Slide 1: Zoom Video Communications Q2 FY24 Earnings
Zoom Video Communications Q2 FY24 Earnings August 21, 2023 © 2023 Zoom Video Communications, Inc.
Slide 2: Use of non-GAAP financial measures
Use of 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 non-GAAP
Slide 3: Safe Harbor Statement
Safe Harbor This presentation and the accompanying oral presentation contain express and implied “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Zoom's financial outlook for the third quarter and full fiscal year
Slide 4: One platform delivering limitless human connection
zoom One platform delivering limitless human connection rd Party ‘Apps & Scheduler ~< Zoom 10 for Sales . = ‘Team Chat Hudales re oJ wa sxdParty ethgs Apps is } Lo) il Continuous: = Rooms Whiteboard Customer Collaboration Strengthen customer relationships Employee Collaboration One solution to power
Slide 5: Customer wins highlight the power of the platform
Customer wins highlight the power of the platform © 2023 Zoom Video Communications, Inc.
Slide 6: Q2 Milestones
Q2 Milestones Zoom Phone Operating reaches Cash Flow Surpassed 500 ~$0.5B Contact Center grew 31% annualized run rate revenue customers YoY © 2023 Zoom Video Communications, Inc. 6
Slide 7: Continued top-line growth with positive trends in Enterprise and Online
Continued top-line growth with positive trends in Enterprise and Online Total Revenue1 Enterprise Revenue Online Average (in millions) (in millions) Monthly Churn2 Currency Impact 10% 4% 3.6% 3.2% For endnote descriptions, see final slide © 2023 Zoom Video Communications, Inc. 7
Slide 8: Growth in new and existing Enterprise customers
Growth in new and existing Enterprise customers # of Enterprise Customers1 # of Customers Contributing >$100k in TTM Revenue 7% 109% 18% TTM Net Dollar Expansion Rate for Enterprise Customers2 in Q2 FY24 For endnote descriptions, see final slide © 2023 Zoom Video Communications, Inc. 8
Slide 9: Growth in Americas, macro headwinds in ROW
Growth in Americas, macro headwinds in ROW Revenue1 YoY Growth (in millions) APAC -3% EMEA -1% Americas 6% For endnote descriptions, see final slide © 2023 Zoom Video Communications, Inc. 9
Slide 10: Q2 FY24 expenses and margins
Q2 FY24 expenses and margins GAAP Non-GAAP1 Yr/Yr Yr/Yr Results Results Revenue $1,139 million 4% $1,139 million 4% Gross Profit 76.6% +148 bps 80.3% +144 bps As a % of Revenue R&D Expense 16.8% +115 bps 9.1% +25 bps S&M Expense 32.8% (363 bps) 24.2% (176 bps) G&A Expense 11.4% (56 bps) 6.4% (179 bp
Slide 11: Growing future revenue under contract
Growing future revenue under contract Total RPO1 YoY Growth Current2 & Non-Current RPO YoY Growth (in millions) (in millions) Total RPO Total RPO 9% 9% 41% Unbilled 39% Non-Current RPO 18% 13% 59% 61% Deferred Revenue Current RPO -2% 6% For endnote descriptions, see final slide © 2023 Zoom Video Comm
Slide 12: Strong cash flow and position in Q2
Strong cash flow and position in Q2 Operating Cash Flow Free Cash Flow1 (in Millions) (in Millions) 26% Cash Balance2 31% $6.0 billion For endnote descriptions, see final slide © 2023 Zoom Video Communications, Inc. 12
Slide 13: Q3 and Fiscal Year 2024 outlook
Q3 and Fiscal Year 2024 outlook Outlook1 Q3 FY24 FY24 Revenue $1,115 - $1,120 million $4,485 - $4,495 million Total Revenue $1,117 - $1,122 million $4,516 - $4,526 million (Constant Currency) Non-GAAP Operating $400 - $405 million $1,685 - $1,695 million Income Weighted Average Share 309 million 308
Slide 14: October 3-4, 2023
October 3-4, 2023 Join us in-person in San Jose or virtually on Zoom Events
Slide 15: © 2023 Zoom Video Communications, Inc.
© 2023 Zoom Video Communications, Inc. 15
Slide 16: Thank you
Thank you © 2023 Zoom Video Communications, Inc. 16
Slide 17: Appendix
Appendix © 2023 Zoom Video Communications, Inc. 17
Slide 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Thousands) Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Gross Profit Total Revenue $1,099,458 $1,138,676 $2,173,258 $2,244,040 GAAP Gross Profit $825,847 $872,117 $1,637,826 $1,713,534 (+) Stock-based compensation expense and related payroll taxes $38,576 $40,590 $70,174 $80
Slide 19: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Thousands except EPS) Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Operating Profit Total Revenue $1,099,458 $1,138,676 $2,173,258 $2,244,040 GAAP Operating Profit $121,743 $177,618 $308,808 $187,360 (+) Stock-based compensation expense and related payroll taxes $262,592 $26
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Thousands) Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Free Cash Flow Cash Flow from Operations $257,209 $335,971 $783,360 $754,458 (-) Purchases of PPE $(27,832) $(46,600) $(52,870) $(68,426) Free Cash Flow $229,377 $289,371 $730,490 $686,032 Operating Cash Flow Margin 23.
Slide 21: Historic Metrics
Historic Metrics ($ in millions) Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Revenue $1,050.8 $1,071.4 $1,073.8 $1,099.5 $1,101.9 $1,117.8 $1,105.4 $1,138.7 Y/Y growth 35% 21% 12% 8% 5% 4% 3% 4% GAAP Operating Income $290.9 $251.8 $187.1 $121.7 $66.5 ($129.9) $9.7 $177.6 Stock-ba
Slide 22: Endnotes
Endnotes Continued top-line growth with positive trends in Enterprise and Online Growth in Americas, macro headwinds in ROW 1. Not drawn to scale. Currency Impact is a non-GAAP metric. See appendix for a reconciliation of 1. Subtotals revenue and revenue percent have been rounded. non-GAAP to GAAP f