Slide 1: Zoom Video Communications Q2 FY25 Earnings
Zoom Video Communications Q2 FY25 Earnings August 21, 2024 © 2024 Zoom Video Communications, Inc.
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,
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 third quarter of fiscal year 2025 and full fis
Slide 4: Reimagine teamwork with an open collaboration platform
Reimagine teamwork with Meetings Team Chat Phone Mail & Calendar Scheduler Clips Whiteboard AI Companion Docs Notes Rooms Workspace Digital Signage Visitor Workvivo Reservation Management An open collaboration platform with Ecosystem Workflows APIs SDKs Apps App Marketplace © 2024 Zoom Video Communi
Slide 5: Zoom Docs
Zoom Docs Supercharge Zoom Workplace collaboration with AI-first docs that transform meeting content into actionable documents, wikis, and projects AI-first Team collaboration Do your best work with your Reduce silos and optimize AI assistant, AI Companion team collaboration At no additional cost with
Slide 6: CX & EX Evolution
CX & EX Evolution Zoom is primed to lead the way On-Premises Contact Center Cloud Contact Center (CCaaS) AI-Powered Total Experience AI-infused unified “Total Experience” Large amount of on-premises point Phase driven by move to cloud, platform to support your brand. solutions lightly integrated. Voi
Slide 7: Our roadmap for AI Companion
Our roadmap for AI Companion Available now Available soon Available later Enhances your Simplifies your Performs your capabilities workday tasks with generative AI through AI-driven automatically on your behalf information flow Trusted Included for all High-performing Open Built on a foundation of tru
Slide 8: Customer traction in Q2 demonstrates our platform evolution
Customer traction in Q2 demonstrates our platform evolution Zoom Workplace Contact Center Contact Center Zoom Workplace Video SDK Workvivo A major North American telco A leading Southeast Asian bank A famed European auto company © 2024 Zoom Video Communications, Inc.
Slide 9: Q2 Milestones
Reached ~1.2 million customer accounts enabling Zoom AI Companion Product only in market for 11 months Q2 69 Workvivo customers with Milestones 100k+ ARR 100% YoY growth Surpassed 1,100 Zoom Contact center customers 100% YoY growth © 2024 Zoom Video Communications, Inc.
Slide 10: Continued top-line expansion in Q2 with positive trends in Enterprise and Online
Continued top-line expansion in Q2 with positive trends in Enterprise and Online Total Revenue Enterprise Revenue (in millions) (in millions) 2% 4% Online Average Monthly Churn1 © 2024 Zoom Video Communications, Inc. For endnote descriptions, see final slide
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 191.6k Enterprise Customers2 © 2024 Zoom Video Communications, Inc. For endnote descriptions, see final slide
Slide 12: Continued growth in Americas, FX headwinds in APAC
Continued growth in Americas, FX headwinds in APAC Revenue1 YoY Growth (in millions) APAC 2% EMEA 0% Americas 3% © 2024 Zoom Video Communications, Inc. For endnote descriptions, see final slide
Slide 13: Q2 FY25 expenses and margins
Q2 FY25 expenses and margins GAAP Non-GAAP1 Yr/Yr Yr/Yr Results Results Revenue $1,163 million 2% $1,163 million 2% Gross Profit 75.5% 111 bps) 78.6% 178 bps) R&D Expense 17.8% 94 bps 10.4% 123 bps S&M Expense 30.9% 193 bps) 23.3% 90 bps G&A Expense 9.4% 194 bps) 5.7% 76 bps Operating Inco
Slide 14: Growing Deferred Revenue and RPO
Growing Deferred Revenue and RPO Total RPO1 YoY Growth Current2 & Non-Current RPO YoY Growth (in millions) (in millions) Total RPO Total RPO 8% 8% 40% 41% Unbilled Non-Current RPO 11% 5% 60% 59% Deferred Revenue Current RPO 3% 10% © 2024 Zoom Video Communications, Inc. For endnote descriptions, see
Slide 15: Strong cash flow, ~$7.5B cash balance, and actively repurchasing shares
Strong cash flow, ~$7.5B cash balance1, and actively repurchasing shares Operating Cash Flow Free Cash Flow2 (in Millions) (in Millions) Shares repurchased 26% 34% in Q2 ~4.8 million © 2024 Zoom Video Communications, Inc. For endnote descriptions, see final slide
Slide 16: Q3 and Fiscal Year 2025 outlook
Q3 and Fiscal Year 2025 outlook Outlook1 Q3 FY25 FY25 Revenue $1,160 $1,165 million $4,630 $4,640 million Total Revenue $1,162 $1,167 million $4,641 $4,651 million Constant Currency) Non-GAAP Operating $438 $443 million $1,790 $1,800 million Income Weighted Average Share 314 million 316
Slide 17: © 2024 Zoom Video Communications, Inc.
© 2024 Zoom Video Communications, Inc.
Slide 18: Thank you
Thank you © 2024 Zoom Video Communications, Inc.
Slide 19: Appendix
Appendix © 2024 Zoom Video Communications, Inc.
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ in Thousands) Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Gross Profit Total Revenue $1,138,676 $1,162,520 $2,244,040 $2,303,754 GAAP Gross Profit $872,117 $877,431 $1,713,534 $1,745,363 (+) Stock-based compensation expense and related payroll taxes $40,590 $33,940 $80,710 $69
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ in Thousands except EPS Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Operating Profit Total Revenue $1,138,676 $1,162,520 $2,244,040 $2,303,754 GAAP Operating Profit $177,618 $202,370 $187,360 $405,392 (+) Stock-based compensation expense and related payroll taxes $269,320 $24
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ in Thousands) Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Free Cash Flow Cash Flow from Operations $335,971 $449,334 $754,458 $1,037,525 (-) Purchases of PPE $46,600 $84,234 $68,426 $102,742 Free Cash Flow $289,371 $365,100 $686,032 $934,783 Operating Cash Flow Margin
Slide 23: Historic Metrics
Historic Metrics $ in millions) Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Revenue $1,101.9 $1,117.8 $1,105.4 $1,138.7 $1,136.7 $1,146.5 $1,141.2 $1,162.5 Y/Y growth 5% 4% 3% 4% 3% 3% 3% 2% GAAP Income (loss) from operations $66.5 $129.9 $9.7 $177.6 $169.4 $168.5 $203.0 $202.
Slide 24: Endnotes
Endnotes Continued top-line expansion in Q2 with positive trends in Enterprise and Continued growth in Americas, FX headwinds in APAC Online 1. Subtotals revenue and revenue percent have been rounded. 1. Zoom calculates online average monthly churn by starting with the Online customer MRR as of the