Zoom Files Q1 FY25 10-Q Report

Ticker: ZM · Form: 10-Q · Filed: May 22, 2024

Sentiment: neutral

Topics: 10-Q, quarterly-report, financials

TL;DR

Zoom's Q1 FY25 10-Q is in. Check financials.

AI Summary

Zoom Video Communications, Inc. filed its 10-Q for the period ending April 30, 2024. The filing covers the first quarter of fiscal year 2025. Key financial data and operational details for this period are presented.

Why It Matters

This report provides investors with the latest financial performance and operational status of Zoom, a key player in the video conferencing market.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing financial updates and does not indicate any immediate or significant new risks.

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The reporting period for this 10-Q filing is April 30, 2024.

What fiscal year does this 10-Q filing pertain to?

This 10-Q filing pertains to the first quarter of fiscal year 2025.

What is the company's filing number with the SEC?

The SEC file number for Zoom Video Communications, Inc. is 001-38865.

What is the business address of Zoom Video Communications, Inc.?

The business address is 55 Almaden Boulevard, 6th Floor, San Jose, CA 95113.

When was this 10-Q filing submitted?

This 10-Q filing was submitted on May 22, 2024.

Filing Stats: 4,411 words · 18 min read · ~15 pages · Grade level 18.5 · Accepted 2024-05-22 16:02:24

Key Financial Figures

Filing Documents

– Financial Information

PART I – Financial Information 6 Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 6 Condensed Consolidated Balance Sheets as of April 30, 2024 and January 31, 2024 6 Condensed Consolidated Statements of Operations for the Three Months Ended April 30, 2024 and 2023 7 Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended April 30, 2024 and 2023 8 Condensed Consolidated Statements of Stockholders' Equity for the Three Months Ended April 30, 2024 and 2023 9 Condensed Consolidated Statements of Cash Flows for the Three Months Ended April 30, 2024 and 2023 10 Notes to Condensed Consolidated Financial Statements 11 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 32 Item 4.

Controls and Procedures

Controls and Procedures 33

– Other Information

PART II – Other Information 34 Item 1.

Legal Proceedings

Legal Proceedings 34 Item 1A

Risk Factors

Risk Factors 34 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 68 Item 3. Defaults Upon Senior Securities 68 Item 4. Mine Safety Disclosures 68 Item 5. Other Information 68 Item 6. Exhibits 69

Signatures

Signatures 70 2 Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which statements involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations or financial condition; business strategy and plans; and objectives of management for future operations, including our statements regarding the benefits and timing of the roll out of new technology, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," or "would" or the negative of these words or other similar terms or expressions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about: our future financial performance, including our revenue, cost of revenue, gross profit, margins, and operating expenses; trends in our key business metrics; the sufficiency of our cash and cash equivalents, investments, and cash provided by sales of our products and services to meet our liquidity needs; market trends; our market position and opportunity; our growth strategy and business aspirations for our communications and collaboration platform; our product strategy; our efforts to enhance the security and privacy of our platform; our ability to operate our business and effectively manage our scale under evolving macroeconomic conditions, such as high inflation, recessionary or uncertain environments

—Financial Information

PART I—Financial Information

FINANCIAL STATEMENTS

Item 1. FINANCIAL STATEMENTS ZOOM VIDEO COMMUNICATIONS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) As of April 30, 2024 January 31, 2024 Assets (unaudited) Current assets: Cash and cash equivalents $ 1,885,603 $ 1,558,252 Marketable securities 5,488,737 5,404,233 Accounts receivable, net of allowances of $ 22,009 and $ 32,371 as of April 30, 2024 and January 31, 2024, respectively 527,515 536,078 Deferred contract acquisition costs, current 198,113 208,474 Prepaid expenses and other current assets 182,077 219,182 Total current assets 8,282,045 7,926,219 Deferred contract acquisition costs, noncurrent 121,087 138,724 Property and equipment, net 304,712 293,704 Operating lease right-of-use assets 55,750 58,975 Strategic investments 424,923 409,222 Goodwill 307,295 307,295 Deferred tax assets 673,808 662,177 Other assets, noncurrent 127,010 133,477 Total assets $ 10,296,630 $ 9,929,793 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 18,315 $ 10,175 Accrued expenses and other current liabilities 501,799 500,164 Deferred revenue, current 1,335,787 1,251,848 Total current liabilities 1,855,901 1,762,187 Deferred revenue, noncurrent 16,405 18,514 Operating lease liabilities, noncurrent 40,284 48,308 Other liabilities, noncurrent 85,216 81,378 Total liabilities 1,997,806 1,910,387 Commitments and contingencies (Note 7) Stockholders' equity: Common stock, $ 0.001 par value per share, 2,000,000,000 Class A shares authorized as of April 30, 2024 and January 31, 2024; 263,636,337 and 260,896,822 shares issued and outstanding as of April 30, 2024 and January 31, 2024, respectively; 300,000,000 Class B shares authorized as of April 30, 2024 and January 31, 2024; 45,632,347 and 46,661,531 shares issued and outstanding as of April 30, 2024 and January 31, 2024, respectively 309 307 Additional paid-in capital 5,310,417 5,228,756 Accumulated other comprehensive (loss

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