• Third quarter entire income of $1,050.8 million, up 35% yr over yr

  • Different of customers contributing extra than $100,000 in TTM income up 94% yr over yr

  • Third quarter GAAP working margin of 27.7% and non-GAAP working margin of 39.1%

SAN JOSE, Calif., Nov. 22, 2021 (GLOBE NEWSWIRE) — Zoom Video Communications, Inc. (NASDAQ: ZM) this day announced financial results for the third fiscal quarter ended October 31, 2021.

“In Q3, we held our premier particular person tournament, Zoomtopia, on our Zoom Events service. For the length of this immersive, multi-display screen conference, we showcased how Zoom is placing of us at the center of our communications platform, connecting their disparate work streams into our abilities, shifting previous enterprises’ ability to collaborate internally, and empowering them to communicate face-to-face with their possibilities by Zoom Events and our upcoming Video Engagement Center. We also showcased enhancements similar to sizzling desking, whiteboarding, and spruce gallery, all designed to empower each co-located and distant hybrid workforces as some corporations take a look at return to place of job applications,” said Zoom founder and CEO, Eric S. Yuan. “Thru innovation and dedication, we’re going to proceed to bid happiness to our possibilities. Having a glimpse forward, we request to cease the yr between $4.079 to $4.081 billion in entire income, representing roughly 54% yr-over-yr converse, alongside solid profitability and working cash dash converse. We are correctly on our methodology to turning into an vital platform for enterprises, folk, and builders to join, collaborate, and blueprint within the versatile hybrid world of labor. We remember our global trace, innovative applied sciences, and mountainous buyer wicked put of living us correctly for the lengthy plod.”

Third Quarter Fiscal Year 2022 Monetary Highlights:

  • Income: Complete income for the third quarter used to be $1,050.8 million, up 35% yr over yr.

  • Profits from Operations and Running Margin: GAAP profits from operations for the third quarter used to be $290.9 million, up from $192.2 million within the third quarter of fiscal yr 2021. After adjusting for inventory-based mostly fully compensation expense and linked payroll taxes, and acquisition-linked charges, non-GAAP profits from operations for the third quarter used to be $411.3 million, up from $290.8 million within the third quarter of fiscal yr 2021. For the third quarter, GAAP working margin used to be 27.7% and non-GAAP working margin used to be 39.1%.

  • Receive Profits and Diluted Receive Profits Per Half: GAAP earn profits attributable to trendy stockholders for the third quarter used to be $340.3 million, or $1.11 per fragment, up from $198.4 million, or $0.66 per fragment within the third quarter of fiscal yr 2021.

    Non-GAAP earn profits for the third quarter used to be $338.4 million, after adjusting for inventory-based mostly fully compensation expense and linked payroll taxes, acquisition-linked charges, positive aspects on strategic investments, earn, and undistributed earnings attributable to participating securities. Non-GAAP earn profits per fragment used to be $1.11. Within the third quarter of fiscal yr 2021, non-GAAP earn profits used to be $297.2 million, or $0.99 per fragment.

  • Money and Marketable Securities: Complete cash, cash equivalents, and marketable securities, with the exception of for restricted cash, as of October 31, 2021 used to be $5.4 billion.

  • Money Float: Receive cash supplied by working activities used to be $394.6 million for the third quarter, in comparison to $411.5 million within the third quarter of fiscal yr 2021. Free cash dash, which is earn cash supplied by working activities less purchases of property and equipment, used to be $374.8 million, in comparison to $388.2 million within the third quarter of fiscal yr 2021.

Buyer Metrics: Drivers of entire income included acquiring unusual possibilities and lengthening across existing possibilities. At the conclude of the third quarter of fiscal yr 2022, Zoom had:

  • 2,507 possibilities contributing extra than $100,000 in trailing 12 months income, up roughly 94% from the identical quarter final fiscal yr.

  • Approximately 512,100 possibilities with extra than 10 staff, up roughly 18% from the identical quarter final fiscal yr.

  • A trailing 12-month earn dollar enlargement rate in possibilities with extra than 10 staff above 130% for the 14th consecutive quarter.

Monetary Outlook: Zoom is offering the following steering for its fourth quarter fiscal yr 2022 and its corpulent fiscal yr 2022.

  • Fourth Quarter Fiscal Year 2022: Complete income is expected to be between $1.051 billion and $1.053 billion and non-GAAP profits from operations is expected to be between $361.0 million and $363.0 million. Non-GAAP diluted EPS is expected to be between $1.06 and $1.07 with roughly 307 million non-GAAP weighted practical shares worthy.

  • Stout Fiscal Year 2022: Complete income is expected to be between $4.079 billion and $4.081 billion. Non-GAAP profits from operations is expected to be between $1.598 billion and $1.600 billion. Non-GAAP diluted EPS is expected to be between $4.84 and $4.85 with roughly 306 million non-GAAP weighted practical shares worthy.

Extra files on Zoom’s reported results, at the side of a reconciliation of the non-GAAP results to their most comparable GAAP measures, is included within the financial tables below. A reconciliation of non-GAAP steering measures to corresponding GAAP measures isn’t any longer accessible on a forward-having a glimpse foundation without unreasonable effort because of the uncertainty of charges that will seemingly be incurred within the lengthy plod, even even supposing it could possibly be vital to screen that these factors will seemingly be self-discipline matter to Zoom’s results computed based mostly fully on GAAP.

A supplemental financial presentation and assorted files can even be accessed by Zoom’s investor family members web attach at merchants.zoom.us.

Zoom Video Earnings Call

Zoom will host a Zoom Video Webinar for merchants on November 22, 2021 at 2: 00 p.m. Pacific Time / 5: 00 p.m. Jap Time to advise about the firm’s financial results, outlook and enterprise highlights. Merchants are invited to affix the Zoom Video Webinar by visiting: https://merchants.zoom.us/

About Zoom

Zoom is for you. We enable you to explicit tips, join to others, and blueprint toward a future minute finest by your creativeness. Our frictionless communications platform is the finest particular person that started with video as its foundation, and we non-public region the regular for innovation ever since. That’s why we’re an intuitive, scalable, and win resolution for mountainous enterprises, small corporations, and folk alike. Founded in 2011, Zoom is publicly traded (NASDAQ:ZM) and headquartered in San Jose, California. Check with zoom.com and follow @zoom.

Forward-Having a glimpse Statements

This press liberate contains explicit and implied “forward-having a glimpse statements” inside of the which process of the Non-public Securities Litigation Reform Act of 1995, at the side of statements with regards to our financial outlook for the fourth quarter of fiscal yr 2022 and entire fiscal yr 2022, Zoom’s market put of living, and Zoom’s converse technique and enterprise aspirations to become an vital platform for folk, enterprises, and builders to join, collaborate and blueprint within the hybrid world. In some cases, you possibly can title forward-having a glimpse statements by phrases similar to “are expecting,” “remember,” “estimate,” “request,” “intend,” “could also honest,” “could,” “idea,” “mission,” “will,” “would,” “ought to nonetheless,” “could,” “can,” “predict,” “probably,” “target,” “detect,” “proceed,” or the detrimental of these phrases, and identical expressions intended to title forward-having a glimpse statements. By their nature, these statements are self-discipline to loads of uncertainties and dangers, at the side of factors previous our attend a watch on, that could motive precise results, efficiency or fulfillment to change materially and adversely from these anticipated or implied within the statements, at the side of: declines in unusual possibilities and hosts, renewals or upgrades, difficulties in evaluating our possibilities and future results of operations given our minute working history, competition from assorted suppliers of communications platforms, endured uncertainty with regards to the extent and length of the influence of COVID-19 and the responses of executive and non-public industry thereto, at the side of the functionality conclude on our particular person converse rate as soon as the influence of the COVID-19 pandemic tapers, critically as vaccines become widely accessible and disbursed, and customers return to work or college or are in any other case now no longer self-discipline to obstacles on in-particular person meetings, as correctly because the influence of COVID-19 on the final economic atmosphere, all or any of which will non-public an influence on quiz of for distant work alternate solutions for corporations as correctly as general disbursed, face-to-face interactions and collaboration the utilization of Zoom, delays or outages in products and companies from our co-located files centers, and failures in web infrastructure or interference with broadband web admission to which could motive present or probably customers to remember that our programs are unreliable. Extra dangers and uncertainties that could motive precise outcomes and results to change materially from these contemplated by the forward-having a glimpse statements are included below the caption “Probability Factors” and in other places in our most standard filings with the Securities and Alternate Commission (the “SEC”), at the side of our quarterly file on Originate 10-Q for the fiscal quarter ended July 31, 2021. Forward-having a glimpse statements communicate finest as of the date the statements are made and are based mostly fully on files accessible to Zoom at the time these statements are made and/or management’s correct religion belief as of that time with admire to future occasions. Zoom assumes no obligation to update forward-having a glimpse statements to reproduction occasions or conditions after the date they were made, with the exception of as required by rules.

Non-GAAP Monetary Measures

Zoom has supplied on this press liberate financial files that has no longer been willing based mostly fully on in most cases popular accounting rules in america (“GAAP”). Zoom uses these non-GAAP financial measures internally in analyzing its financial results and believes that exhaust of these non-GAAP financial measures is purposeful to merchants as an additional tool to non-public in tips ongoing working results and traits and in evaluating Zoom’s financial results with assorted corporations in its industry, quite lots of which present identical non-GAAP financial measures.

Non-GAAP financial measures are no longer supposed to be thought to be in isolation or instead for comparable GAAP financial measures and desires to be read finest in conjunction with Zoom’s condensed consolidated financial statements willing based mostly fully on GAAP. A reconciliation of Zoom’s historical non-GAAP financial measures to essentially the most straight comparable GAAP measures has been supplied within the financial observation tables included on this press liberate, and merchants are inspired to analysis the reconciliation.

Non-GAAP Profits From Operations and Non-GAAP Running Margins. Zoom defines non-GAAP profits from operations as profits from operations with the exception of for inventory-based mostly fully compensation expense and linked payroll taxes, charges linked to charitable donation of classy inventory, acquisition-linked charges, and litigation settlements, earn. Zoom excludes inventory-based mostly fully compensation expense and charges linked to charitable donation of classy inventory because they’re non-income nature and with the exception of for these charges affords meaningful supplemental files with regards to Zoom’s operational efficiency and enables merchants the flexibility to compose extra meaningful comparisons between Zoom’s working results and these of assorted corporations. Zoom excludes the quantity of employer payroll taxes linked to employee inventory plans, which is a cash expense, in shriek for merchants to thought the corpulent conclude that with the exception of for inventory-based mostly fully compensation expense had on Zoom’s working results. In explicit, this expense relies on the cost of our trendy inventory and assorted factors that are previous our attend a watch on and put no longer correlate to the operation of the enterprise. Zoom views acquisition-linked charges when acceptable, similar to amortization of purchased intangible sources, transaction charges, and acquisition-linked retention funds that are straight linked to enterprise combos as occasions that are no longer essentially reflective of operational efficiency at some level of a duration. Zoom excludes vital litigation settlements, earn of amounts covered by insurance, that we mediate no longer to be within the regular course of our enterprise. In explicit, Zoom believes the honour of measures that exclude such charges could support within the comparability of operational efficiency in assorted sessions which could also honest or could also honest no longer encompass such charges and support within the comparability with the consequences of assorted corporations within the industry.

Non-GAAP Receive Profits and Non-GAAP Receive Profits Per Half, In style and Diluted. Zoom defines non-GAAP earn profits and non-GAAP earn profits per fragment, trendy and diluted, as GAAP earn profits attributable to trendy stockholders and GAAP earn profits per fragment attributable to trendy stockholders, trendy and diluted, respectively, adjusted to exclude inventory-based mostly fully compensation expense and linked payroll taxes, charges linked to charitable donation of classy inventory, acquisition-linked charges, litigation settlements, earn, positive aspects on strategic investments, earn, and undistributed earnings attributable to participating securities. Zoom excludes positive aspects on strategic investments, earn because given the size and volatility within the continuing adjustments to the valuation of our strategic investments, we remember that with the exception of for these positive aspects or losses facilitates a extra meaningful analysis of our operational efficiency. Zoom excludes undistributed earnings attributable to participating securities because they’re thought to be by management to be out of doors of Zoom’s core working results, and with the exception of for them affords merchants and management with increased visibility to the underlying efficiency of Zoom’s enterprise operations, facilitates comparability of its results with assorted sessions and could honest also facilitate comparability with the consequences of assorted corporations within the industry.

With a thought to calculate non-GAAP earn profits per fragment, trendy and diluted, Zoom uses a non-GAAP weighted-practical fragment count. Zoom defines non-GAAP weighted-practical shares used to compute non-GAAP earn profits per fragment, trendy and diluted, as GAAP weighted practical shares used to compute earn profits per fragment attributable to trendy stockholders, trendy and diluted, adjusted to reproduction the trendy inventory issued in reference to the IPO, at the side of the concurrent non-public placement, that are worthy as of the conclude of the duration as within the occasion that they were worthy as of the beginning of the duration for comparability.

Free Money Float. Zoom defines free cash dash as GAAP earn cash supplied by working activities less purchases of property and equipment. Zoom considers free cash dash to be a liquidity measure that affords purposeful files to management and merchants with regards to earn cash supplied by working activities and cash used for investments in property and equipment required to handle and grow the enterprise.

Buyer Metrics

Zoom defines a buyer as a separate and certain buying for entity, which is commonly a single paid host or an group of any size (at the side of a certain unit of an group) that has multiple paid hosts.

Zoom calculates earn dollar enlargement rate as of a duration conclude by beginning with the annual routine income (“ARR”) from all possibilities with extra than 10 staff as of 12 months prior (“Prior Length ARR”). Zoom defines ARR because the annualized income plod rate of subscription agreements from all possibilities at a cut-off date. We then calculate the ARR from these possibilities as of the present duration conclude (“Most modern Length ARR”), which contains any upsells, contraction, and attrition. Zoom divides the Most modern Length ARR by the Prior Length ARR to advance at the online dollar enlargement rate. For the trailing 12 months calculation, Zoom takes an practical of the online dollar enlargement rate over the trailing 12 months.

Press Family participants

Colleen Rodriguez

World Public Family participants Lead for Zoom

press@zoom.us

Investor Family participants

Tom McCallum

Head of Investor Family participants for Zoom

merchants@zoom.us

Zoom Video Communications, Inc.

Condensed Consolidated Balance Sheets

(In hundreds)

As of

October 31,

2021

January 31,

2021

Assets

(unaudited)

Most modern sources:

Money and cash equivalents

$

1,322,435

$

2,240,303

Marketable securities

4,095,520

2,004,410

Accounts receivable, earn

377,874

294,703

Deferred contract acquisition charges, present

177,966

136,630

Pay as you trek charges and assorted present sources

138,921

116,819

Complete present sources

6,112,716

4,792,865

Deferred contract acquisition charges, noncurrent

155,541

157,262

Property and equipment, earn

212,655

149,924

Running rent appropriate-of-exhaust sources

88,335

97,649

Strategic investments

299,750

18,668

Goodwill

26,247

24,340

Completely different sources, noncurrent

83,727

57,285

Complete sources

$

6,978,971

$

5,297,993

Liabilities and stockholders’ equity

Most modern liabilities:

Accounts payable

$

20,064

$

8,664

Gathered charges and assorted present liabilities

509,874

393,018

Deferred income, present

1,161,442

858,284

Complete present liabilities

1,691,380

1,259,966

Deferred income, noncurrent

24,677

25,211

Running rent liabilities, noncurrent

79,319

90,415

Completely different liabilities, noncurrent

69,910

61,634

Complete liabilities

1,865,286

1,437,226

Stockholders’ equity:

Most trendy inventory

Total inventory

297

292

Extra paid-in capital

3,561,050

3,187,168

Accrued assorted total (loss) profits

(5,128

)

839

Retained earnings

1,557,466

672,468

Complete stockholders’ equity

5,113,685

3,860,767

Complete liabilities and stockholders’ equity

$

6,978,971

$

5,297,993

Show: The quantity of unbilled accounts receivable included inside of accounts receivable, earn on the condensed consolidated balance sheets used to be $48.6 million and $24.6 million as of October 31, 2021 and January 31, 2021, respectively.

Zoom Video Communications, Inc.

Condensed Consolidated Statements of Operations

(Unaudited, in hundreds, with the exception of fragment and per fragment amounts)

Three Months Ended October 31,

Nine Months Ended October 31,

2021

2020

2021

2020

Income

$

1,050,756

$

777,196

$

3,028,488

$

1,768,883

Charge of income

270,957

258,727

797,207

554,705

Sinister income

779,799

518,469

2,231,281

1,214,178

Running charges:

Review and constructing

98,508

42,582

245,994

111,705

Sales and advertising

293,698

190,157

810,544

470,886

In style and administrative

96,736

93,488

362,971

227,856

Complete working charges

488,942

326,227

1,419,509

810,447

Profits from operations

290,857

192,242

811,772

403,731

Gains on strategic investments, earn

122,421

154,497

2,538

Hobby profits and assorted, earn

(2,995

)

1,779

(3,171

)

7,112

Profits sooner than provision for (retract pleasure in) profits taxes

410,283

194,021

963,098

413,381

Provision for (retract pleasure in) profits taxes

69,900

(4,621

)

78,100

1,675

Receive profits

340,383

198,642

884,998

411,706

Undistributed earnings attributable to participating securities

(112

)

(202

)

(430

)

(531

)

Receive profits attributable to trendy stockholders

$

340,271

$

198,440

$

884,568

$

411,175

Receive profits per fragment attributable to trendy stockholders:

In style

$

1.14

$

0.70

$

2.99

$

1.46

Diluted

$

1.11

$

0.66

$

2.89

$

1.38

Weighted-practical shares utilized in computing earn profits per fragment attributable to trendy stockholders:

In style

297,375,011

284,783,006

295,647,626

282,564,481

Diluted

305,939,624

299,258,765

305,726,733

297,605,941

Zoom Video Communications, Inc.

Condensed Consolidated Statements of Money Flows

(Unaudited, in hundreds)

Three Months Ended October 31,

Nine Months Ended October 31,

2021

2020

2021

2020

Money flows from working activities:

Receive profits

$

340,383

$

198,642

$

884,998

$

411,706

Adjustments to reconcile earn profits to earn cash supplied by working activities:

Stock-based mostly fully compensation expense

114,801

93,925

315,912

179,557

Amortization of deferred contract acquisition charges

46,299

30,500

125,691

71,281

Gains on strategic investments, earn

(122,421

)

(154,497

)

(2,538

)

Charitable donation of classy inventory

23,312

Provision for accounts receivable allowances

8,890

5,259

23,482

20,218

Depreciation and amortization

12,584

7,587

35,275

19,401

Non-cash working rent price

4,498

2,585

13,131

7,182

Amortization on marketable securities

6,909

1,597

19,546

2,787

Completely different

1,863

92

2,127

930

Changes in working sources and liabilities:

Accounts receivable

8,718

6,809

(108,541

)

(190,117

)

Pay as you trek charges and assorted sources

(14,628

)

5,471

(71,998

)

(48,258

)

Deferred contract acquisition charges

(62,708

)

(52,504

)

(165,305

)

(266,294

)

Accounts payable

(31,898

)

(2,098

)

12,062

8,773

Gathered charges and assorted liabilities

78,105

1,853

171,914

203,919

Deferred income

7,877

114,451

304,513

633,600

Running rent liabilities, earn

(4,716

)

(2,699

)

(12,440

)

(3,678

)

Receive cash supplied by working activities

394,556

411,470

1,395,870

1,071,781

Money flows from investing activities:

Purchases of marketable securities

(1,351,726

)

(531,227

)

(3,446,313

)

(1,016,109

)

Maturities of marketable securities

255,639

119,269

1,047,545

406,607

Sales of marketable securities

162,013

281,582

36,897

Purchases of property and equipment

(19,767

)

(23,264

)

(111,816

)

(58,517

)

Purchases of strategic investments

(39,449

)

(126,349

)

(13,000

)

Money paid for acquisition, earn of cash purchased

(2,121

)

(26,486

)

Prefer of intangible sources

(9,626

)

(2,891

)

(9,626

)

(4,385

)

Completely different

297

1,616

Receive cash utilized in investing activities

(1,002,916

)

(437,816

)

(2,367,098

)

(673,377

)

Money flows from financing activities:

Proceeds from issuance of classy inventory for employee inventory bewitch idea

37,846

20,760

Proceeds from employee equity transactions (remitted) to be remitted to staff and tax authorities, earn

(47,242

)

17,176

(28,342

)

251,641

Proceeds from snarl of inventory alternate solutions

3,023

6,424

11,044

23,841

Completely different

337

Receive cash (utilized in) supplied by financing activities

(44,219

)

23,600

20,885

296,242

Receive (decrease) extend in cash, cash equivalents, and restricted cash

(652,579

)

(2,746

)

(950,343

)

694,646

Money, cash equivalents, and restricted cash – beginning of duration

1,995,352

1,031,474

2,293,116

334,082

Money, cash equivalents, and restricted cash – conclude of duration

$

1,342,773

$

1,028,728

$

1,342,773

$

1,028,728

Zoom Video Communications, Inc.

Reconciliation of GAAP to Non-GAAP Measures

(Unaudited, in hundreds, with the exception of fragment and per fragment amounts)

Three Months Ended October 31,

Nine Months Ended October 31,

2021

2020

2021

2020

GAAP profits from operations

$

290,857

$

192,242

$

811,772

$

403,731

Adjustments:

Stock-based mostly fully compensation expense and linked payroll taxes

118,708

97,131

339,825

188,979

Litigation settlements, earn

66,916

Acquisition-linked charges

1,713

1,398

18,317

6,340

Charitable donation of classy inventory

23,312

Non-GAAP profits from operations

$

411,278

$

290,771

$

1,236,830

$

622,362

GAAP earn profits attributable to trendy stockholders

$

340,271

$

198,440

$

884,568

$

411,175

Adjustments:

Stock-based mostly fully compensation expense and linked payroll taxes

118,708

97,131

339,825

188,979

Litigation settlements, earn

66,916

Gains on strategic investments, earn

(122,421

)

(154,497

)

Acquisition-linked charges

1,713

1,398

18,317

6,340

Charitable donation of classy inventory

23,312

Undistributed earnings attributable to participating securities

112

202

430

531

Non-GAAP earn profits

$

338,383

$

297,171

$

1,155,559

$

630,337

Receive profits per fragment – trendy and diluted:

GAAP earn profits per fragment – trendy

$

1.14

$

0.70

$

2.99

$

1.46

Non-GAAP earn profits per fragment – trendy

$

1.14

$

1.04

$

3.91

$

2.23

GAAP earn profits per fragment – diluted

$

1.11

$

0.66

$

2.89

$

1.38

Non-GAAP earn profits per fragment – diluted

$

1.11

$

0.99

$

3.78

$

2.12

GAAP and non-GAAP weighted-practical shares used to compute earn profits per fragment – trendy

297,375,011

284,783,006

295,647,626

282,564,481

GAAP and non-GAAP weighted-practical shares used to compute earn profits per fragment – diluted

305,939,624

299,258,765

305,726,733

297,605,941

Receive cash supplied by working activities

$

394,556

$

411,470

$

1,395,870

$

1,071,781

Less:

Purchases of property and equipment

(19,767

)

(23,264

)

(111,816

)

(58,517

)

Free cash dash (non-GAAP)

$

374,789

$

388,206

$

1,284,054

$

1,013,264

Receive cash utilized in investing activities

$

(1,002,916

)

$

(437,816

)

$

(2,367,098

)

$

(673,377

)

Receive cash (utilized in) supplied by financing activities

$

(44,219

)

$

23,600

$

20,885

$

296,242

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