Slide 1: Zoom Video Communications Q1 FY22 Earnings
Zoom Video Communications Q1 FY22 Earnings June 1, 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: © 2021 Zoom Video Communications, Inc.
© 2021 Zoom Video Communications, Inc.
Slide 6: Introducing Zoom Phone Appliance
Introducing Zoom Phone Appliance Poly CCX 600 w/Camera Yealink VP59 Stay Tuned for More Information! © 2021 Zoom Video Communications, Inc. Poly CCX 700
Slide 7: Recognized for innovation, security, culture, and influence
Recognized for innovation, security, culture, and influence © 2021 Zoom Video Communications, Inc.
Slide 8: Strong revenue growth in Q1
Strong revenue growth in Q1 (in millions) 191% 169% © 2021 Zoom Video Communications, Inc.
Slide 9: Customer base growing rapidly
Customer base growing rapidly Customers generating >$100K in Customers1 with more Revenue Share by trailing 12-month revenue than 10 employees Customer Cohort 87% 160% 1 The numbers of customers are rounded down to the nearest hundred. © 2021 Zoom Video Communications, Inc.
Slide 10: Strong Net Dollar Expansion Rate
Strong Net Dollar Expansion Rate TTM Net Dollar • 12th consecutive quarter above 130% Expansion Rate1 • Demonstrated ability to land and expand >130% in Q1FY22 • Reflects trust and loyalty with existing customers 1 We calculate net dollar expansion rate as of a period end by starting with the ARR fro
Slide 11: Growing international presence
Growing international presence Revenue1 Yr/Yr Growth Revenue Share by (in millions) Region1 ROW 288% Americas 159% 1 Subtotal revenue has been rounded. © 2021 Zoom Video Communications, Inc.
Slide 12: Q1 FY22 expenses and margins
Q1 FY22 expenses and margins GAAP Non-GAAP1 Results Yr/Yr Results Yr/Yr Revenue $956 million 191% $956 million 191% Gross Margin 72.3% +389 bps 73.9% +446 bps R & D Margin 6.8% (123 bps) 4.3% (207 bps) S & M Margin 25.7% (1,135 bps) 20.0% (1,158 bps) G & A Margin 16.1% (8 bps) 7.7% (716 bps) Operati
Slide 13: Growing future revenue under contract
Growing future revenue under contract Total RPO1 Yr/Yr Growth Yr/Yr Growth (in millions) Unbilled Non-Current 90% 96% Deferred Revenue Current 98% 93% 1 Remaining performance Obligations (RPO) consists of both billed considerations and unbilled considerations that we expect to recognize as revenue,
Slide 14: Rapid cash flow growth
Rapid cash flow growth Operating Cash Flow Free Cash Flow1 (in millions) (in millions) 80% 106% 1 See appendix for a reconciliation of non-GAAP to GAAP financial measures. We define FCF as GAAP net cash provided by operating activities less purchases of property and equipment. We ended Q1’22 with appro
Slide 15: Q2 and Fiscal Year 2022 outlook
Q2 and Fiscal Year 2022 outlook Q2 FY22 FY22 Revenue $985 - $990 million $3,975 - $3,990 million Non-GAAP Operating $355 - $360 million $1,425 - $1,440 million Income Outlook1 Weighted Average Share 311 million 311 million Count Non-GAAP EPS $1.14 - $1.15 $4.56 - $4.61 1 A reconciliation of non-GAAP
Slide 16: Progressing in our ESG journey
Progressing in our ESG journey Released first annual Social Impact Report and launched ESG Website Product ● 125,000 K-12, primary, and secondary school domains in 25 countries received Zoom’s education service for free ● 95 billion minutes of free meeting access provided to K-12, primary, and second
Slide 17: Q&A
Q A © 2021 Zoom Video Communications, Inc. 17
Slide 18: Thank You
Thank You © 2021 Zoom Video Communications, Inc. © 2021 Zoom Video Communications, Inc. 18
Slide 19: Appendix
Appendix © 2021 Zoom Video Communications, Inc. 19
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Thousands) Q1 FY21 Q1 FY22 Gross Profit Total Revenue $328,167 $956,237 GAAP Gross Profit $224,460 $691,243 (+) Stock-based compensation expense and related payroll taxes $3,382 $14,644 (+) Acquisition-related expense - $692 Non-GAAP Gross Profit $227,842 $706,579
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Thousands except EPS) Q1 FY21 Q1 FY22 Operating Profit Total Revenue $328,167 $956,237 GAAP Operating Profit $23,385 $226,312 (+) Stock-based compensation expense and related payroll taxes $30,246 $104,375 (+) Litigation settlements, net - $66,916 (+) Charitable d
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Thousands) Q1 FY21 Q1 FY22 Free Cash Flow Cash Flow from Operations $258,965 $533,302 (-) Purchases of PPE $(7,272) $(79,074) Free Cash Flow $251,693 $454,228 Net Cash Used in Investing Activities $(63,034) $(1,219,978) Net Cash Provided by (Used in) Financing A
Slide 23: Historic Metrics
Historic Metrics ($ in millions) Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Revenue $145.8 $166.6 $188.3 $328.2 $663.5 $777.2 $882.5 $956.2 Y/Y growth 96% 85% 78% 169% 355% 367% 369% 191% GAAP Operating Income $2.3 $(1.7) $10.6 $23.4 $188.1 $192.2 $256.1 $226.3 Stock-based compe