Slide 1: Zoom Video Communications Q4 FY23 Earnings
Zoom Video Communications Q4 FY23 Earnings February 27, 2023 © 2023 Zoom Video Communications, Inc.
Slide 2: Use of non-GAAP financial measures
Use of In addition to the financials presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this presentation includes the following non-GAAP metrics: Revenue in Constant Currency, non-GAAP gross profit, non-GAAP gross margin, non-GAAP non-GAAP R&D expense, non-GAAP S&M
Slide 3: Safe Harbor Statement
Safe Harbor 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 first quarter and full fiscal year
Slide 4: FY23 was a year of prolific innovation
FY23 was a year of prolific innovation FEBRUARY APRIL APRIL JUNE NOVEMBER JANUARY Contact Center Zoom IQ for Sales Whiteboard Zoom One Mail & Calendar Virtual Agent CONFIDENTIAL © 2023 Zoom Video Communications, Inc. 4
Slide 5: Zoom's FY24 Strategic Focuses
Zoom’s FY24 Strategic Focuses Redefine Teamwork Empower Smarter Add Value Beyond IT Experiences & Workflows Collaboration and productivity Departmental and industry use cases Artificial intelligence © 2023 Zoom Video Communications, Inc. 5
Slide 6: Seamless connection via our collaboration platform
Employees and Customers Seamless connection via Audiences our collaboration Artificial Intelligence platform Departmental and Industry Solutions Building an easier, more intelligent, and dynamic collaboration platform that unites people to unlock their Platform potential © 2023 Zoom Video Communicati
Slide 7: Customer wins highlight the power of the platform
Customer wins highlight the power of the platform © 2023 Zoom Video Communications, Inc.
Slide 8: Strong FY23 Performance
Strong FY23 Performance 24% 35.9% 27.0% Enterprise Revenue growth Non-GAAP operating margin1 Free cash flow margin1 For endnote descriptions, see last slide © 2023 Zoom Video Communications, Inc. 8
Slide 9: Continued top-line expansion in Q4 in Enterprise and Online
Continued top-line expansion in Q4 with positive trends in Enterprise and Online Total Revenue1 Enterprise Revenue Online Average (in millions) (in millions) Monthly Churn2 Currency Impact 18% 6% 4% For endnote descriptions, see last slide © 2023 Zoom Video Communications, Inc. 9
Slide 10: Strong growth with new and existing Enterprise customers
Strong growth with new and existing Enterprise customers # of Enterprise # of Customers Contributing Customers1 >$100k in TTM Revenue 12% 27% TTM Net Dollar Expansion Rate for Enterprise Customers2 115% in Q4 FY23 For endnote descriptions, see last slide © 2023 Zoom Video Communications, Inc. 10
Slide 11: Double-Digit Americas growth, macro headwinds in ROW
Double-Digit Americas growth, macro headwinds in ROW Revenue1 YoY Growth Revenue Share by (in millions) Region1 APAC -5% EMEA -9% Americas 10% For endnote descriptions, see last slide © 2023 Zoom Video Communications, Inc. 11
Slide 12: Q4 FY23 expenses and margins
Q4 FY23 expenses and margins GAAP1 Non-GAAP2 Results Yr/Yr Results Yr/Yr As a % of Revenue Revenue $1,118 million 4% $1,118 million 4% Gross Profit 73.7% (231 bps) 79.8% +152 bps R&D Expense 23.4% +1,245 bps 9.2% +247 bps S&M Expense 45.2% +1,486 bps 26.9% +350 bps G&A Expense 16.7% +550 bps 7.5% (1
Slide 13: Growing future revenue under contract
Growing future revenue under contract Total RPO1 Current2 & Non-Current (in millions) YoY Growth RPO YoY Growth (in millions) Total Total 30% 44% 30% Unbilled Non-Current 45% 53% 38% 56% 63% Deferred Revenue Current 11% 16% For endnote descriptions, see last slide © 2023 Zoom Video Communications, I
Slide 14: Strong cash flow and position in Q4
Strong cash flow and position in Q4 FY23 Cash Balance Bridge1 (in millions) Operating Cash Flow $212M OCF Margin 18.9% Free Cash Flow $183M FCF Margin2 16.4% For endnote descriptions, see last slide © 2023 Zoom Video Communications, Inc. 14
Slide 15: Q1 and Fiscal Year 2024 outlook
Q1 and Fiscal Year 2024 outlook Q1 FY24 FY24 Revenue $1,080 - $1,085 million $4,435 - $4,455 million Total Revenue $1,097 - $1,102 million $4,458 - $4,478 million (Constant Currency) Non-GAAP Operating Outlook1 $374 - $379 million $1,606 - $1,626 million Income Weighted Average Share 304 million 309
Slide 16: © 2023 Zoom Video Communications, Inc.
© 2023 Zoom Video Communications, Inc.
Slide 17: © 2023 Zoom Video Communications, Inc.
© 2023 Zoom Video Communications, Inc. 17
Slide 18: Thank you
Thank you © 2023 Zoom Video Communications, Inc. 18
Slide 19: Appendix
Appendix © 2023 Zoom Video Communications, Inc. 19
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Thousands) Q4 FY22 Q4 FY23 FY22 FY23 Gross Profit Total Revenue $1,071,376 $1,117,803 $4,099,864 $4,392,960 GAAP Gross Profit $814,029 $823,449 $3,045,310 $3,292,509 (+) Stock-based compensation expense and related payroll taxes $23,890 $65,308 $73,863 $177,330
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Thousands except EPS) Q4 FY22 Q4 FY23 FY22 FY23 Operating Profit Total Revenue $1,071,376 $1,117,803 $4,099,864 $4,392,960 GAAP Operating Profit $251,819 $(129,887) $1,063,591 $245,429 (+) Stock-based compensation expense and related payroll taxes $164,511 $520,
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Thousands) Q4 FY22 Q4 FY23 FY22 FY23 Free Cash Flow Cash Flow from Operations $209,396 $211,588 $1,605,266 $1,290,262 (-) Purchases of PPE $(20,774) $(28,258) $(132,590) $(103,826) Free Cash Flow $188,622 $183,330 $1,472,676 $1,186,436 Operating Cash Flow Margin
Slide 23: Historic Metrics
Historic Metrics ($ in millions) Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Revenue $956.2 $1,021.5 $1,050.8 $1,071.4 $1,073.8 $1,099.5 $1,101.9 $1,117.8 Y/Y growth 191% 54% 35% 21% 12% 8% 5% 4% GAAP Operating Income $226.3 $294.6 $290.9 $251.8 $187.1 $121.7 $66.5 $(129.9) Stock
Slide 24: Endnotes
Endnotes Slide 8 Slide 12 1. See appendix for a reconciliation of non-GAAP to GAAP financial measures. 1. The GAAP results include an unrecognized stock-based compensation cost related to the sunsetting of our supplemental grant program of $207.7 million, which both carries no dilutive impact nor ta