Zoom Video Communications, Inc. (NASDAQ: ZM), today announced
financial results for the second fiscal quarter ended July 31,
2022.
“In Q2, we continued to gain traction as the platform of choice
for enterprises looking to deliver flexible, productive solutions
for collaboration and customer engagement,” said Zoom founder and
CEO, Eric S. Yuan. “Businesses are drawn to the Zoom platform
because of our innovation and modern architecture. Our recently
launched Zoom Contact Center and Zoom IQ for Sales products saw
some great early wins while Zoom Phone delivered milestone results,
hitting a record number of licenses sold in the quarter and
reaching nearly 4 million seats, up more than 100% year over
year.”
“In Q2, we delivered our fifth straight quarter with revenue of
over one billion dollars. While we saw continued momentum with our
Enterprise customers and our non-GAAP operating income came in
meaningfully higher than our outlook, our revenue was impacted by
the strengthening of the U.S. dollar, performance of the online
business, and to a lesser extent sales weighted to the backend of
the quarter,” said Zoom CFO, Kelly Steckelberg. “Consequently, we
are now expecting to deliver FY23 revenue in the range of $4.385
billion to $4.395 billion. We remain focused on operational
discipline, and continue to expect non-GAAP operating margin of
approximately 33%.”
Second Quarter Fiscal Year 2023 Financial
Highlights:
- Revenue: Total revenue for the second quarter
was $1,099.5 million, up 8% year over year.
- Income from Operations and Operating Margin:
GAAP income from operations for the second quarter was
$121.7 million, compared to GAAP income from operations of
$294.6 million in the second quarter of fiscal year 2022. After
adjusting for stock-based compensation expense and related payroll
taxes, and acquisition-related expenses, non-GAAP income from
operations for the second quarter was $393.7 million, compared to
non-GAAP income from operations of $424.7 million in the second
quarter of fiscal year 2022. For the second quarter, GAAP operating
margin was 11.1% and non-GAAP operating margin was 35.8%.
- Net Income and Diluted Net Income Per Share:
GAAP net income attributable to common stockholders for the second
quarter was $45.7 million, or $0.15 per share, compared to GAAP net
income attributable to common stockholders of $316.9 million, or
$1.04 per share in the second quarter of fiscal year 2022.Non-GAAP
net income for the second quarter was $323.5 million, after
adjusting for stock-based compensation expense and related payroll
taxes, losses (gains) on strategic investments, net,
acquisition-related expenses, undistributed earnings attributable
to participating securities, and the tax effects on non-GAAP
adjustments. Non-GAAP net income per share was $1.05. In the second
quarter of fiscal year 2022, non-GAAP net income was
$415.1 million, or $1.36 per share.
- Cash and Marketable Securities: Total cash,
cash equivalents, and marketable securities, excluding restricted
cash, as of July 31, 2022 was $5.5 billion.
- Cash Flow: Net cash provided by operating
activities was $257.2 million for the second quarter, compared to
$468.0 million in the second quarter of fiscal year 2022.
Adjusted free cash flow, which is net cash provided by operating
activities less purchases of property and equipment, plus
litigation settlement payments, net, was $222.1 million,
compared to $455.0 million in the second quarter of fiscal
year 2022.
Customer Metrics: Drivers of total revenue
included acquiring new customers and expanding across existing
customers. At the end of the second quarter of fiscal year 2023,
Zoom had:
- Approximately 204,100 Enterprise customers, up 18% from the
same quarter last fiscal year.
- A trailing 12-month net dollar expansion rate for Enterprise
customers of 120%.
- 3,116 customers contributing more than $100,000 in trailing 12
months revenue, up approximately 37% from the same quarter last
fiscal year.
Financial Outlook: Zoom is providing the
following guidance for its third quarter fiscal year 2023 and its
full fiscal year 2023.
- Third Quarter Fiscal Year 2023: Total revenue is expected to be
between $1.095 billion and $1.100 billion and non-GAAP income from
operations is expected to be between $325.0 million and $330.0
million. Non-GAAP diluted EPS is expected to be between $0.82
and $0.83 with approximately 306 million weighted average
shares outstanding.
- Full Fiscal Year 2023: Total revenue is expected to be between
$4.385 billion and $4.395 billion. Full fiscal year non-GAAP income
from operations is expected to be between $1.440 billion and $1.450
billion. Full fiscal year non-GAAP diluted EPS is expected to be
between $3.66 and $3.69 with approximately 307 million
weighted average shares outstanding.
Additional information on Zoom's reported results, including a
reconciliation of the non-GAAP results to their most comparable
GAAP measures, is included in the financial tables below. A
reconciliation of non-GAAP guidance measures to corresponding GAAP
measures is not available on a forward-looking basis without
unreasonable effort due to the uncertainty of expenses that may be
incurred in the future, although it is important to note that these
factors could be material to Zoom's results computed in accordance
with GAAP.
A supplemental financial presentation and other information can
be accessed through Zoom’s investor relations website at
investors.zoom.us.
Zoom Video Earnings Call
Zoom will host a Zoom Video Webinar for investors on
August 22, 2022 at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern
Time to discuss the company’s financial results, business
highlights and financial outlook. Investors are invited to join the
Zoom Video Webinar by visiting: https://investors.zoom.us/
About Zoom
Zoom is for you. Zoom is a space where you can connect to
others, share ideas, make plans, and build toward a future limited
only by your imagination. Our frictionless communications platform
is the only one that started with video as its foundation, and we
have set the standard for innovation ever since. That is why we are
an intuitive, scalable, and secure choice for large enterprises,
small businesses, and individuals alike. Founded in 2011, Zoom is
publicly traded (NASDAQ:ZM) and headquartered in San Jose,
California. Visit zoom.com and follow @zoom.
Forward-Looking Statements
This press release contains 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 of fiscal year 2023 and full fiscal
year 2023, Zoom’s market position, opportunities, and growth
strategy, product initiatives and go-to market motions and the
expected benefits resulting from the same, and market trends. In
some cases, you can identify forward-looking statements by terms
such as “anticipate,” “believe,” “estimate,” “expect,” “intend,”
“may,” “might,” “plan,” “project,” “will,” “would,” “should,”
“could,” “can,” “predict,” “potential,” “target,” “explore,”
“continue,” or the negative of these terms, and similar expressions
intended to identify forward-looking statements. By their nature,
these statements are subject to numerous uncertainties and risks,
including factors beyond our control, that could cause actual
results, performance or achievement to differ materially and
adversely from those anticipated or implied in the statements,
including: declines in new customers and hosts, renewals or
upgrades, difficulties in evaluating our prospects and future
results of operations given our limited operating history,
competition from other providers of communications platforms,
continued uncertainty regarding the extent and duration of the
impact of COVID-19 and the responses of government and private
industry thereto, including the potential effect on our user growth
rate as the impact of the COVID-19 pandemic tapers, particularly as
users return to work or school or are otherwise no longer subject
to limitations on in-person meetings, as well as the impact of
COVID-19 and other macroeconomic conditions, including inflation,
on the overall economic environment, any or all of which will have
an impact on demand for remote work solutions for businesses as
well as overall distributed, face-to-face interactions and
collaboration using Zoom, delays or outages in services from our
co-located data centers, failures in internet infrastructure or
interference with broadband access which could cause current or
potential users to believe that our systems are unreliable, market
volatility, and global security concerns and their potential impact
on regional and global economies and supply chains. Additional
risks and uncertainties that could cause actual outcomes and
results to differ materially from those contemplated by the
forward-looking statements are included under the caption “Risk
Factors” and elsewhere in our most recent filings with the
Securities and Exchange Commission (the “SEC”), including our
quarterly report on Form 10-Q for the fiscal quarter ended April
30, 2022. Forward-looking statements speak only as of the date
the statements are made and are based on information available to
Zoom at the time those statements are made and/or management's good
faith belief as of that time with respect to future
events. Zoom assumes no obligation to update forward-looking
statements to reflect events or circumstances after the date they
were made, except as required by law.
Non-GAAP Financial Measures
Zoom has provided in this press release financial information
that has not been prepared in accordance with generally accepted
accounting principles in the United States (“GAAP”). Zoom uses
these non-GAAP financial measures internally in analyzing its
financial results and believes that use of these non-GAAP financial
measures is useful to investors as an additional tool to evaluate
ongoing operating results and trends and in comparing Zoom’s
financial results with other companies in its industry, many of
which present similar non-GAAP financial measures.
Non-GAAP financial measures are not meant to be considered in
isolation or as a substitute for comparable GAAP financial measures
and should be read only in conjunction with Zoom’s condensed
consolidated financial statements prepared in accordance with GAAP.
A reconciliation of Zoom’s historical non-GAAP financial measures
to the most directly comparable GAAP measures has been provided in
the financial statement tables included in this press release, and
investors are encouraged to review the reconciliation.
Non-GAAP Income From Operations and Non-GAAP Operating Margin.
Zoom defines non-GAAP income from operations as income from
operations excluding stock-based compensation expense and related
payroll taxes, acquisition-related expenses, and litigation
settlements, net. Zoom excludes stock-based compensation expense
because it is non-cash in nature and excluding this expense
provides meaningful supplemental information regarding Zoom’s
operational performance and allows investors the ability to make
more meaningful comparisons between Zoom’s operating results and
those of other companies. Zoom excludes the amount of employer
payroll taxes related to employee stock plans, which is a cash
expense, in order for investors to see the full effect that
excluding stock-based compensation expense had on Zoom's operating
results. In particular, this expense is dependent on the price of
our common stock and other factors that are beyond our control and
do not correlate to the operation of the business. Zoom views
acquisition-related expenses when applicable, such as amortization
of acquired intangible assets, transaction costs, and
acquisition-related retention payments that are directly related to
business combinations as events that are not necessarily reflective
of operational performance during a period. Zoom excludes
significant litigation settlements, net of amounts covered by
insurance, that we deem not to be in the ordinary course of our
business. In particular, Zoom believes the consideration of
measures that exclude such expenses can assist in the comparison of
operational performance in different periods which may or may not
include such expenses and assist in the comparison with the results
of other companies in the industry.
Non-GAAP Net Income and Non-GAAP Net Income Per Share, Basic and
Diluted. Zoom defines non-GAAP net income and non-GAAP net income
per share, basic and diluted, as GAAP net income attributable to
common stockholders and GAAP net income per share attributable to
common stockholders, basic and diluted, respectively, adjusted to
exclude stock-based compensation expense and related payroll taxes,
acquisition-related expenses, gains/losses on strategic
investments, net, litigation settlements, net, and undistributed
earnings attributable to participating securities, including the
tax effects of all non-GAAP adjustments. Zoom excludes gains on
strategic investments, net because given the size and volatility in
the ongoing adjustments to the valuation of our strategic
investments, we believe that excluding these gains or losses
facilitates a more meaningful evaluation of our operational
performance. Zoom excludes undistributed earnings attributable to
participating securities because they are considered by management
to be outside of Zoom’s core operating results, and excluding them
provides investors and management with greater visibility to the
underlying performance of Zoom’s business operations, facilitates
comparison of its results with other periods and may also
facilitate comparison with the results of other companies in the
industry.
Free Cash Flow, Adjusted Free Cash Flow and Adjusted Free Cash
Flow Margin. Zoom defines free cash flow as GAAP net cash provided
by operating activities less purchases of property and equipment.
Zoom defines adjusted free cash flow as free cash flow plus
litigation settlement payments, net. Zoom adds back litigation
settlement payments, net because they are not part of Zoom's
ongoing operating activities, and the consideration of measures
that exclude such payments can assist in the comparison of cash
generated from operations in different periods which may or may not
include such payments and assist in the comparison with the results
of other companies in the industry. Zoom considers free cash flow
and adjusted free cash flow to be liquidity measures that provide
useful information to management and investors regarding net cash
provided by operating activities and cash used for investments in
property and equipment required to maintain and grow the
business.
Customer Metrics
Zoom defines a customer as a separate and distinct buying
entity, which can be a single paid host or an organization of any
size (including a distinct unit of an organization) that has
multiple paid hosts. Zoom defines Enterprise customers as distinct
business units who have been engaged by either Zoom’s direct sales
team, channel partners or independent software vendor partners. All
other customers are referred to as Online customers.
Zoom calculates net dollar expansion rate as of a period end by
starting with the annual recurring revenue (“ARR”) from Enterprise
customers as of 12 months prior (“Prior Period ARR”). Zoom defines
ARR as the annualized revenue run rate of subscription agreements
from all customers at a point in time. Zoom calculates ARR by
taking the monthly recurring revenue (“MRR”) and multiplying it by
12. MRR is defined as the recurring revenue run-rate of
subscription agreements from all Enterprise customers for the last
month of the period, including revenue from monthly subscribers who
have not provided any indication that they intend to cancel their
subscriptions. Zoom then calculates the ARR from these Enterprise
customers as of the current period end (“Current Period ARR”),
which includes any upsells, contraction, and attrition. Zoom
divides the Current Period ARR by the Prior Period ARR to arrive at
the net dollar expansion rate. For the trailing 12 months
calculation, Zoom takes an average of the net dollar expansion rate
over the trailing 12 months.
Zoom Contacts
Public Relations
Colleen RodriguezHead of Global Public Relations and Executive
Communicationspress@zoom.us
Investor Relations
Tom McCallumHead of Investor Relationsinvestors@zoom.us
|
Zoom Video Communications, Inc.Condensed
Consolidated Balance Sheets(In
thousands) |
|
|
|
As of |
|
|
July 31,2022 |
|
January 31,2022 |
Assets |
|
(unaudited) |
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
937,443 |
|
|
$ |
1,062,820 |
|
Marketable securities |
|
|
4,582,708 |
|
|
|
4,356,446 |
|
Accounts receivable, net |
|
|
509,543 |
|
|
|
419,673 |
|
Deferred contract acquisition costs, current |
|
|
225,221 |
|
|
|
199,266 |
|
Prepaid expenses and other current assets |
|
|
159,486 |
|
|
|
145,602 |
|
Total current assets |
|
|
6,414,401 |
|
|
|
6,183,807 |
|
Deferred contract acquisition
costs, noncurrent |
|
|
176,263 |
|
|
|
164,714 |
|
Property and equipment,
net |
|
|
239,102 |
|
|
|
222,354 |
|
Operating lease right-of-use
assets |
|
|
88,473 |
|
|
|
95,965 |
|
Strategic investments |
|
|
358,248 |
|
|
|
367,814 |
|
Goodwill |
|
|
122,556 |
|
|
|
27,607 |
|
Deferred tax assets |
|
|
494,257 |
|
|
|
382,296 |
|
Other assets, noncurrent |
|
|
154,298 |
|
|
|
106,761 |
|
Total assets |
|
$ |
8,047,598 |
|
|
$ |
7,551,318 |
|
Liabilities and
stockholders’ equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
22,994 |
|
|
$ |
7,841 |
|
Accrued expenses and other current liabilities |
|
|
498,258 |
|
|
|
430,415 |
|
Deferred revenue, current |
|
|
1,345,636 |
|
|
|
1,141,435 |
|
Total current liabilities |
|
|
1,866,888 |
|
|
|
1,579,691 |
|
Deferred revenue,
noncurrent |
|
|
55,513 |
|
|
|
38,481 |
|
Operating lease liabilities,
noncurrent |
|
|
75,954 |
|
|
|
85,018 |
|
Other liabilities,
noncurrent |
|
|
58,846 |
|
|
|
68,110 |
|
Total liabilities |
|
|
2,057,201 |
|
|
|
1,771,300 |
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
Preferred stock |
|
|
— |
|
|
|
— |
|
Common stock |
|
|
298 |
|
|
|
299 |
|
Additional paid-in capital |
|
|
3,830,745 |
|
|
|
3,749,514 |
|
Accumulated other comprehensive loss |
|
|
(48,161 |
) |
|
|
(17,902 |
) |
Retained earnings |
|
|
2,207,515 |
|
|
|
2,048,107 |
|
Total stockholders’
equity |
|
|
5,990,397 |
|
|
|
5,780,018 |
|
Total liabilities and
stockholders’ equity |
|
$ |
8,047,598 |
|
|
$ |
7,551,318 |
|
|
Note: The amount
of unbilled accounts receivable included within accounts
receivable, net on the condensed consolidated balance sheets was
$70.6 million and $59.7 million as of July 31, 2022 and
January 31, 2022, respectively. |
Zoom Video Communications,
Inc.Condensed Consolidated Statements of
Operations(Unaudited, in thousands, except share
and per share amounts)
|
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenue |
|
$ |
1,099,458 |
|
|
$ |
1,021,495 |
|
|
$ |
2,173,258 |
|
|
$ |
1,977,732 |
|
Cost of revenue |
|
|
273,611 |
|
|
|
261,256 |
|
|
|
535,432 |
|
|
|
526,250 |
|
Gross profit |
|
|
825,847 |
|
|
|
760,239 |
|
|
|
1,637,826 |
|
|
|
1,451,482 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
|
172,564 |
|
|
|
82,311 |
|
|
|
316,855 |
|
|
|
147,486 |
|
Sales and marketing |
|
|
400,474 |
|
|
|
271,179 |
|
|
|
763,257 |
|
|
|
516,846 |
|
General and administrative |
|
|
131,066 |
|
|
|
112,146 |
|
|
|
248,906 |
|
|
|
266,235 |
|
Total operating expenses |
|
|
704,104 |
|
|
|
465,636 |
|
|
|
1,329,018 |
|
|
|
930,567 |
|
Income from operations |
|
|
121,743 |
|
|
|
294,603 |
|
|
|
308,808 |
|
|
|
520,915 |
|
(Losses) gains on strategic
investments, net |
|
|
(34,712 |
) |
|
|
32,076 |
|
|
|
(71,116 |
) |
|
|
32,076 |
|
Other income (expense),
net |
|
|
3,368 |
|
|
|
(2,795 |
) |
|
|
(3,621 |
) |
|
|
(176 |
) |
Income before provision for
income taxes |
|
|
90,399 |
|
|
|
323,884 |
|
|
|
234,071 |
|
|
|
552,815 |
|
Provision for income
taxes |
|
|
44,649 |
|
|
|
6,800 |
|
|
|
74,663 |
|
|
|
8,200 |
|
Net income |
|
|
45,750 |
|
|
|
317,084 |
|
|
|
159,408 |
|
|
|
544,615 |
|
Undistributed earnings
attributable to participating securities |
|
|
(4 |
) |
|
|
(154 |
) |
|
|
(19 |
) |
|
|
(309 |
) |
Net income attributable to
common stockholders |
|
$ |
45,746 |
|
|
$ |
316,930 |
|
|
$ |
159,389 |
|
|
$ |
544,306 |
|
|
|
|
|
|
|
|
|
|
Net income per share
attributable to common stockholders: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.15 |
|
|
$ |
1.07 |
|
|
$ |
0.53 |
|
|
$ |
1.85 |
|
Diluted |
|
$ |
0.15 |
|
|
$ |
1.04 |
|
|
$ |
0.52 |
|
|
$ |
1.78 |
|
Weighted-average shares used
in computing net income per share attributable to common
stockholders: |
|
|
|
|
|
|
|
|
Basic |
|
|
298,553,379 |
|
|
|
295,712,675 |
|
|
|
298,865,676 |
|
|
|
294,769,619 |
|
Diluted |
|
|
307,160,840 |
|
|
|
305,861,051 |
|
|
|
306,902,964 |
|
|
|
305,652,628 |
|
Zoom Video Communications, Inc.Condensed
Consolidated Statements of Cash Flows(Unaudited,
in thousands) |
|
|
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
45,750 |
|
|
$ |
317,084 |
|
|
$ |
159,408 |
|
|
$ |
544,615 |
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
255,515 |
|
|
|
102,142 |
|
|
|
464,878 |
|
|
|
201,111 |
|
Amortization of deferred contract acquisition costs |
|
|
62,722 |
|
|
|
41,626 |
|
|
|
119,502 |
|
|
|
79,392 |
|
Losses (gains) on strategic investments, net |
|
|
34,712 |
|
|
|
(32,076 |
) |
|
|
71,116 |
|
|
|
(32,076 |
) |
Depreciation and amortization |
|
|
20,875 |
|
|
|
12,028 |
|
|
|
36,155 |
|
|
|
22,691 |
|
Provision for accounts receivable allowances |
|
|
13,630 |
|
|
|
10,537 |
|
|
|
26,727 |
|
|
|
14,592 |
|
Non-cash operating lease cost |
|
|
5,616 |
|
|
|
4,359 |
|
|
|
11,067 |
|
|
|
8,633 |
|
Amortization on marketable securities |
|
|
1,217 |
|
|
|
7,041 |
|
|
|
4,821 |
|
|
|
12,637 |
|
Other |
|
|
6,575 |
|
|
|
(6 |
) |
|
|
19,305 |
|
|
|
264 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(42,293 |
) |
|
|
(41,594 |
) |
|
|
(125,898 |
) |
|
|
(117,259 |
) |
Prepaid expenses and other assets |
|
|
(109,384 |
) |
|
|
(27,395 |
) |
|
|
(136,619 |
) |
|
|
(57,370 |
) |
Deferred contract acquisition costs |
|
|
(91,315 |
) |
|
|
(54,784 |
) |
|
|
(157,005 |
) |
|
|
(102,597 |
) |
Accounts payable |
|
|
5,288 |
|
|
|
42,368 |
|
|
|
16,441 |
|
|
|
43,960 |
|
Accrued expenses and other liabilities |
|
|
(13,974 |
) |
|
|
5,153 |
|
|
|
64,262 |
|
|
|
93,809 |
|
Deferred revenue |
|
|
67,576 |
|
|
|
85,740 |
|
|
|
220,550 |
|
|
|
296,636 |
|
Operating lease liabilities, net |
|
|
(5,301 |
) |
|
|
(4,211 |
) |
|
|
(11,350 |
) |
|
|
(7,724 |
) |
Net cash provided by operating activities |
|
|
257,209 |
|
|
|
468,012 |
|
|
|
783,360 |
|
|
|
1,001,314 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
Purchases of marketable securities |
|
|
(965,191 |
) |
|
|
(669,136 |
) |
|
|
(1,576,853 |
) |
|
|
(2,094,587 |
) |
Maturities of marketable securities |
|
|
697,349 |
|
|
|
500,859 |
|
|
|
1,306,676 |
|
|
|
791,906 |
|
Sales of marketable securities |
|
|
— |
|
|
|
119,569 |
|
|
|
— |
|
|
|
119,569 |
|
Purchases of property and equipment |
|
|
(27,832 |
) |
|
|
(12,975 |
) |
|
|
(52,870 |
) |
|
|
(92,049 |
) |
Purchases of strategic investments |
|
|
(49,800 |
) |
|
|
(80,400 |
) |
|
|
(61,550 |
) |
|
|
(86,900 |
) |
Cash paid for acquisition, net of cash acquired |
|
|
(120,553 |
) |
|
|
(2,121 |
) |
|
|
(120,553 |
) |
|
|
(2,121 |
) |
Purchases of intangible assets |
|
|
— |
|
|
|
— |
|
|
|
(3,211 |
) |
|
|
— |
|
Net cash used in investing activities |
|
|
(466,027 |
) |
|
|
(144,204 |
) |
|
|
(508,361 |
) |
|
|
(1,364,182 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
Cash paid for repurchases of common stock |
|
|
(293,534 |
) |
|
|
— |
|
|
|
(425,946 |
) |
|
|
— |
|
Proceeds from issuance of common stock for employee stock purchase
plan |
|
|
34,605 |
|
|
|
37,846 |
|
|
|
34,605 |
|
|
|
37,846 |
|
Proceeds from employee equity transactions (remitted) to be
remitted to employees and tax authorities, net |
|
|
1,541 |
|
|
|
28,884 |
|
|
|
(2,545 |
) |
|
|
18,900 |
|
Proceeds from exercise of stock options |
|
|
1,810 |
|
|
|
4,653 |
|
|
|
5,065 |
|
|
|
8,021 |
|
Other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
337 |
|
Net cash used in financing activities |
|
|
(255,578 |
) |
|
|
71,383 |
|
|
|
(388,821 |
) |
|
|
65,104 |
|
Effect of exchange rate
changes on cash, cash equivalents, and restricted cash |
|
|
(6,686 |
) |
|
|
— |
|
|
|
(16,111 |
) |
|
|
— |
|
Net (decrease) increase in
cash, cash equivalents, and restricted cash |
|
|
(471,082 |
) |
|
|
395,191 |
|
|
|
(129,933 |
) |
|
|
(297,764 |
) |
Cash, cash equivalents, and
restricted cash – beginning of period |
|
|
1,414,502 |
|
|
|
1,600,161 |
|
|
|
1,073,353 |
|
|
|
2,293,116 |
|
Cash, cash equivalents, and
restricted cash – end of period |
|
$ |
943,420 |
|
|
$ |
1,995,352 |
|
|
$ |
943,420 |
|
|
$ |
1,995,352 |
|
Zoom Video Communications,
Inc.Reconciliation of GAAP to Non-GAAP
Measures(Unaudited, in thousands, except share and
per share amounts) |
|
|
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
GAAP income from
operations |
|
$ |
121,743 |
|
|
$ |
294,603 |
|
|
$ |
308,808 |
|
|
$ |
520,915 |
|
Add: |
|
|
|
|
|
|
|
|
Stock-based compensation expense and related payroll taxes |
|
|
262,592 |
|
|
|
116,742 |
|
|
|
475,454 |
|
|
|
221,117 |
|
Litigation settlements, net |
|
|
— |
|
|
|
— |
|
|
|
(4,226 |
) |
|
|
66,916 |
|
Acquisition-related expenses |
|
|
9,397 |
|
|
|
13,320 |
|
|
|
13,331 |
|
|
|
16,604 |
|
Non-GAAP income from
operations |
|
$ |
393,732 |
|
|
$ |
424,665 |
|
|
$ |
793,367 |
|
|
$ |
825,552 |
|
GAAP operating margin |
|
|
11.1 |
% |
|
|
28.8 |
% |
|
|
14.2 |
% |
|
|
26.3 |
% |
Non-GAAP operating margin |
|
|
35.8 |
% |
|
|
41.6 |
% |
|
|
36.5 |
% |
|
|
41.7 |
% |
|
|
|
|
|
|
|
|
|
GAAP net income attributable
to common stockholders |
|
$ |
45,746 |
|
|
$ |
316,930 |
|
|
$ |
159,389 |
|
|
$ |
544,306 |
|
Add: |
|
|
|
|
|
|
|
|
Stock-based compensation expense and related payroll taxes |
|
|
262,592 |
|
|
|
116,742 |
|
|
|
475,454 |
|
|
|
221,117 |
|
Litigation settlements, net |
|
|
— |
|
|
|
— |
|
|
|
(4,226 |
) |
|
|
66,916 |
|
Losses (gains) on strategic investments, net |
|
|
34,712 |
|
|
|
(32,076 |
) |
|
|
71,116 |
|
|
|
(32,076 |
) |
Acquisition-related expenses |
|
|
9,397 |
|
|
|
13,320 |
|
|
|
13,331 |
|
|
|
16,604 |
|
Undistributed earnings attributable to participating
securities |
|
|
4 |
|
|
|
154 |
|
|
|
19 |
|
|
|
309 |
|
Tax effects on non-GAAP adjustments |
|
|
(28,966 |
) |
|
|
— |
|
|
|
(75,812 |
) |
|
|
— |
|
Non-GAAP net income |
|
$ |
323,485 |
|
|
$ |
415,070 |
|
|
$ |
639,271 |
|
|
$ |
817,176 |
|
|
|
|
|
|
|
|
|
|
Net income per share - basic
and diluted: |
|
|
|
|
|
|
|
|
GAAP net income per share - basic |
|
$ |
0.15 |
|
|
$ |
1.07 |
|
|
$ |
0.53 |
|
|
$ |
1.85 |
|
Non-GAAP net income per share - basic |
|
$ |
1.08 |
|
|
$ |
1.40 |
|
|
$ |
2.14 |
|
|
$ |
2.77 |
|
GAAP net income per share - diluted |
|
$ |
0.15 |
|
|
$ |
1.04 |
|
|
$ |
0.52 |
|
|
$ |
1.78 |
|
Non-GAAP net income per share - diluted |
|
$ |
1.05 |
|
|
$ |
1.36 |
|
|
$ |
2.08 |
|
|
$ |
2.67 |
|
|
|
|
|
|
|
|
|
|
GAAP and non-GAAP
weighted-average shares used to compute net income per share -
basic |
|
|
298,553,379 |
|
|
|
295,712,675 |
|
|
|
298,865,676 |
|
|
|
294,769,619 |
|
GAAP and non-GAAP
weighted-average shares used to compute net income per share -
diluted |
|
|
307,160,840 |
|
|
|
305,861,051 |
|
|
|
306,902,964 |
|
|
|
305,652,628 |
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating
activities |
|
$ |
257,209 |
|
|
$ |
468,012 |
|
|
$ |
783,360 |
|
|
$ |
1,001,314 |
|
Less: Purchases of property and equipment |
|
|
(27,832 |
) |
|
|
(12,975 |
) |
|
|
(52,870 |
) |
|
|
(92,049 |
) |
Free cash flow (non-GAAP) |
|
$ |
229,377 |
|
|
$ |
455,037 |
|
|
$ |
730,490 |
|
|
$ |
909,265 |
|
Add: Litigation settlement payments, net |
|
|
(7,310 |
) |
|
|
— |
|
|
|
(7,310 |
) |
|
|
— |
|
Adjusted free cash flow
(non-GAAP) |
|
$ |
222,067 |
|
|
$ |
455,037 |
|
|
$ |
723,180 |
|
|
$ |
909,265 |
|
Net cash used in investing
activities |
|
$ |
(466,027 |
) |
|
$ |
(144,204 |
) |
|
$ |
(508,361 |
) |
|
$ |
(1,364,182 |
) |
Net cash (used in) provided by
financing activities |
|
$ |
(255,578 |
) |
|
$ |
71,383 |
|
|
$ |
(388,821 |
) |
|
$ |
65,104 |
|
Operating cash flow margin
(GAAP) |
|
|
23.4 |
% |
|
|
45.8 |
% |
|
|
36.0 |
% |
|
|
50.6 |
% |
Adjusted free cash flow margin
(non-GAAP) |
|
|
20.2 |
% |
|
|
44.5 |
% |
|
|
33.3 |
% |
|
|
46.0 |
% |
Zoom Video Communications (NASDAQ:ZM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Zoom Video Communications (NASDAQ:ZM)
Historical Stock Chart
From Apr 2023 to Apr 2024