Slide 1: Zoom Video Communications Q1 FY21 Earnings
Zoom Video Communications Q1 FY21 Earnings June 2, 2020 © 2020 Zoom Video Communications, Inc. 1
Slide 2: Use of Non-GAAP Financial Measures
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: non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, non-GAAP ope
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation and the accompanying oral presentation have been prepared by Zoom Video Communications, Inc. (“Zoom”) for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise
Slide 4: Zoom Video Communications Q1 FY21 Earnings
Zoom Video Communications Q1 FY21 Earnings June 2, 2020 © 2020 Zoom Video Communications, Inc. 4
Slide 5: Meeting the Increased Demand
Meeting the Increased Demand +Two 354% 175K +200% +300M Trillion Growth in Customers Number of licenses Q/Q growth of minutes Peak number of daily Annualized meeting with > 10 employees deployed for a new for the Global 2000 meeting participants minutes run rate customer customers © 2020 Zoom Video
Slide 6: Challenges and Commitment to Security and Privacy
Challenges and Commitment to Security and Privacy © 2020 Zoom Video Communications, Inc.
Slide 7: Happy Zoom Customers
Happy Zoom Customers © 2020 Zoom Video Communications, Inc. 7
Slide 8: Rapid Revenue Growth
Rapid Revenue Growth (in Millions) $328 $328 169% Yr/Yr $188 $167 $146 $122 $122 $106 $90 $75 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q1 FY21 © 2020 Zoom Video Communications, Inc. 8
Slide 9: Gaining Enterprise Traction
Gaining Enterprise Traction Growth in Customers with >$100K in Trailing 12-Month Revenue Growth in Customers1 with >$100K ARR 769 90% Yr/Yr +500 405 New customers1 with >$100K ARR in Q1’21 from Q4’20 Q1 FY20 Q1 FY21 1The number of customers are rounded down to the nearest hundred © 2020 Zoom Video C
Slide 10: Rapidly Growing Customer Base
Rapidly Growing Customer Base Customers1 with more than 10 Employees 265.4K Revenue from 354% customers with 10 or Yr/Yr fewer employees Q1’21: 30% Q4’20: 20% 58.5K Q1 FY20 Q1 FY21 1The number of customers are rounded down to the nearest hundred © 2020 Zoom Video Communications, Inc. 10
Slide 11: Strong Q1 Net Dollar Expansion Rate
Strong Q1 Net Dollar Expansion Rate TTM Net Dollar • 8th consecutive quarter above 130% Expansion Rate1 • Demonstrated Ability to Land and Expand +130% • Reflects Trust and Loyalty with Existing Customer in Q1 FY21 1We calculate net dollar expansion rate as of a period end by starting with the ARR f
Slide 12: Growing International Presence
Growing International Presence 1 Yr/Yr ROW 246% Americas 150% © 2020 Zoom Video Communications, Inc. 1Subtotal revenue has been rounded 12
Slide 13: Q1 FY21 Expenses and Margins
Q1 FY21 Expenses and Margins Q1 FY21 GAAP Non-GAAP1 Yr/Yr Yr/Yr Results Results Revenue $328 million 169% $328 million 169% Gross Margin 68.4% (1,184bps) 69.4% (1,149bps) As a % of Revenue1 Research & Development 8.0% (326bps) 6.4% (395bps) Sales & Marketing 37.0% (1,546bps) 31.5% (1,880bps) General
Slide 14: Growing Future Revenue Under Contract
Growing Future Revenue Under Contract Yr/Yr Yr/Yr 116% 127% 222% 270% 1 Remaining performance Obligations (RPO) consists of both billed considerations and unbilled considerations that we expect to recognize as revenue, which grew 184% year-over-year. We expect to recognize approximately 72% or $772
Slide 15: Rapid Cash Flow Growth
Rapid Cash Flow Growth Free Cash Flow Operating Cash Flow (in millions) 1 (in millions) $259.0 $251.7 1,065% 1,541% Yr/Yr Yr/Yr $22.2 $15.3 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 1 See appendix for a reconciliation of non-GAAP to GAAP financial measures. We define FCF as GAAP net cash provided by operating
Slide 16: Full Year and Q2 FY21 Outlook
Full Year and Q2 FY21 Outlook Q2FY21 FY21 Revenue $495 - $500 million $1,775 - $1,800 million Non-GAAP Outlook1 Non-GAAP Operating Income $130 - $135 million $355 - $380 million Weighted Average Share Count 299 million 300 million Non-GAAP EPS $0.44 - $0.46 $1.21 - $1.29 1 A reconciliation of non-GA
Slide 17: Questions
Questions
Slide 18: Thank you
Thank you
Slide 19: Appendix
Appendix
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Gross Profit ($ in thousands) QTD – Q1FY20 QTD – Q1FY21 Total Revenue $121,988 $328,167 GAAP Gross Profit $97,884 $224,460 (+) Stock-based compensation expense and related payroll taxes $830 $3,382 Non-GAAP Gross Profit $98,714 $227,842 Non-GAAP Gross Margin 80.9% 69.
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Operating Margin ($ in thousands) QTD – Q1FY20 QTD – Q1FY21 Total revenue $121,998 $328,167 GAAP operating profit $1,557 $23,385 (+) Stock-based compensation expense, related payroll taxes, and charitable donation of common stock $6,662 $31,246 Non-GAAP operating prof
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Free Cash Flow ($ in thousands) QTD – Q1FY20 QTD – Q1FY21 Cash flow from operations $22,236 $258,965 (-) Purchases of PPE $6,897 $7,272 Free cash flow $15,339 $251,693 © 2020 Zoom Video Communications, Inc. 22
Slide 23: Historic Metrics
Historic Metrics © 2020 Zoom Video Communications, Inc. 23