Slide 1: Zoom Video Communications Q2 FY23 Earnings
Zoom Video Communications Q2 FY23 Earnings August 22, 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 profit, non-GAAP gross margin, non-GAAP R&D expense, non-GAAP S&M expense, non-
Slide 3: Safe Harbor statement
Safe Harbor statement This presentation and the accompanying oral presentation contain express and implied “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Zoom's financial outlook for the third quarter and full fis
Slide 4: Zoom Phone's record quarter demonstrates strength of platform strategy
Zoom Phone’s record quarter demonstrates strength of platform strategy Accounts with 10k+ Paid Seats ● Closed two record-breaking >125k seat deals at end of quarter 112% ● Surpassed 4M Zoom Phone seats in August ● More than doubled number of customers with 10k+ paid seats YoY to 55 4
Slide 5: Customer wins highlight impressive Zoom Phone performance and early Zoom Contact Center adoption
Customer wins highlight impressive Zoom Phone performance and early Zoom Contact Center adoption 5
Slide 6: Continued top-line expansion and strong Enterprise performance
Continued top-line expansion and strong Enterprise performance Total Revenue Enterprise Revenue (in millions) (in millions) 8% 27% 6
Slide 7: Strong growth with new and existing Enterprise customers
Strong growth with new and existing Enterprise customers # of Enterprise # of Customers Contributing >$100k in Customers1 TTM Revenue 18% 37% TTM Net Dollar Expansion Rate for Enterprise Customers2 120% in Q2 FY23 1 The number of customers is rounded down to the nearest hundred. Enterprise Customers
Slide 8: Double-Digit Americas & APAC growth but macro headwinds in EMEA
Double-Digit Americas & APAC growth but macro headwinds in EMEA Revenue1 YoY Growth Revenue Share by (in millions) Region2 APAC 10% EMEA -8% Americas 12% 1,2 Subtotals revenue have been rounded. 8
Slide 9: Q2 FY23 expenses and margins
Q2 FY23 expenses and margins GAAP Non-GAAP1 Results YoY Results YoY Revenue $1,099 million 8% $1,099 million 8% Gross Margin 75.1% +69 bps 78.9% +268 bps R&D Expense 15.7% +764 bps 8.9% +360 bps S&M Expense 36.4% +988 bps 26.0% +533 bps G&A Expense 11.9% +94 bps 8.2% (48 bps) Operating Margin 11.1%
Slide 10: Growing future revenue under contract
Growing future revenue under contract Total RPO1 Current2 & Non-Current RPO (in millions) YoY Growth (in millions) YoY Growth Total Total 37% 37% 39% Unbilled Non-Current 55% 72% 31% 61% 69% Deferred Revenue Current 19% 21% 1 Remaining performance Obligations (RPO) consists of both billed considerat
Slide 11: Strong cash position in Q2
Strong cash position in Q2 Cash Position1 (in billions) Operating Cash Flow $257M OCF Margin 23.4% Adj. Free Cash Flow 2 $222M Adj. FCF Margin 20.2% Cash used for share repurchases (YTD) $426M 1 Cash, cash equivalents and marketable securities, excluding restricted cash at the end of the period. 2 S
Slide 12: Q3 and Fiscal Year 2023 outlook
Q3 and Fiscal Year 2023 outlook Q3 FY23 FY23 Revenue $1,095 - $1,100 million $4,385 - $4,395 million Non-GAAP Operating $325 - $330 million $1,440 - $1,450 million Income Outlook1 Weighted Average Share 306 million 307 million Count Non-GAAP EPS $0.82 - $0.83 $3.66 - $3.69 1 A reconciliation of non-
Slide 13: Investor Day @ Zoomtopia
Investor Day @ Zoomtopia November 8, 11am-2pm PT (2pm-5pm ET) More details will be posted to our IR page
Slide 14: Q&A
Q A © 2021 Zoom Video Communications, Inc. 14
Slide 15: Thank You
Thank You © 2021 Zoom Video Communications, Inc. 15
Slide 16: Appendix
Appendix 16
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Thousands) Q2 FY22 Q2 FY23 H1 FY22 H1 FY23 Gross Profit Total Revenue $1,021,495 $1,099,458 $1,977,732 $2,173,258 GAAP Gross Profit $760,239 $825,847 $1,451,482 $1,637,826 (+) Stock-based compensation expense and related payroll taxes $17,557 $38,576 $32,201 $70,1
Slide 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Thousands except EPS) Q2 FY22 Q2 FY23 H1 FY22 H1 FY23 Operating Profit Total Revenue $1,021,495 $1,099,458 $1,977,732 $2,173,258 GAAP Operating Profit $294,603 $121,743 $520,915 $308,808 (+) Stock-based compensation expense and related payroll taxes $116,742 $262,
Slide 19: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Thousands) Q2 FY22 Q2 FY23 H1 FY22 H1 FY23 Free Cash Flow Cash Flow from Operations $468,012 $257,209 $1,001,314 $783,360 (-) Purchases of PPE $(12,975) $(27,832) $(92,049) $(52,870) (-) Liabilities to employees and tax authorities from international employee st
Slide 20: Historic Metrics
Historic Metrics ($ in millions) Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Revenue $777.2 $882.5 $956.2 $1,021.5 $1,050.8 $1,071.4 $1,073.8 $1,099.5 Y/Y growth 367% 369% 191% 54% 35% 21% 12% 8% GAAP Operating Income $192.2 $256.1 $226.3 $294.6 $290.9 $251.8 $187.1 $121.7 Stock-