Slide 1: Zoom Video Communications Q2 FY21 Earnings
Zoom Video Communications Q2 FY21 Earnings August 31, 2020 © 2020 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 ope
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 Video Communications Q2 FY21 Earnings
Zoom Video Communications Q2 FY21 Earnings August 31, 2020 © 2020 Zoom Video Communications, Inc. 4
Slide 5: Strong Q2 FY21 Performance
Strong Q2 FY21 Performance 355% 458% 35k+ Yr/Yr Yr/Yr Revenue Growth Growth in Customers with Participants in virtual > 10 employees Zoom Academy © 2020 Zoom Video Communications, Inc. 5
Slide 6: Business and Technology Highlights
Business and Technology Highlights ➢Completion of 90-day plan on security and privacy ➢Launch of Zoom Hardware as a Service with subscription options for phone and meeting room hardware to help customers minimize friction around hardware procurement ➢Launch of Zoom for Home to support remote work us
Slide 7: New and Existing Zoom Customers
New and Existing Zoom Customers © 2020 Zoom Video Communications, Inc. 7
Slide 8: Rapid Revenue Growth
Rapid Revenue Growth (in Millions) © 2020 Zoom Video Communications, Inc. 8
Slide 9: Enterprise Traction
Enterprise Traction Growth in customers generating >$100K in trailing 12-month revenue © 2020 Zoom Video Communications, Inc. 9
Slide 10: Rapidly Growing Customer Base
Rapidly Growing Customer Base Customers1 with more than 10 employees Q2’21: 36% Q1’21: 30% Revenue from customers with 10 or fewer employees © 2020 Zoom Video Communications, Inc. 1The numbers of customers are rounded down to the nearest hundred. 10
Slide 11: Strong Q2 Net Dollar Expansion Rate
Strong Q2 Net Dollar Expansion Rate TTM Net Dollar • 9th consecutive quarter above 130% Expansion Rate1 • Demonstrated ability to Land and Expand +130% • Reflects trust and loyalty with existing customers in Q2 FY21 1We calculate net dollar expansion rate as of a period end by starting with the ARR
Slide 12: Growing International Presence
Growing International Presence Yr/Yr ROW 629% Americas 288% © 2020 Zoom Video Communications, Inc. 1Subtotal revenue has been rounded. 12
Slide 13: Q2 FY21 Expenses and Margins
Q2 FY21 Expenses and Margins Q2 FY21 GAAP Non-GAAP1 Yr/Yr Yr/Yr Results Results Revenue $664 million 355% $664 million 355% Gross Margin 71.0% (985bps) 72.3% (993bps) As a % of Revenue Research & Development 6.4% (388bps) 4.3% (430bps) Sales & Marketing 24.0% (3,063bps) 18.5% (2,871bps) General & Ad
Slide 14: Growing Future Revenue under Contract
Growing Future Revenue under Contract Yr/Yr Yr/Yr 131% 144% 257% 309% 1 Remaining performance Obligations (RPO) consists of both billed considerations and unbilled considerations that we expect to © 2020 Zoom Video Communications, Inc. recognize as revenue, which grew 209% year-over-year. We expect
Slide 15: Rapid Cash Flow Growth
Rapid Cash Flow Growth 1 See appendix for a reconciliation of non-GAAP to GAAP financial measures. We define FCF as GAAP net cash provided by operating a ctivities less purchases of © 2020 Zoom Video Communications, Inc. property and equipment. We ended Q2’21 with approximately $1.5 billion dollars
Slide 16: Q3 FY21 and Full Year Outlook
Q3 FY21 and Full Year Outlook Q3 FY21 FY21 Revenue $685 - $690 million $2,370 - $2,390 million Non-GAAP Operating Income $225 - $230 million $730 - $750 million Outlook1 Weighted Average Share Count 300 million 300 million Non-GAAP EPS $0.73 - $0.74 $2.40 - $2.47 1 A reconciliation of non-GAAP guida
Slide 17: © 2020 Zoom Video Communications, Inc.
© 2020 Zoom Video Communications, Inc. 17
Slide 18: Questions
Questions
Slide 19: Thank you
Thank you
Slide 20: Appendix
Appendix
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Gross Profit ($ in thousands) QTD – Q2FY20 QTD – Q2FY21 YTD – Q2FY20 YTD – Q2FY21 Total Revenue $145,826 $663,520 $267,814 $991,687 GAAP Gross Profit $117,926 $471,249 $215,810 $695,709 (+) Stock-based compensation expense and related payroll taxes $1,922 $8,059 $2,75
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Operating Margin ($ in thousands) QTD – Q2FY20 QTD – Q2FY21 YTD – Q2FY20 YTD – Q2FY21 Total revenue $145,826 $663,520 $267,814 $991,687 GAAP operating profit $2,265 $188,104 $3,822 $211,489 (+) Stock-based compensation expense and related payroll taxes $18,469 $61,602
Slide 23: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Free Cash Flow ($ in thousands) QTD – Q2FY20 QTD – Q2FY21 YTD – Q2FY20 YTD – Q2FY21 Cash flow from operations $31,172 $401,346 $53,408 $660,311 (-) Purchases of PPE $14,040 $27,981 $20,937 $35,253 Free cash flow $17,132 $373,365 $32,471 $625,058 © 2020 Zoom Video Comm
Slide 24: Historic Metrics
Historic Metrics © 2020 Zoom Video Communications, Inc. 24