Zoom Communications, Inc. · NASDAQ:ZM
Zoom Communications — Q1 2026 Earnings Presentation
21 slides from Zoom Communications's earnings presentation, May 21, 2025
Slide 1: Zoom Communications Q1 FY26 Earnings
Zoom Communications Q1 FY26 Earnings May 21, 2025 © 2025 Zoom Communications, Inc.
Slide 2: 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 Use of margin, non-GAAP R&D expense, non-GAAP S&M expense,
Slide 3: Safe Harbor Statement
This presentation and the accompanying oral presentation contain express and implied “forward-looking statementsˮ within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Zoom's financial outlook for the second quarter of fiscal year 2026 and full fi
Slide 4: Rapid AI innovation expands customer value
Rapid AI innovation expands customer value New Agentic New Monetized Increasing AI adoption Capabilities Products GA 40% increase in MAUs Zoom Tasks Custom AI Companion Notable Meeting Notable Zoom Calendar scheduling Workplace for Clinicians Summary adopter: Phone AI adopter: Custom agents with Wo
Slide 5: Full, Integrated Platform drives multi-product adoption
Full, Integrated Platform drives multi-product adoption ● AI-first Workplace Platform ● Better together Collaboration Experience and Customer Experience ● Open ecosystem Q1 land & expand win: © 2025 Zoom Communications, Inc.
Slide 6: Scaling High-Growth Department Solutions
Scaling High-Growth Department Solutions Customer Experience Revenue Accelerator Workvivo ● CC Customers 65% YoY ● Licenses 72% YoY ● Total Customers 106% YoY & ZVA largest deal to date Q1 win: ● ZCX ARR high double Q1 win: digits growth Q1 win: Migration Partner: © 2025 Zoom Communications, Inc.
Slide 7: Strengthening the Zoom story and paths to market
Strengthening the Zoom story and paths to market Welcome, Kim Storin Zoom CMO Strengthening our Channel Q1 Channel Win: Notable New Strategic Partner: © 2025 Zoom Communications, Inc.
Slide 8: Revenue expansion in Q1; improved Online churn
Revenue expansion in Q1; improved Online churn Total Revenue1 Enterprise Revenue (in millions) (in millions) $5 FX Impact 6% 3% Online Average Monthly Churn2 © 2025 Zoom Communications, Inc. For endnote descriptions, see final slide
Slide 9: Continued growth in the up-market and internationally
Continued growth in the up-market and internationally # of Customers Contributing >$100k Revenue by Region2 in TTM Revenue (in millions) YoY Growth 8% APAC 2% EMEA 1% 98% TTM Net Dollar Expansion Rate for Enterprise Customers1 Americas 4% © 2025 Zoom Communications, Inc. For endnote descriptions, se
Slide 10: Q1 FY26 expenses and margins
Q1 FY26 expenses and margins GAAP Non-GAAP1 Yr/Yr Yr/Yr Results Results Revenue $1,175 million 3% $1,175 million 3% Gross Profit 76.3% 25 bps 79.2% 13 bps As a % of Revenue R&D Expense 17.5% 53 bps 10.8% 59 bps S&M Expense 29.5% 96 bps 23.1% 5 bps G&A Expense 8.7% 104 bps) 5.4% 45 bps O
Slide 11: Growth in Deferred Revenue & RPO
Growth in Deferred Revenue & RPO Total RPO1 YoY Growth Current2 & Non-Current RPO YoY Growth (in millions) (in millions) Total RPO Total RPO 6% 6% 39% 41% Unbilled Non-Current RPO 6% 2% 61% 59% Deferred Revenue Current RPO 5% 8% © 2025 Zoom Communications, Inc. For endnote descriptions, see final sli
Slide 12: Strong Cash Flow, ~$7.8B cash balance
Strong Cash Flow, ~$7.8B cash balance1, accelerated execution of share buyback in Q1 Share Repurchases under $2.7B authorization Operating Cash Flow $489M OCF Margin 41.6% Free Cash Flow2 $463M FCF Margin 39.4% 5.6M ~21M Shares repurchased in Q1 Shares repurchased since Q1 FY25 © 2025 Zoom Communica
Slide 13: Q2 & raised fiscal year 2026 outlook
Q2 & raised fiscal year 2026 outlook Outlook1 Q2 FY26 FY26 Revenue $1,195 $1,200 million $4,800 $4,810 million Revenue $1,196 $1,201 million $4,808 $4,818 million Constant Currency) Non-GAAP Operating $460 $465 million $1,865 $1,875 million Income Weighted Average Share 310 million 312 m
Slide 14: © 2025 Zoom Communications, Inc.
© 2025 Zoom Communications, Inc.
Slide 15: Thank you
Thank you © 2025 Zoom Communications, Inc.
Slide 16: Appendix
Appendix © 2025 Zoom Communications, Inc.
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ in Thousands) Q1 FY25 Q1 FY26 Gross Profit Total Revenue $1,141,234 $1,174,715 GAAP Gross Profit $867,932 $896,313 (+) Stock-based compensation expense and related payroll taxes $35,359 $31,988 (+) Acquisition-related expense $1,805 $1,783 Non-GAAP Gross Profit $90
Slide 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ in Thousands except EPS Q1 FY25 Q1 FY26 Income from Operations Total Revenue $1,141,234 $1,174,715 GAAP Income from Operations $203,022 $241,592 (+) Stock-based compensation expense and related payroll taxes $242,874 $216,730 (+) Acquisition-related expense $10,70
Slide 19: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ in Thousands) Q1 FY25 Q1 FY26 Free Cash Flow Cash Flow from Operations $588,191 $489,261 (-) Purchases of PPE $18,508 $25,910 Free Cash Flow $569,683 $463,351 Operating Cash Flow Margin 51.5% 41.6% Free Cash Flow Margin 49.9% 39.4% Net Cash Used in Investing Ac
Slide 20: Historic Metrics
Historic Metrics $ in millions) Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Revenue $1,138.7 $1,136.7 $1,146.5 $1,141.2 $1,162.5 $1,177.5 $1,184.1 $1,174.7 Y/Y growth 4% 3% 3% 3% 2% 4% 3% 3% GAAP Income from operations $177.6 $169.4 $168.5 $203.0 $202.4 $182.8 $225.1 $241.6 Stoc
Slide 21: Endnotes
Endnotes Revenue expansion in Q1; improved Online churn Q1 FY26 expenses and margins 1. Not drawn to scale. Currency Impact is a non-GAAP metric. See appendix for a reconciliation of 1. See appendix for a reconciliation of non-GAAP to GAAP financial measures. non-GAAP to GAAP financial measures. Zoo