Zoom(ZM)2024-05-22 20:02Financial 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].