Zoom Communications, Inc. · NASDAQ:ZM

Zoom Communications — Q3 2025 Earnings Presentation

24 slides from Zoom Communications's earnings presentation, Nov 25, 2024

  1. Slide 1: Zoom Communications Q3 FY25 Earnings

    Zoom Communications Q3 FY25 Earnings November 25, 2024 © 2024 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 fourth quarter of fiscal year 2025 and full fi

  4. Slide 4: Thanks for attending Zoomtopia!

    Thanks for attending Zoomtopia! Record virtual attendance, up 55% YoY New innovations announced: ● Zoom AI Companion 2.0 ● Custom AI Companion (paid add-on) ● Custom AI Companion for Healthcare & Education (paid add-ons) ● Zoom Workplace for Frontline Unveiled our new vision: "AI-first Work Platform

  5. Slide 5: AI Companion 2.0 Meets Customers' Evolving Demands

    2.0 Meets Customers Evolving Demands Transform the way you work and get more done Contextual Synthesizes Takes action Available across Zoom Workplace. Synthesizes information by pulling in data Detects, track and even completes Understands what you are looking for, from your meetings, chats, docs, a

  6. Slide 6: AI-first roadmap expands potential TAM

    AI-first roadmap expands potential TAM Customized AI Industry Specific Frontline Custom AI AI Companion AI Companion Workplace for Companion add-on for Healthcare for Education Frontline Paid add-on for Zoom Paid add-on providing Paid add-on that Purpose-built on-shift Workplace enabling healthcare-sp

  7. Slide 7: Contact Center & Workvivo deliver standout results in Q3

    Contact Center & Workvivo deliver standout results in Q3 Largest ever Contact 3 new Workvivo Center customer at customers with 20,000 seats >$1 million in ARR © 2024 Zoom Communications, Inc.

  8. Slide 8: Q3 customer wins validate progress towards AI-first platform

    Q3 customer wins validate progress towards AI-first platform bridging Workplace & Business Services © 2024 Zoom Communications, Inc.

  9. Slide 9: Q3 Milestones

    59% QoQ increase in AI Companion Monthly Active Users1 Q3 # of Workvivo customers Milestones grew 72% YoY Surpassed 1,250 Zoom Contact Center customers (82% YoY growth) © 2024 Zoom Communications, Inc. For endnote descriptions, see final slide

  10. Slide 10: Improved growth for Total & Enterprise revenue; lowest ever Online churn

    Improved growth for Total & Enterprise revenue; lowest ever Online churn Total Revenue Enterprise Revenue (in millions) (in millions) 4% 6% Online Average Monthly Churn1 © 2024 Zoom Communications, Inc. For endnote descriptions, see final slide

  11. Slide 11: 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 192.4k Enterprise Customers2 © 2024 Zoom Communications, Inc. For endnote descriptions, see final slide

  12. Slide 12: Growth in EMEA & Americas, FX headwinds in APAC

    Growth in EMEA & Americas, FX headwinds in APAC Revenue1 YoY Growth (in millions) APAC Flat EMEA 5% Americas 4% © 2024 Zoom Communications, Inc. For endnote descriptions, see final slide

  13. Slide 13: Q3 FY25 expenses and margins

    Q3 FY25 expenses and margins GAAP Non-GAAP 1 Yr/Yr Yr/Yr Results Results Revenue $1,178 million 4% $1,178 million 4% Gross Profit 75.9% 27 bps 78.9% 87 bps As a % of Revenue R&D Expense 18.9% 162 bps 11.0% 172 bps S&M Expense 30.7% 222 bps) 23.6% 138 bps) G&A Expense 10.8% 30 bps 5.4% 75

  14. Slide 14: Steady YoY growth in Deferred Revenue & RPO

    Steady YoY growth in Deferred Revenue & RPO Total RPO1 YoY Growth Current2 & Non-Current RPO YoY Growth (in millions) (in millions) Total RPO Total RPO 5% 5% 39% 42% Unbilled Non-Current RPO 5% 3% 61% 58% Deferred Revenue Current RPO 5% 10% © 2024 Zoom Communications, Inc. For endnote descriptions,

  15. Slide 15: Strong cash flow, ~$7.7B cash balance, actively repurchasing shares

    Strong cash flow, ~$7.7B cash balance1, actively repurchasing shares Operating Cash Flow Free Cash Flow2 (in Millions) (in Millions) 2% 1% Shares repurchased in Q3 ~4.4 million © 2024 Zoom Communications, Inc. For endnote descriptions, see final slide

  16. Slide 16: Q4 & Full Fiscal Year 2025 outlook, incremental share repurchase authorization

    Q4 & Full Fiscal Year 2025 outlook, incremental share repurchase authorization Outlook1 Q4 FY25 FY25 Revenue $1,175  $1,180 million $4,656  $4,661 million Revenue $1,174  $1,179 million $4,661  $4,666 million Constant Currency) Non-GAAP Operating $443  $448 million $1,813  $1,818 million Inco

  17. Slide 17: © 2024 Zoom Communications, Inc.

    © 2024 Zoom Communications, Inc.

  18. Slide 18: Thank you

    Thank you © 2024 Zoom Communications, Inc.

  19. Slide 19: Appendix

    Appendix © 2024 Zoom Communications, Inc.

  20. Slide 20: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation $ in Thousands) Q3 FY24 Q3 FY25 Q1Q3 FY24 Q1Q3 FY25 Gross Profit Total Revenue $1,136,727 $1,177,541 $3,380,767 $3,481,295 GAAP Gross Profit $865,739 $893,660 $2,579,273 $2,639,023 (+) Stock-based compensation expense and related payroll taxes $38,672 $33,230 $119,

  21. Slide 21: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation $ in Thousands except EPS Q3 FY24 Q3 FY25 Q1Q3 FY24 Q1Q3 FY25 Operating Profit Total Revenue $1,136,727 $1,177,541 $3,380,767 $3,481,295 GAAP Operating Profit $169,389 $182,840 $356,749 $588,232 (+) Stock-based compensation expense and related payroll taxes $266,0

  22. Slide 22: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation $ in Thousands) Q3 FY24 Q3 FY25 Q1Q3 FY24 Q1Q3 FY25 Free Cash Flow Cash Flow from Operations $493,153 $483,217 $1,247,611 $1,520,742 (-) Purchases of PPE $39,987 $25,484 $108,413 $128,226 Free Cash Flow $453,166 $457,733 $1,139,198 $1,392,516 Operating Cash

  23. Slide 23: Historic Metrics

    Historic Metrics $ in millions) Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Revenue $1,117.8 $1,105.4 $1,138.7 $1,136.7 $1,146.5 $1,141.2 $1,162.5 $1,177.5 Y/Y growth 4% 3% 4% 3% 3% 3% 2% 4% GAAP Income (loss) from operations $129.9 $9.7 $177.6 $169.4 $168.5 $203.0 $202.4 $182

  24. Slide 24: Endnotes

    Endnotes Q3 Milestones Growth in EMEA & Americas, FX headwinds in APAC 1. Monthly Active Users represent the total number of unique users who engage with Zoom AI 1. Subtotals revenue and revenue percent have been rounded. Companion product by using at least one feature of Zoom AI Companion in the pr

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