Slide 1: Zoom Video Communications Q2 FY22 Earnings
Zoom Video Communications Q2 FY22 Earnings August 30, 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: Great wins with industry leaders
Great wins with industry leaders © 2021 Zoom Video Communications, Inc.
Slide 5: Continued strong enterprise traction
Continued strong enterprise traction $1M+ ARR1 customer accounts 77% • Many strong customer adds and upsells • Increased traction in APAC with channel and large customer wins • Strong performance in Zoom Phone and Zoom Rooms 1 ARR stands for Annual Recurring Revenue © 2021 Zoom Video Communications,
Slide 6: Zoom Phone acceleration
Zoom Phone acceleration ● Number of $100k+ ARR 241% customers grew by 241% YoY (32% QoQ) to 317, which includes 21 $1M+ customers1 ● Will reach 2 million seats in August ● 26 customers with 10k+ paid seats as of end of Q2 FY22 (added 8 in H1 FY22) 1 $100k+ and $1M+ ZP ARR customers refer to the tota
Slide 7: Strong revenue growth in Q2
Strong revenue growth in Q2 (in millions) 54% 355% 96% © 2021 Zoom Video Communications, Inc.
Slide 8: Expanding customer base
Expanding customer base Customers generating >$100k in Customers1 with more Revenue Share by trailing 12-month revenue than 10 employees customer cohort 36% 131% 1 The numbers of customers are rounded down to the nearest hundred. © 2021 Zoom Video Communications, Inc.
Slide 9: Strong Net Dollar Expansion Rate
Strong Net Dollar Expansion Rate TTM Net Dollar • 13th consecutive quarter above 130% Expansion Rate1 • Demonstrated ability to land and expand >130% in Q2 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 62% Americas 50% 1 Subtotal revenue has been rounded. © 2021 Zoom Video Communications, Inc.
Slide 11: Q2 FY22 expenses and margins
Q2 FY22 expenses and margins GAAP Non-GAAP1 Results Yr/Yr Results Yr/Yr Revenue $1,021 million 54% $1,021 million 54% Gross Margin 74.4% +340 bps 76.2% +396 bps R & D Margin 8.1% +162 bps 5.3% +99 bps S & M Margin 26.5% +256 bps 20.7% +216 bps G & A Margin 11.0% (126 bps) 8.7% +97 bps Operating Marg
Slide 12: Growing future revenue under contract
Growing future revenue under contract Total RPO1 Yr/Yr Growth Yr/Yr Growth (in millions) Total Total 66% 66% Unbilled Non-Current 74% 85% Deferred Revenue Current 59% 58% 1 Remaining performance Obligations (RPO) consists of both billed considerations and unbilled considerations that we expect to re
Slide 13: Renewal seasonality for annual+ business shifted to Q1
Renewal seasonality for annual+ business shifted to Q1 View from start View from start of FY211 of FY22 Front-weighted renewals seasonality2 will persist for the foreseeable future due to the scale of Zoom’s base and our practice of upselling coterminously with the initial contract 1 Percentages are
Slide 14: Rapid cash flow growth
Rapid cash flow growth Operating Cash Flow Free Cash Flow1 (in millions) (in millions) 17% 22% ~$5.1B in cash, cash equivalents and marketable securities, excluding restricted cash 1 See appendix for a reconciliation of non-GAAP to GAAP financial measures. We define FCF as GAAP net cash provided by ope
Slide 15: Q3 and Fiscal Year 2022 outlook
Q3 and Fiscal Year 2022 outlook Q3 FY22 FY22 Revenue $1,015 - $1,020 million $4,005 - $4,015 million Non-GAAP Operating $340 - $345 million $1,500 - $1,510 million Income Outlook1 Weighted Average Share 309 million 308 million Count Non-GAAP EPS $1.07 - $1.08 $4.75 - $4.79 1 A reconciliation of non-
Slide 16: Financial Analyst Briefing Track
Financial Analyst Briefing Track SEPT 13, 2pm-4pm ET (11am-1pm PT) Register @ zoomtopia.com Note: please © 2021 upgrade Zoom Video yourInc. Communications, Zoom client to join
Slide 17: Q&A
Q A © 2021 Zoom Video Communications, Inc. 17
Slide 18: Thank You
Thank You © 2021 Zoom Video Communications, Inc. © 2021 Zoom Video Communications, Inc. 18
Slide 19: Appendix
Appendix © 2021 Zoom Video Communications, Inc. 19
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Thousands) Q2 FY21 Q2 FY22 H1 FY21 H1 FY22 Gross Profit Total Revenue $663,520 $1,021,495 $991,687 $1,977,732 GAAP Gross Profit $471,249 $760,239 $695,709 $1,451,482 (+) Stock-based compensation expense and related payroll taxes $8,059 $17,557 $11,441 $32,201 (+)
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Thousands except EPS) Q2 FY21 Q2 FY22 H1 FY21 H1 FY22 Operating Profit Total Revenue $663,520 $1,021,495 $991,687 $1,977,732 GAAP Operating Profit $188,104 $294,603 $211,489 $520,915 (+) Stock-based compensation expense and related payroll taxes $61,602 $116,742 $
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Thousands) Q2 FY21 Q2 FY22 H1 FY21 H1 FY22 Free Cash Flow Cash Flow from Operations $401,346 $468,012 $660,311 $1,001,314 (-) Purchases of PPE $(27,981) $(12,975) $(35,253) $(92,049) Free Cash Flow $373,365 $455,037 $625,058 $909,265 Net Cash Used in Investing A
Slide 23: Historic Metrics
Historic Metrics ($ in millions) Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Revenue $166.6 $188.3 $328.2 $663.5 $777.2 $882.5 $956.2 $1,021.5 Y/Y growth 85% 78% 169% 355% 367% 369% 191% 54% GAAP Operating Income $(1.7) $10.6 $23.4 $188.1 $192.2 $256.1 $226.3 $294.6 Stock-based c