Zoom Communications, Inc. · NASDAQ:ZM

Zoom Communications — Q1 2025 Earnings Presentation

23 slides from Zoom Communications's earnings presentation, May 20, 2024

1. Slide 1: Zoom Video Communications Q1 FY25 Earnings

   Zoom Video Communications Q1 FY25 Earnings May 20, 2024 © 2024 Zoom Video Communications, Inc.

2. 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,

3. Slide 3: Safe Harbor Statement

   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 second quarter of fiscal year 2025 and full fi

4. Slide 4: Awards and customer recognition

   Awards and customer recognition © 2024 Zoom Video Communications, Inc.

5. Slide 5: Reimagine teamwork with Zoom Workplace

   Reimagine teamwork with Powered by Streamline communications Improve productivity Meetings Team Chat Phone Mail & Scheduler Clips Docs Whiteboard Notes Calendar Increase employee engagement Optimize in-person time Rooms Workspace Digital Visitor Workvivo Reservation Signage Management © 2024 Zoom Vi

6. Slide 6: Zoom Workplace, AI, and Business Services Innovation

   Zoom Workplace, AI, and Business Services Innovation © 2024 Zoom Video Communications, Inc. © 2024 Zoom Video Communications, Inc.

7. Slide 7: Customer traction in Q1 highlights the appeal of our AI and customer experience solutions

   Customer traction in Q1 highlights the appeal of our AI and customer experience solutions © 2024 Zoom Video Communications, Inc.

8. Slide 8: Q1 Milestones

   Reached 90 Contact Center accounts with >$100k ARR Up 246% year over year Q1 Amassed 5 Zoom Phone Milestones customers with 100k+ seats Includes one marquee financial services win in Q1 Surpassed 700k customer accounts enabling Zoom AI Companion (as of today) Customers range from solopreneurs up to

9. Slide 9: Continued Enterprise growth and Online stabilization

   Continued Enterprise growth and Online stabilization Total Revenue1 Enterprise Revenue (in millions) (in millions) 5% 3% Online Average Monthly Churn2 © 2024 Zoom Video Communications, Inc. For endnote descriptions, see final slide

10. Slide 10: Continued growth in number of up-market customers

    Continued growth in number of up-market customers # of Customers Contributing >$100k in TTM Revenue 191.0k 8% Enterprise Customers1 (adjusted for the transition of 26.8k customers to Online in Q1) 99% TTM Net Dollar Expansion Rate for Enterprise Customers2 © 2024 Zoom Video Communications, Inc. For

11. Slide 11: Continued growth in Americas, FX headwinds in APAC

    Continued growth in Americas, FX headwinds in APAC Revenue1 YoY Growth (in millions) APAC -2% EMEA 2% Americas 4% © 2024 Zoom Video Communications, Inc. For endnote descriptions, see final slide

12. Slide 12: Q1 FY25 expenses and margins

    Q1 FY25 expenses and margins GAAP Non-GAAP1 Yr/Yr Yr/Yr Results Results Revenue $1,141 million 3% $1,141 million 3% Gross Profit 76.1% (7 bps) 79.3% (123 bps) R&D Expense 18.0% (92 bps) 10.2% +61 bps S&M Expense 30.5% (773 bps) 23.2% (197 bps) G&A Expense 9.8% (833 bps) 5.9% (167 bps) Operating Inco

13. Slide 13: 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 5% 5% 41% 41% Unbilled Non-Current RPO 9% 3% 59% 59% Deferred Revenue Current RPO -1% 7% © 2024 Zoom Video Communications, Inc. For endnote descriptions,

14. Slide 14: Strong cash flow and ~$7.4B cash balance, while actively repurchasing shares

    Strong cash flow and ~$7.4B cash balance1, while actively repurchasing shares Operating Cash Flow Free Cash Flow2 (in Millions) (in Millions) Shares repurchased 44 41% % in Q1 ~2.4 million © 2024 Zoom Video Communications, Inc. For endnote descriptions, see final slide

15. Slide 15: Q2 and Fiscal Year 2025 outlook

    Q2 and Fiscal Year 2025 outlook Outlook1 Q2 FY25 FY25 Revenue $1,145 - $1,150 million $4,610 - $4,620 million Total Revenue $1,147 - $1,152 million $4,616 - $4,626 million (Constant Currency) Non-GAAP Operating $415 - $420 million $1,740 - $1,750 million Income Weighted Average Share 316 million 319

16. Slide 16: © 2024 Zoom Video Communications, Inc.

    © 2024 Zoom Video Communications, Inc.

17. Slide 17: Thank you

    Thank you © 2024 Zoom Video Communications, Inc.

18. Slide 18: Appendix

    Appendix © 2024 Zoom Video Communications, Inc.

19. Slide 19: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation ($ in Thousands) Q1 FY24 Q1 FY25 Gross Profit Total Revenue $1,105,364 $1,141,234 GAAP Gross Profit $841,417 $867,932 (+) Stock-based compensation expense and related payroll taxes $40,120 $35,359 (+) Acquisition-related expense $1,557 $1,805 (+) Restructuring expense

20. Slide 20: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation ($ in Thousands except EPS) Q1 FY24 Q1 FY25 Operating Profit Total Revenue $1,105,364 $1,141,234 GAAP Operating Profit $9,742 $203,022 (+) Stock-based compensation expense and related payroll taxes $278,048 $242,874 (+) Litigation settlements, net $52,500 - (+) Acquis

21. Slide 21: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation ($ in Thousands) Q1 FY24 Q1 FY25 Free Cash Flow Cash Flow from Operations $418,487 $588,191 (-) Purchases of PPE $(21,826) $(18,508) Free Cash Flow $396,661 $569,683 Operating Cash Flow Margin 37.9% 51.5% Free Cash Flow Margin 35.9% 49.9% Net Cash Used in Investing Ac

22. Slide 22: Historic Metrics

    Historic Metrics ($ in millions) Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Revenue $1,099.5 $1,101.9 $1,117.8 $1,105.4 $1,138.7 $1,136.7 $1,146.5 $1,141.2 Y/Y growth 8% 5% 4% 3% 4% 3% 3% 3% GAAP Income (loss) from operations $121.7 $66.5 ($129.9) $9.7 $177.6 $169.4 $168.5 $203.

23. Slide 23: Endnotes

    Endnotes Continued Enterprise growth and Online stabilization Continued growth in Americas, FX headwinds in APAC 1. Currency Impact is a non-GAAP metric. See appendix for a reconciliation of non-GAAP to GAAP 1. Subtotals revenue and revenue percent have been rounded. financial measures. Zoom defines

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