Slide 1: Zoom Video Communications Q4 FY24 Earnings
Zoom Video Communications Q4 FY24 Earnings February 26, 2024 © 2024 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 first quarter of fiscal year 2025
Slide 4: One platform delivering limitless human connection
One platform delivering limitless human connection © 2024 Zoom Video Communications, Inc. 4
Slide 5: Customer traction highlights the appeal of our AI and customer experience solutions
Customer traction highlights the appeal of our AI and customer experience solutions © 2024 Zoom Video Communications, Inc. 5
Slide 6: Strong enterprise performance and financial discipline in FY24
Strong enterprise performance and financial discipline in FY24 Enterprise Free Cash Achieved Revenue Up Flow1 grew 39.2% NG Operating 9% 24% Margin1 For endnote descriptions, see final slide © 2024 Zoom Video Communications, Inc. 6
Slide 7: Emerging product traction in Q4
Emerging product traction in Q4 Zoom Contact Reached 95 ~510k Center Zoom Phone accounts Licenses grew customers with enabling ~3x YoY 10k+ seats Zoom AI Companion © 2024 Zoom Video Communications, Inc. 7
Slide 8: 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 $2 FX impact 5% 3% For endnote descriptions, see final slide © 2024 Zoom Video Communications, Inc. 8
Slide 9: Growth in new and existing Enterprise customers
Growth in new and existing Enterprise customers # of Enterprise Customers1 # of Customers Contributing >$100k in TTM Revenue 3% 10% 101% TTM Net Dollar Expansion Rate for Enterprise Customers2 in Q4 FY24 For endnote descriptions, see final slide © 2024 Zoom Video Communications, Inc. 9
Slide 10: Growth in Americas, macro headwinds in ROW
Growth in Americas, macro headwinds in ROW Revenue1 YoY Growth (in millions) APAC -3% EMEA 0% Americas 4% For endnote descriptions, see final slide © 2024 Zoom Video Communications, Inc. 10
Slide 11: Q4 FY24 expenses and margins
Q4 FY24 expenses and margins GAAP Non-GAAP1 Yr/Yr Yr/Yr Results Results Revenue $1,146 million 3% $1,146 million 3% Gross Profit 75.9% +223 bps 79.2% (64 bps) As a % of Revenue R&D Expense 17.9% (547 bps) 9.9% +73 bps S&M Expense 32.4% (1,287 bps) 24.3% (256 bps) G&A Expense 10.9% (576 bps) 6.2% (13
Slide 12: 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 4% 4% 42% 44% Unbilled Non-Current RPO 8% -1% 58% 56% Deferred Revenue Current RPO -3% 8% For endnote descriptions, see final slide © 2024 Zoom Video Commu
Slide 13: Strong cash flow and position in Q4
Strong cash flow and position in Q4 Operating Cash Flow Free Cash Flow1 (in Millions) (in Millions) Cash Balance2 66% 81% ~$7 billion For endnote descriptions, see final slide © 2024 Zoom Video Communications, Inc. 13
Slide 14: Q1 and Fiscal Year 2025 outlook
Q1 and Fiscal Year 2025 outlook Outlook1 Q1 FY25 FY25 Revenue ~$1,125 million ~$4,600 million Total Revenue ~$1,125 million ~$4,597 million (Constant Currency) Non-GAAP Operating $410 - $415 million $1,720 - $1,730 million Income Weighted Average Share 316 million 321 million Count Non-GAAP EPS $1.1
Slide 15: © 2023 Zoom Video Communications, Inc.
© 2023 Zoom Video Communications, Inc. 15
Slide 16: Thank you
Thank you © 2023 Zoom Video Communications, Inc. 16
Slide 17: Appendix
Appendix © 2024 Zoom Video Communications, Inc. 17
Slide 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Thousands) Q4 FY23 Q4 FY24 FY23 FY24 Gross Profit Total Revenue $1,117,803 $1,146,457 $4,392,960 $4,527,224 GAAP Gross Profit $823,449 $870,150 $3,292,509 $3,449,423 (+) Stock-based compensation expense and related payroll taxes $65,308 $35,497 $177,330 $154,879
Slide 19: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Thousands except EPS) Q4 FY23 Q4 FY24 FY23 FY24 Operating Profit Total Revenue $1,117,803 $1,146,457 $4,392,960 $4,527,224 GAAP (loss) income from operations $(129,887) $168,530 $245,429 $525,279 (+) Stock-based compensation expense and related payroll taxes $52
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Thousands) Q4 FY23 Q4 FY24 FY23 FY24 Free Cash Flow Cash Flow from Operations $211,588 $351,225 $1,290,262 $1,598,836 (-) Purchases of PPE $(28,258) $(18,540) $(103,826) $(126,953) Free Cash Flow $183,330 $332,685 $1,186,436 $1,471,883 Operating Cash Flow Margin
Slide 21: Historic Metrics
Historic Metrics ($ in millions) Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Revenue $1,073.8 $1,099.5 $1,101.9 $1,117.8 $1,105.4 $1,138.7 $1,136.7 $1,146.5 Y/Y growth 12% 8% 5% 4% 3% 4% 3% 3% GAAP Income (loss) from operations $187.1 $121.7 $66.5 ($129.9) $9.7 $177.6 $169.4 $168
Slide 22: Endnotes
Endnotes Strong enterprise performance and financial discipline in FY24 Growth in Americas, macro headwinds in ROW 1. See appendix for a reconciliation of non-GAAP to GAAP financial measures. 1. Subtotals revenue and revenue percent have been rounded. Continued top-line growth with positive trends in