Zoom Communications, Inc. · NASDAQ:ZM
Zoom Communications — Q4 FY22 Earnings Presentation
23 slides from Zoom Communications's earnings presentation, Feb 28, 2022
Slide 1: Zoom Video Communications Q4 FY22 Earnings
Zoom Video Communications Q4 FY22 Earnings February 28, 2022 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: Zoom's Strategic Pillars
Zoom’s Strategic Pillars Unified Communications Hybrid Work Business Workflows 4
Slide 5: Zoom Introduces Contact Center
Zoom Introduces Contact Center ~$18B Total addressable market by 2024 according to Gartner®1 1 Gartner®: Forecast Analysis: Contact Center, Worldwide, by Daniel O'Connell, Megan Fernandez, 19 January 2021 5
Slide 6: Thank you, Medtronic, Intuit, ASU, and LIXIL!
Thank you, Medtronic, Intuit, ASU, and LIXIL! 6
Slide 7: Strong FY22 Performance
Strong FY22 Performance 55% 40.4% 38.0% Yr/Yr Revenue Growth Non-GAAP Adjusted Free Cash Flow Operating Margin1 Margin2 1, 2 See appendix for a reconciliation of non-GAAP to GAAP financial measures. 7
Slide 8: Strong revenue growth
Strong revenue growth (in millions) Total Revenue1 Zoom Phone Highlights 21% ● Achieved milestone quarter, closing over 550k seats ● Number of $100k+ ARR customers grew by 149% YoY to 498 ● Reached 40 customers with 10k+ paid seats in Q4, up 122% YoY ● Closed a global bank for 27k Zoom Phone license
Slide 9: Expanding customer base
Expanding customer base Customers contributing >$100k in Customers1 with more trailing 12-months revenue than 10 employees 9% 66% 1 The number of customers is rounded down to the nearest hundred. 9
Slide 10: Introducing new metrics for our larger scale
Introducing new metrics for our larger scale Enterprise (Direct, Channel & ISV) Online Definition Customers who have been engaged by Zoom’s direct sales team, channel partners Customers self-serviced through our online or independent software vendor (ISV) channel partners General ● Highly retentive C
Slide 11: Strong growth in Enterprise
Strong growth in Enterprise Revenue Share by Enterprise Customers1 Customer Category 35% TTM Net Dollar Expansion Rate for Enterprise Customers2 130% in Q4 FY22 1 The number of customers is rounded down to the nearest hundred. Enterprise Customers refers to customers who have been engaged by Zoom’s
Slide 12: Growing international presence
Growing international presence Revenue1 Yr/Yr Growth Revenue Share by (in millions) Region2 ROW 23% Americas 21% 1,2 Subtotals revenue have been rounded. 12
Slide 13: Q4 FY22 expenses and margins
Q4 FY22 expenses and margins GAAP Non-GAAP1 Results Yr/Yr Results Yr/Yr Revenue $1,071 million 21% $1,071 million 21% Gross Margin 76.0% +627 bps 78.3% +699 bps R&D Expense 10.9% +499 bps 6.7% +323 bps S&M Expense 30.4% +612 bps 23.4% +539 bps G&A Expense 11.2% +68 bps 8.9% +4 bps Operating Margin 2
Slide 14: 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 69% 87% Deferred Revenue Current 34% 36% 1 Remaining performance Obligations (RPO) consists of both billed considerations and unbilled considerations that we expect to re
Slide 15: Strong cash flow and position in Q4
Strong cash flow and position in Q4 Cash Position1 (in billions) $209M in Operating Cash Flow $274M in Adjusted 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 meas
Slide 16: Q1 and Fiscal Year 2023 outlook
Q1 and Fiscal Year 2023 outlook Q1 FY23 FY23 Revenue $1,070 - $1,075 million $4,530 - $4,550 million Non-GAAP Operating $345 - $350 million $1,430 - $1,450 million Income Outlook1 Weighted Average Share 309 million 312 million Count Non-GAAP EPS $0.86 - $0.88 $3.45 - $3.51 1 A reconciliation of non-
Slide 17: Q&A
Q A © 2021 Zoom Video Communications, Inc. 17
Slide 18: Thank You
Thank You © 2021 Zoom Video Communications, Inc. 18
Slide 19: Appendix
Appendix 19
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Thousands) Q4 FY21 Q4 FY22 FY21 FY22 Gross Profit Total Revenue $882,485 $1,071,376 $2,651,368 $4,099,864 GAAP Gross Profit $615,201 $814,029 $1,829,379 $3,045,310 (+) Stock-based compensation expense and related payroll taxes $13,162 $23,890 $36,223 $73,863 (+) A
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Thousands except EPS) Q4 FY21 Q4 FY22 FY21 FY22 Operating Profit Total Revenue $882,485 $1,071,376 $2,651,368 $4,099,864 GAAP Operating Profit $256,117 $251,819 $659,848 $1,063,591 (+) Stock-based compensation expense and related payroll taxes $101,853 $164,511 $2
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Thousands) Q4 FY21 Q4 FY22 FY21 FY22 Free Cash Flow Cash Flow from Operations $399,396 $209,396 $1,471,177 $1,605,266 (-) Purchases of PPE $(21,455) $(20,774) $(79,972) $(132,590) Free Cash Flow (non-GAAP) $377,941 $188,622 $1,391,205 $1,472,676 (+) Litigation s
Slide 23: Historic Metrics
Historic Metrics ($ in millions) Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Revenue $328.2 $663.5 $777.2 $882.5 $956.2 $1,021.5 $1,050.8 $1,071.4 Y/Y growth 169% 355% 367% 369% 191% 54% 35% 21% GAAP Operating Income $23.4 $188.1 $192.2 $256.1 $226.3 $294.6 $290.9 $251.8 Stock-ba