Slide 1: Zoom Video Communications Q3 FY22 Earnings
Zoom Video Communications Q3 FY22 Earnings November 22, 2021 © 2021 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 opera
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: Hosted on Zoom Events, nearly 34K live virtual attendees
➢ Hosted on Zoom Events, nearly 34K live virtual attendees (up 30% from last year) ➢ Highlighted many customers and partners with 277 speakers ➢ Showcased customers using Zoom to enable hybrid workforces, and grow their businesses ➢ Unveiled Video Engagement Center, Whiteboard, and much more
Slide 5: Thank you, Carrier!
Thank you, Carrier! © 2021 Zoom Video Communications, Inc. 5
Slide 6: Strong Wins and Expansions
Strong Wins and Expansions A leading global retail brand +20k Phone seats A global tech firm +16.5k Meetings licenses Big 4 audit & Big 3 consulting customers +35k Meetings licenses © 2021 Zoom Video Communications, Inc. 6
Slide 7: Strong revenue growth
Strong revenue growth (in millions) ● Zoom Phone saw 35% triple-digit YoY revenue Q3’22: 26% growth Q3’21: 19% of YoY incremental ● Zoom Phone reached 30 revenue from customers with 10k+ existing customers paid seats in Q3 FY22 ● Strong growth in Zoom Rooms 1 ARR stands for Annual Recurring Revenue
Slide 8: Expanding customer base
Expanding customer base Customers contributing >$100k in Customers2 with more Revenue Share by trailing 12-months revenue1 than 10 employees customer cohort 18% 94% 1 The revenue from these customers represented 22% and 18% of total revenue for Q3 FY22 and Q3 FY21, respectively. 2 © 2021 Zoom Video
Slide 9: Strong Net Dollar Expansion Rate
Strong Net Dollar Expansion Rate TTM Net Dollar • 14th consecutive quarter above 130% Expansion Rate1 >130% • Demonstrated ability to land and expand in Q3 FY22 • Reflects trust and loyalty with existing customers 1 We calculate net dollar expansion rate as of a period end by starting with the ARR fr
Slide 10: Growing international presence
Growing international presence Revenue1 Yr/Yr Growth Revenue Share by (in millions) Region1 ROW 47% Americas 30% 1 Subtotal revenue has been rounded. © 2021 Zoom Video Communications, Inc.
Slide 11: Q3 FY22 expenses and margins
Q3 FY22 expenses and margins GAAP Non-GAAP1 Results Yr/Yr Results Yr/Yr Revenue $1,051 million 35% $1,051 million 35% Gross Margin 74.2% +750 bps 76.0% +774 bps R&D Expense 9.4% +390 bps 6.4% +320 bps S&M Expense 28.0% +348 bps 22.6% +444 bps G&A Expense 9.2% (282 bps) 7.8% (163 bps) Operating Margi
Slide 12: Growing future revenue under contract
Growing future revenue under contract Total RPO1 Yr/Yr Growth Yr/Yr Growth (in millions) Total Total 51% 51% Unbilled Non-Current 64% 82% Deferred Revenue Current 39% 38% 1 Remaining performance Obligations (RPO) consists of both billed considerations and unbilled considerations that we expect to re
Slide 13: Strong cash flow and position in Q3
Strong cash flow and position in Q3 Cash Position1 (in billions) $395M in Operating Cash Flow $375M in Free Cash Flow2 1 Cash, cash equivalents and marketable securities, excluding restricted cash at the end of the period. 2 See appendix for a reconciliation of non-GAAP to GAAP financial measures. We
Slide 14: Q4 and Fiscal Year 2022 outlook
Q4 and Fiscal Year 2022 outlook Q4 FY22 FY22 Revenue $1,051 - $1,053 million $4,079 - $4,081 million Non-GAAP Operating $361 - $363 million $1,598 - $1,600 million Income Outlook1 Weighted Average Share 307 million 306 million Count Non-GAAP EPS $1.06 - $1.07 $4.84 - $4.85 1 A reconciliation of non-
Slide 15: Q&A
Q A © 2021 Zoom Video Communications, Inc. 15
Slide 16: Thank You
Thank You © 2021 Zoom Video Communications, Inc. © 2021 Zoom Video Communications, Inc. 16
Slide 17: Appendix
Appendix © 2021 Zoom Video Communications, Inc. 17
Slide 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Thousands) Q3 FY21 Q3 FY22 Q1-Q3 FY21 Q1-Q3 FY22 Gross Profit Total Revenue $777,196 $1,050,756 $1,768,883 $3,028,488 GAAP Gross Profit $518,469 $779,799 $1,214,178 $2,231,281 (+) Stock-based compensation expense and related payroll taxes $11,620 $17,772 $23,061 $
Slide 19: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Thousands except EPS) Q3 FY21 Q3 FY22 Q1-Q3 FY21 Q1-Q3 FY22 Operating Profit Total Revenue $777,196 $1,050,756 $1,768,883 $3,028,488 GAAP Operating Profit $192,242 $290,857 $403,731 $811,772 (+) Stock-based compensation expense and related payroll taxes $97,131 $1
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Thousands) Q3 FY21 Q3 FY22 Q1-Q3 FY21 Q1-Q3 FY22 Free Cash Flow Cash Flow from Operations $411,470 $394,556 $1,071,781 $1,395,870 (-) Purchases of PPE $(23,264) $(19,767) $(58,517) $(111,816) Free Cash Flow $388,206 $374,789 $1,013,264 $1,284,054 Net Cash Used i
Slide 21: Historic Metrics
Historic Metrics ($ in millions) Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Revenue $188.3 $328.2 $663.5 $777.2 $882.5 $956.2 $1,021.5 $1,050.8 Y/Y growth 78% 169% 355% 367% 369% 191% 54% 35% GAAP Operating Income $10.6 $23.4 $188.1 $192.2 $256.1 $226.3 $294.6 $290.9 Stock-based