Zoom Video Communications, Inc. (ZM) 10-Q Quarterly Report August 2023

San Jose, California – August 21, 2023 – Zoom Video Communications, Inc. (NASDAQ: ZM), today announced financial results for the second fiscal quarter ended July 31, 2023.

“Our mission of delivering limitless human connection remains core as we continue to innovate and expand our platform to help bring value and enhanced productivity to our customers with new AI features like Zoom IQ Meeting Summary and Team Chat Compose, as well as Intelligent Director. I’m also proud of the team for reinventing modern customer experiences with Zoom Virtual Agent and Zoom Contact Center, which surpassed 500 customers in Q2,” said Eric S. Yuan, Zoom Founder, and CEO. “In addition to delivering innovation to our customers, in Q2 we delivered GAAP EPS of $0.59 and non-GAAP EPS of $1.34, both up meaningfully year over year. With this strong operating discipline, we grew operating cash flow by 31% year over year to $336 million.”

Second Quarter Fiscal Year 2024 Financial Highlights:

•Revenue: Total revenue for the second quarter was $1,138.7 million, up 3.6% year over year. After adjusting for foreign currency impact, revenue in constant currency was $1,148.9 million, up 4.5% year over year. Enterprise revenue was $659.5 million, up 10.2% year over year, and Online revenue was $479.2 million, down 4.3% year over year.

•Income from Operations and Operating Margin: GAAP income from operations for the second quarter was $177.6 million, compared to GAAP income from operations of $121.7 million in the second quarter of fiscal year 2023. After adjusting for stock-based compensation expense and related payroll taxes, acquisition-related expenses, restructuring expenses, and litigation settlements, net, non-GAAP income from operations for the second quarter was $461.7 million, compared to non-GAAP income from operations of $393.7 million in the second quarter of fiscal year 2023. For the second quarter, GAAP operating margin was 15.6% and non-GAAP operating margin was 40.5%.

•Net Income and Diluted Net Income Per Share: GAAP net income attributable to common stockholders for the second quarter was $182.0 million, or $0.59 per share, compared to GAAP net income attributable to common stockholders of $45.7 million, or $0.15 per share in the second quarter of fiscal year 2023.

Non-GAAP net income for the second quarter was $409.6 million, after adjusting for stock-based compensation expense and related payroll taxes, (gains) losses on strategic investments, net, acquisition-related expenses, restructuring expenses, litigation settlements, net, undistributed earnings attributable to participating securities, and the tax effects on non-GAAP adjustments. Non-GAAP net income per share was $1.34. In the second quarter of fiscal year 2023, non-GAAP net income was $323.5 million, or $1.05 per share.

•Cash and Marketable Securities: Total cash, cash equivalents, and marketable securities, excluding restricted cash, as of July 31, 2023 was $6.0 billion.

•Cash Flow: Net cash provided by operating activities was $336.0 million for the second quarter, compared to $257.2 million in the second quarter of fiscal year 2023, up 30.6% year over year. Free cash flow, which is net cash provided by operating activities less purchases of property and equipment, was $289.4 million, compared to $229.4 million in the second quarter of fiscal year 2023, up 26.2% year over year.

Customer Metrics: Drivers of total revenue included acquiring new customers and expanding across existing customers. At the end of the second quarter of fiscal year 2024, Zoom had:

•Approximately 218,100 Enterprise customers, up 6.9% from the same quarter last fiscal year.

The following information was filed by Zoom Video Communications, Inc. (ZM) on Monday, August 21, 2023 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

Please wait while we load the requested 10-Q report or click the link below:

https://last10k.com/sec-filings/report/1585521/000158552123000194/zm-20230731.htm

View differences made from one quarter to another to evaluate Zoom Video Communications, Inc.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ) — *Sample 10-K Year-over-Year (YoY) Comparison*

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were ~~removed~~ , added and changed by Zoom Video Communications, Inc..

Continue

Assess how Zoom Video Communications, Inc.'s management team is paid from their Annual Proxy

Zoom Video Communications, Inc.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2023 10-K Annual Report includes:

Voting Procedures
Board Members
Executive Team
Salaries, Bonuses, Perks
Peers / Competitors

Continue

Rating
Learn More

Filter Sentiment:

All

Positive

Negative

Filter Category:

All

Revenue

Financial

M & A

Other

Filter Subcategory:

All

Geography

Product

Earnings

Expense

Income

Debt

Cash Flow

Other

Inside Zoom Video Communications, Inc.'s 10-Q Quarterly Report:

Revenue - Geography Highlight
In addition, for the three and six months ended July 31, 2023, we experienced unfavorable foreign currency impact as a result of the continued strengthening of the U.S. dollar compared to certain foreign jurisdictions where we do a significant amount of business, which resulted in a $10.2 million and $28.7 million negative impact on revenue during the three and six months ended July 31, 2023, respectively.

Revenue - Product Highlight
However, based on our current business plan and revenue prospects, we believe our existing cash, cash equivalents, and marketable securities, together with net cash provided by operations, will be sufficient to meet our needs for at least the next 12 months and allow us to capitalize on growth opportunities.
Revenue - Geography Highlight
Cash from operations could also be affected by various risks and uncertainties, including, but not limited to, the recent changes in macroeconomic conditions such as high inflation, recessionary environments, and the fluctuations in foreign currency exchange rates, could impact the timing of cash collections from our customers and other risks detailed in the section titled "Risk Factors."
Financial - Earnings Highlight
The increase in gross margin was mainly due to increased efficiencies as we expanded our internal data center capacity.
Financial - Earnings Highlight
The increase in gross margin was mainly due to increased efficiencies as we expanded our internal data center capacity.
Financial - Expense
The increase was primarily due...Read more
Other - Other
Liquidity and Capital Resources As...Read more
Other - Other
Gains (Losses) on Strategic Investments,...Read more
Other - Other
Gains (Losses) on Strategic Investments,...Read more
Financial - Expense
General and Administrative General and...Read more
Financial - Earnings
Gross margin increased to 76.6%...Read more
Financial - Earnings
Gross margin increased to 76.4%...Read more
Revenue - Product
Sales and Marketing Sales and...Read more
Other - Other
We believe that FCF is...Read more
Other - Other
35 Table of Contents Financing...Read more
Other - Other
The restructuring plan included a...Read more
Other - Other
Many factors may contribute to...Read more
Financial - Expense
These costs are related to...Read more
Financial - Expense
The increase was primarily due...Read more
Revenue - Product
The increase in revenue was...Read more
Revenue - Product
The increase in revenue was...Read more
Revenue - Product
For the three and six...Read more
Revenue - Product
32 Table of Contents Comparison...Read more
Revenue - Product
As of July 31, 2023...Read more
Revenue - Product
Our revenue was $1,138.7 million...Read more
Revenue - Product
Our revenue was $2,244.0 million...Read more
Financial - Expense
The decrease in general and...Read more
Financial - Expense
The decrease was primarily due...Read more
Other - Other
Our net dollar expansion rate...Read more
Financial - Income
Other Income (Expense), Net Other...Read more
M & A - Other
We continue to focus on...Read more
Other - Other
We also provide services, which...Read more
Revenue - Product
Our future capital requirements will...Read more
Financial - Debt
Our marketable 34 Table of...Read more
Revenue - Product
Customers Contributing More Than $100,000...Read more
Financial - Cash Flow
The decrease in operating cash...Read more
Other - Other
FCF is presented for supplemental...Read more
Other - Other
Innovation and Expansion of Our...Read more
Revenue - Product
Our net dollar expansion rate...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Zoom Video Communications, Inc. provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Ticker: ZM
CIK: 1585521
Form Type: 10-Q Quarterly Report
Accession Number: 0001585521-23-000194
Submitted to the SEC: Wed Aug 23 2023 4:01:51 PM EST
Accepted by the SEC: Wed Aug 23 2023
Period: Monday, July 31, 2023
Industry: Computer Programming Data Processing