | Up from $1.16 | | Operating Cash Flow | $588.2 million | +40.6% | | Free Cash Flow | $569.7 million | +43.6% | - The company repurchased approximately **2.4 million** shares of common stock during the quarter[6](index=6&type=chunk) [Q1 FY2025 Customer Metrics](index=1&type=section&id=Customer%20Metrics) Zoom's customer base grew, with an 8.5% increase in large customers and a 99% Enterprise net dollar expansion rate - The number of customers contributing more than **$100,000** in trailing 12 months revenue grew to **3,883**, an increase of approximately **8.5% YoY**[7](index=7&type=chunk) - The company had approximately **191,000 Enterprise customers**, with about **26,800** smaller Enterprise customers transitioned to the Online channel without material revenue impact[7](index=7&type=chunk)[8](index=8&type=chunk) Key Customer Operating Metrics | Metric | Q1 FY2025 | YoY Change | | :--- | :--- | :--- | | Enterprise Net Dollar Expansion Rate (TTM) | 99% | Not specified | | Online Average Monthly Churn | 3.2% | Up 10 bps | [FY2025 Financial Outlook](index=2&type=section&id=Financial%20Outlook) Zoom projects FY2025 total revenue between $4.61 billion and $4.62 billion, with non-GAAP diluted EPS of $4.99 to $5.02 Q2 Fiscal Year 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Total Revenue | $1.145 billion - $1.150 billion | | Non-GAAP Income from Operations | $415.0 million - $420.0 million | | Non-GAAP Diluted EPS | $1.20 - $1.21 | Full Fiscal Year 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Total Revenue | $4.610 billion - $4.620 billion | | Non-GAAP Income from Operations | $1.740 billion - $1.750 billion | | Non-GAAP Diluted EPS | $4.99 - $5.02 | - The financial outlook does not include the impact from the remaining **$1.35 billion** authorized for share repurchases as of April 30, 2024[10](index=10&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements present Zoom's strong financial position, including $7.4 billion in cash and robust operating cash flow [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet highlights Zoom's strong liquidity with over $7.3 billion in cash and marketable securities Balance Sheet Summary (as of April 30, 2024) | Account | Amount (in thousands) | | :--- | :--- | | **Assets** | | | Cash, cash equivalents, and marketable securities | $7,374,340 | | Total current assets | $8,282,045 | | Total assets | $10,296,630 | | **Liabilities & Equity** | | | Total current liabilities | $1,855,901 | | Total liabilities | $1,997,806 | | Total stockholders' equity | $8,298,824 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The income statement shows Q1 FY2025 revenue of $1.14 billion and GAAP net income of $216.3 million Income Statement Summary (for the three months ended April 30, 2024) | Account | Amount (in thousands) | | :--- | :--- | | Revenue | $1,141,234 | | Gross Profit | $867,932 | | Income from operations | $203,022 | | Net income | $216,308 | | Diluted net income per share | $0.69 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The cash flow statement indicates robust operating cash flow of $588.2 million for the quarter Cash Flow Summary (for the three months ended April 30, 2024) | Activity | Amount (in thousands) | | :--- | :--- | | Net cash provided by operating activities | $588,191 | | Net cash used in investing activities | $(107,824) | | Net cash (used in) financing activities | $(142,451) | | Net increase in cash, cash equivalents, and restricted cash | $331,064 | [Reconciliation of GAAP to Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Non-GAAP adjustments for Q1 FY2025, primarily stock-based compensation, resulted in higher operating income and net income Key GAAP to Non-GAAP Reconciliations (Q1 FY2025, in thousands) | Reconciliation | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | **Income from Operations** | $203,022 | $253,575 | $456,597 | | **Net Income** | $216,308 | $210,010 | $426,318 | | **Free Cash Flow** | | | | | Net cash from operating activities | $588,191 | | | | Less: Purchases of property and equipment | ($18,508) | | | | Free cash flow | | | $569,683 | - The largest adjustment in reconciling GAAP to non-GAAP income is stock-based compensation expense and related payroll taxes, totaling **$242.9 million** for the quarter[35](index=35&type=chunk)