Zoom Communications, Inc. · NASDAQ:ZM

Zoom Communications — Q4 2025 Earnings Presentation

24 slides from Zoom Communications's earnings presentation, Feb 24, 2025

1. Slide 1: Zoom Communications Q4 FY25 Earnings

   Zoom Communications Q4 FY25 Earnings February 24, 2025 © 2025 Zoom 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 statementsˮ 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 2026 and full fis

4. Slide 4: The Evolution of AI Companion

   The Evolution of AI Companion From meeting summaries to your AI agent orchestrator © 2025 Zoom Communications, Inc.

5. Slide 5: © 2025 Zoom Communications, Inc.

   © 2025 Zoom Communications, Inc.

6. Slide 6: Building momentum in Contact Center & Workvivo

   Building momentum in Contact Center & Workvivo Largest ARR CX deal, 15,000 3 new Workvivo customers agents with >$1M in ARR 100% YoY growth in # of 89% YoY growth in # of total customers with $100k ARR customers © 2025 Zoom Communications, Inc.

7. Slide 7: Priorities in FY26 and beyond

   Priorities in FY26 and beyond Expanding AI Companion Strengthening our Workplace platform Building upon new product momentum © 2025 Zoom Communications, Inc.

8. Slide 8: Q4 customer wins highlight the value of both our core and emerging products

   Q4 customer wins highlight the value of both our core and emerging products A leading global airline © 2025 Zoom Communications, Inc.

9. Slide 9: Revenue expansion in Q4 against FX pressure; continued Online churn stability

   Revenue expansion in Q4 against FX pressure; continued Online churn stability Total Revenue1 Enterprise Revenue (in millions) (in millions) $4 FX Impact 4% 6% Online Average 3% Monthly Churn2 © 2025 Zoom Communications, Inc. For endnote descriptions, see final slide

10. Slide 10: Continued growth in the up-market

    Continued growth in the up-market # of Customers Contributing >$100k in TTM Revenue 7% 98% TTM Net Dollar Expansion Rate for Enterprise Customers1 192.6k Enterprise Customers2 © 2025 Zoom Communications, Inc. For endnote descriptions, see final slide

11. Slide 11: Growth across the globe despite FX headwinds

    Growth across the globe despite FX headwinds Revenue1 YoY Growth (in millions) APAC 3% EMEA 2% Americas 4% © 2025 Zoom Communications, Inc. For endnote descriptions, see final slide

12. Slide 12: Q4 FY25 expenses and margins

    Q4 FY25 expenses and margins GAAP Non-GAAP1 Yr/Yr Yr/Yr Results Results Revenue $1,184 million 3% $1,184 million 3% Gross Profit 75.7% 17 bps 78.8% 32 bps As a % of Revenue R&D Expense 18.3% 43 bps 11.2% 129 bps S&M Expense 30.3% 206 bps) 23.4% 92 bps G&A Expense 8.1% 285 bps) 4.7% 150 bp

13. Slide 13: 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% 41% 42% Unbilled Non-Current RPO 6% 3% 59% 58% Deferred Revenue Current RPO 7% 8% © 2025 Zoom Communications, Inc. For endnote descriptions, see final sli

14. Slide 14: Strong cash flow, ~$7.8B cash balance; share buy-back going beyond dilution in Q4

    Strong cash flow, ~$7.8B cash balance1; Share buy-back going beyond dilution in Q4 Operating Cash Flow Free Cash Flow2 (in Millions) (in Millions) 21% ~4.3M 25% Shares repurchased in Q4 ~900k Reduction in common stock outstanding in Q4 © 2025 Zoom Communications, Inc. For endnote descriptions, see fin

15. Slide 15: Full Fiscal Year 2025 results demonstrate progress driving value for shareholders

    Full Fiscal Year 2025 results demonstrate progress driving value for shareholders ● Total Revenue up 3.1% (H2 growth of 3.4%) Top-line Progress ● Enterprise Revenue up 5.2% (H2 growth of 5.9%) ● FCF1 grew 22.9% Strong Margins & FCF ● NG Operating Margin2 of 39.4%, +20 bps Optimizing Capital ● SBC do

16. Slide 16: Q1 & Fiscal Year 2026 outlook

    Q1 & Fiscal Year 2026 outlook Outlook1 Q1 FY26 FY26 Revenue $1,162  $1,167 million $4,785  $4,795 million Revenue $1,168  $1,173 million $4,803  $4,813 million Constant Currency) Non-GAAP Operating $440  $445 million $1,850  $1,860 million Income Weighted Average Share 316 million 318 million

17. Slide 17: © 2025 Zoom Communications, Inc.

    © 2025 Zoom Communications, Inc.

18. Slide 18: Thank you

    Thank you © 2025 Zoom Communications, Inc.

19. Slide 19: Appendix

    Appendix © 2025 Zoom Communications, Inc.

20. Slide 20: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation $ in Thousands) Q4 FY24 Q4 FY25 FY24 FY25 Gross Profit Total Revenue $1,146,457 $1,184,138 $4,527,224 $4,665,433 GAAP Gross Profit $870,150 $896,783 $3,449,423 $3,535,806 (+) Stock-based compensation expense and related payroll taxes $35,497 $34,879 $154,879 $137,406

21. Slide 21: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation $ in Thousands except EPS Q4 FY24 Q4 FY25 FY24 FY25 Operating Profit Total Revenue $1,146,457 $1,184,138 $4,527,224 $4,665,433 GAAP Operating Profit $168,530 $225,063 $525,279 $813,295 (+) Stock-based compensation expense and related payroll taxes $262,754 $232,983

22. Slide 22: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation $ in Thousands) Q4 FY24 Q4 FY25 FY24 FY25 Free Cash Flow Cash Flow from Operations $351,225 $424,566 $1,598,836 $1,945,308 (-) Purchases of PPE $18,540 $8,334 $126,953 $136,560 Free Cash Flow $332,685 $416,232 $1,471,883 $1,808,748 Operating Cash Flow Margin

23. Slide 23: Historic Metrics

    Historic Metrics $ in millions) Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Revenue $1,105.4 $1,138.7 $1,136.7 $1,146.5 $1,141.2 $1,162.5 $1,177.5 $1,184.1 Y/Y growth 3% 4% 3% 3% 3% 2% 4% 3% GAAP Income (loss) from operations $9.7 $177.6 $169.4 $168.5 $203.0 $202.4 $182.8 $225.1

24. Slide 24: Endnotes

    Endnotes Revenue expansion in Q4 against FX pressure; continued Online churn Q4 FY25 expenses and margins stability 1. See appendix for a reconciliation of non-GAAP to GAAP financial measures. 1. Not drawn to scale. Currency Impact is a non-GAAP metric. See appendix for a reconciliation of non-GAAP

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