Zoom’s (ZM) fourth-quarter fiscal 2025 adjusted earnings of $1.41 per share beat the Zacks Consensus Estimate by 7.63% but decreased 0.7% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Zoom’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average earnings surprise being 10.33%.Revenues of $1.184 billion beat the consensus mark by 0.50% and increased 3.29% year over year. Adjusting for foreign currency impact, revenues in constant ...

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Here's our initial take on Zoom Communications' (ZM -1.70%) fiscal year 2025 fourth-quarter results.Key MetricsMetricQ4 FY24Q4 FY25Changevs. ExpectationsRevenue$1.15 billion$1.18 billion+3%BeatEarnings per share (adjusted)$1.42$1.41-1%BeatOperating cash flow$351.2 million$424.6 million+21%n/aEnterprise customer net dollar expansion rate101%98%-300 BPSn/aWeak growth, customer churn have changed the storyZoom's growth problems in recent quarters continued through the end of fiscal 2025 (ended Jan. 31, 2025). ...

Zoom Communications Inc. (NASDAQ:ZM) Q4 2025 Earnings Conference Call February 24, 2025 5:00 PM ET Company Participants Charles Eveslage - Head of Investor Relations Eric Yuan - Founder and Chief Executive Officer Michelle Chang - Chief Financial Officer Conference Call Participants Kash Rangan - Goldman Sachs Samad Samana - Jefferies Ryan MacWilliams - Barclays Meta Marshall - Morgan Stanley Alex Zukin - Wolfe Research Peter Levine - Evercore Mark Murphy - JPMorgan Michael Turrin - Wells Fargo Arjun Bhatia ...

Core Insights - Zoom Communications reported revenue of $1.18 billion for the quarter ended January 2025, reflecting a year-over-year increase of 3.3% [1] - The earnings per share (EPS) for the quarter was $1.41, slightly down from $1.42 in the same quarter last year [1] - The reported revenue met the Zacks Consensus Estimate, showing a surprise of +0.50%, while the EPS exceeded expectations by +7.63% [1] Financial Performance Metrics - Zoom's shares have returned +2.9% over the past month, outperforming the Zacks S&P 500 composite, which declined by -0.5% [3] - The company has 192,600 enterprise customers, slightly below the average estimate of 196,933 [4] - Customers generating over $100K in TTM revenue totaled 4,088, closely matching the average estimate of 4,089 [4] - Current Remaining Performance Obligation (RPO) stands at $2.25 billion, slightly below the average estimate of $2.27 billion [4] - Total Remaining Performance Obligations (RPO) are reported at $3.80 billion, exceeding the average estimate of $3.76 billion [4] - Non-Current Remaining Performance Obligation (RPO) is $1.55 billion, above the average estimate of $1.48 billion [4]

Zoom Communications Q4 FY25 Earnings February 24, 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 ...

Company Performance - Zoom Communications reported quarterly earnings of $1.41 per share, exceeding the Zacks Consensus Estimate of $1.31 per share, but slightly down from $1.42 per share a year ago, representing an earnings surprise of 7.63% [1] - The company posted revenues of $1.18 billion for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 0.50% and showing an increase from $1.15 billion year-over-year [2] - Over the last four quarters, Zoom has consistently surpassed consensus EPS and revenue estimates [2] Stock Outlook - The immediate price movement of Zoom's stock will largely depend on management's commentary during the earnings call and future earnings expectations [3] - Year-to-date, Zoom shares have increased by approximately 1.1%, compared to a 2.2% gain in the S&P 500 [3] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $1.29 on revenues of $1.18 billion, while for the current fiscal year, the estimate is $5.29 on revenues of $4.79 billion [7] - The estimate revisions trend for Zoom is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which Zoom belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Core Insights - Zoom Communications reported better-than-expected earnings driven by advancements in AI and strong enterprise growth [1][2] Financial Performance - The company announced fiscal Q4 2025 results with an EPS of $1.41, surpassing analysts' expectations of $1.30 [2] - Revenue increased by 3.3% year-over-year to $1.184 billion, exceeding projections of $1.178 billion [2][3] - Operating cash flow rose by 20.9% to $424.6 million, while free cash flow increased by 25.1% to $416.2 million [3][6] - GAAP operating margin improved by 430 basis points year-over-year to 19% [6] Business Focus and Strategy - Zoom specializes in video conferencing and voice call solutions, with a significant focus on AI innovations like Zoom AI Companion [4][7] - The enterprise segment contributed approximately 59% of total revenue, with a 5.9% increase in enterprise revenue to $706.8 million [5][6] - The number of clients generating over $100,000 in revenue increased by 7.3% over the past four quarters [5] Future Outlook - For fiscal 2026, Zoom projects revenues between $4.785 billion and $4.795 billion, indicating moderate growth [8] - Management expects non-GAAP EPS to range from $5.34 to $5.37, emphasizing efficiency to maintain profitability [8] - The company is focused on customer retention, with a net dollar expansion rate for enterprise clients just below 100% [9] - Plans to leverage AI integration across services to enhance competitiveness against rivals like Microsoft Teams [9]

Zoom (ZM) Q4 2025 Earnings Call February 24, 2025 05:00 PM ET Company Participants Charles Eveslage - Head of Investor RelationsEric Yuan - Founder & CEOMichelle Chang - Chief Financial OfficerKash Rangan - Managing DirectorSamad Samana - Managing DirectorMeta Marshall - Managing DirectorPeter Levine - Managing DirectorMark Murphy - Managing DirectorThomas Blakey - Managing DirectorMichael Funk - SVPRishi Jaluria - Managing DirectorSiti Panigrahi - Managing Director Conference Call Participants Ryan MacWill ...

Revenue Performance - Fourth quarter total revenue was $1,184.1 million, up 3.3% year over year, with full fiscal year total revenue of $4,665.4 million, up 3.1% year over year[6] - Revenue for the three months ended January 31, 2025, was $1,184,138 thousand, representing an increase from $1,146,457 thousand in the same period of 2024, a growth of approximately 3.3%[33] - GAAP revenue for the three months ended January 31, 2025, was $1,184,138, representing a year-over-year growth of 3.3% compared to $1,146,000 in 2024[38] - Full fiscal year 2026 total revenue is expected to be between $4.785 billion and $4.795 billion, with non-GAAP income from operations expected between $1.850 billion and $1.860 billion[15] Profitability Metrics - Non-GAAP net income for the fourth quarter was $446.9 million, or $1.41 per share, compared to $444.0 million, or $1.42 per share in the same quarter last year[5] - Net income for the year ended January 31, 2025, was $1,010,238 thousand, compared to $637,462 thousand for the year ended January 31, 2024, reflecting a year-over-year increase of approximately 58.5%[33] - The diluted net income per share for the year ended January 31, 2025, was $3.21, up from $2.07 for the year ended January 31, 2024, representing a growth of approximately 55.1%[33] - Non-GAAP income from operations for the year ended January 31, 2025, was $1,837,895, reflecting a year-over-year growth of 3.5% from $1,774,888 in 2024[37] Cash Flow and Liquidity - Operating cash flow for the fourth quarter was $424.6 million, up 20.9% year over year, with full fiscal year operating cash flow of $1,945.3 million, up 21.7% year over year[8] - Free cash flow for the fiscal year was $1,808.7 million, up 22.9% year over year[10] - Free cash flow (non-GAAP) for the year ended January 31, 2025, was $1,808,748, up from $1,471,883 in 2024, indicating a growth of 22.9%[37] - Cash flows from operating activities for the year ended January 31, 2025, totaled $1,945,308, an increase from $1,598,836 in 2024[37] - The company’s cash, cash equivalents, and restricted cash at the end of the year was $1,361,417, down from $1,565,380 at the end of the previous year[35] Customer Metrics - The number of customers contributing more than $100,000 in trailing 12 months revenue increased by 7.3% year over year[6] - Approximately 192,600 Enterprise customers were reported at the end of the fourth quarter[14] - The trailing 12-month net dollar expansion rate for Enterprise customers was 98%[14] - The net dollar expansion rate for Enterprise customers is calculated based on the annual recurring revenue (ARR) from the previous period, indicating strong customer retention and growth potential[27] Operating Efficiency - GAAP operating margin for the fourth quarter was 19.0%, up 430 basis points year over year, and non-GAAP operating margin was 39.5%, up 80 basis points year over year[6] - The company reported a GAAP operating margin of 19.0% for the three months ended January 31, 2025, compared to 14.7% in the same period of 2024[37] - The company reported a non-GAAP operating margin of 39.5% for the three months ended January 31, 2025, compared to 38.7% in the same period of 2024[37] Asset and Liability Overview - The total current assets as of January 31, 2025, were $8,675,974 thousand, an increase from $7,926,219 thousand as of January 31, 2024, representing a growth of approximately 9.4%[31] - The total liabilities as of January 31, 2025, were $2,053,337 thousand, compared to $1,910,387 thousand as of January 31, 2024, reflecting an increase of approximately 7.5%[31] - The total stockholders' equity as of January 31, 2025, was $8,935,084 thousand, an increase from $8,019,406 thousand as of January 31, 2024, indicating a growth of approximately 11.4%[31] Research and Development - Research and development expenses for the three months ended January 31, 2025, were $217,121 thousand, compared to $205,282 thousand in the same period of 2024, showing an increase of about 5.4%[33]