Zoom Files Q2 FY25 10-Q Report

TL;DR

Zoom's Q2 FY25 10-Q is in. Check financials.

AI Summary

Zoom Video Communications, Inc. filed its 10-Q for the period ending July 31, 2024. The filing covers financial performance and operational details for the second quarter of fiscal year 2025. Key financial figures and business updates are detailed within this report.

Why It Matters

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

Risk Assessment

Risk Level: medium — The filing mentions 'lawsuit' and 'defendant', indicating potential legal risks that could impact the company.

Key Numbers

• 20240731 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial data is reported.)
• 20240823 — Filing Date (The date Zoom Video Communications, Inc. submitted this 10-Q filing to the SEC.)

Key Players & Entities

• Zoom Video Communications, Inc. (company) — Filer of the 10-Q report
• 20240731 (date) — End of the reporting period
• 20240823 (date) — Filing date of the report
• lawsuit (event) — Mentioned in the filing, indicating potential legal proceedings
• defendant (role) — Associated with the lawsuit mentioned in the filing

FAQ

Key Financial Figures

• $0.001 — which registered Class A Common Stock, $0.001 par value per share ZM The Nasdaq Globa

Filing Documents

• zm-20240731.htm (10-Q) — 1717KB
• zm-20240731xex311.htm (EX-31.1) — 11KB
• zm-20240731xex312.htm (EX-31.2) — 11KB
• zm-20240731xex321.htm (EX-32.1) — 9KB
• 0001585521-24-000181.txt ( ) — 7711KB
• zm-20240731.xsd (EX-101.SCH) — 37KB
• zm-20240731_cal.xml (EX-101.CAL) — 85KB
• zm-20240731_def.xml (EX-101.DEF) — 203KB
• zm-20240731_lab.xml (EX-101.LAB) — 604KB
• zm-20240731_pre.xml (EX-101.PRE) — 410KB
• zm-20240731_htm.xml (XML) — 1190KB

– Financial Information

PART I – Financial Information 6 Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 6 Condensed Consolidated Balance Sheets as of July 31, 2024 and January 31, 2024 6 Condensed Consolidated Statements of Operations for the Three and Six Months Ended July 31, 2024 and 2023 7 Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended July 31, 2024 and 2023 8 Condensed Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended July 31, 2024 and 2023 9 Condensed Consolidated Statements of Cash Flows for the Six Months Ended July 31, 2024 and 2023 11 Notes to Condensed Consolidated Financial Statements 12 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 24 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 36 Item 4.

Controls and Procedures

Controls and Procedures 37

– Other Information

PART II – Other Information 38 Item 1.

Legal Proceedings

Legal Proceedings 38 Item 1A

Risk Factors

Risk Factors 38 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 72 Item 3. Defaults Upon Senior Securities 72 Item 4. Mine Safety Disclosures 72 Item 5. Other Information 72 Item 6. Exhibits 74

Signatures

Signatures 75 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 July 31, 2024 January 31, 2024 Assets (unaudited) Current assets: Cash and cash equivalents $ 1,539,457 $ 1,558,252 Marketable securities 5,980,575 5,404,233 Accounts receivable, net of allowances of $ 22,799 and $ 32,371 as of July 31, 2024 and January 31, 2024, respectively 528,237 536,078 Deferred contract acquisition costs, current 197,502 208,474 Prepaid expenses and other current assets 149,374 219,182 Total current assets 8,395,145 7,926,219 Deferred contract acquisition costs, noncurrent 120,603 138,724 Property and equipment, net 347,714 293,704 Operating lease right-of-use assets 53,045 58,975 Strategic investments 438,529 409,222 Goodwill 307,295 307,295 Deferred tax assets 718,066 662,177 Other assets, noncurrent 126,795 133,477 Total assets $ 10,507,192 $ 9,929,793 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 10,611 $ 10,175 Accrued expenses and other current liabilities 439,459 500,164 Deferred revenue, current 1,391,278 1,251,848 Total current liabilities 1,841,348 1,762,187 Deferred revenue, noncurrent 15,416 18,514 Operating lease liabilities, noncurrent 36,052 48,308 Other liabilities, noncurrent 89,129 81,378 Total liabilities 1,981,945 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 July 31, 2024 and January 31, 2024; 262,335,183 and 260,896,822 shares issued and outstanding as of July 31, 2024 and January 31, 2024, respectively; 300,000,000 Class B shares authorized as of July 31, 2024 and January 31, 2024; 45,660,441 and 46,661,531 shares issued and outstanding as of July 31, 2024 and January 31, 2024, respectively 308 307 Additional paid-in capital 5,298,145 5,228,756 Accumulated other comprehensive income 2,1