Zoom Communications Files Q3 FY25 10-Q

TL;DR

Zoom's Q3 FY25 10-Q is in. Check financials for latest performance.

AI Summary

Zoom Communications, Inc. filed its 10-Q for the period ending October 31, 2024. The filing covers the third quarter of fiscal year 2025. Key financial data and operational details for this period are presented, with the company's fiscal year ending on January 31st.

Why It Matters

This filing provides investors with the latest financial performance and operational updates for Zoom, crucial for assessing the company's current health and future prospects.

Risk Assessment

Risk Level: medium — The filing contains information about potential lawsuits, which could pose a financial or reputational risk to the company.

Key Numbers

• 2024-10-31 — Reporting Period End (The 10-Q covers financial results up to this date.)
• 2024-11-26 — Filing Date (The date the 10-Q was officially submitted to the SEC.)
• 2025 Q3 — Fiscal Quarter (Indicates the specific fiscal quarter the report pertains to.)

Key Players & Entities

• Zoom Communications, Inc. (company) — Filer
• 2024-10-31 (date) — Reporting Period End Date
• 2024-11-26 (date) — Filing Date
• 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE, CA 95113 (address) — Business and Mail Address
• Zoom Video Communications, Inc. (company) — Former Company Name
• zm-20241031.htm (document) — Filed Document Name
• 2024-01-31 (date) — Fiscal Year End Date

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-20241031.htm (10-Q) — 1687KB
• zm-20241031xex311.htm (EX-31.1) — 11KB
• zm-20241031xex312.htm (EX-31.2) — 11KB
• zm-20241031xex321.htm (EX-32.1) — 9KB
• 0001585521-24-000260.txt ( ) — 7655KB
• zm-20241031.xsd (EX-101.SCH) — 37KB
• zm-20241031_cal.xml (EX-101.CAL) — 85KB
• zm-20241031_def.xml (EX-101.DEF) — 208KB
• zm-20241031_lab.xml (EX-101.LAB) — 607KB
• zm-20241031_pre.xml (EX-101.PRE) — 417KB
• zm-20241031_htm.xml (XML) — 1161KB

– Financial Information

PART I – Financial Information 6 Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 6 Condensed Consolidated Balance Sheets as of October 31, 2024 and January 31, 2024 6 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended October 31, 2024 and 2023 7 Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended October 31, 2024 and 2023 8 Condensed Consolidated Statements of Stockholders' Equity for the Three and Nine Months Ended October 31, 2024 and 2023 9 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended October 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 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 38 Item 4.

Controls and Procedures

Controls and Procedures 39

– Other Information

PART II – Other Information 40 Item 1.

Legal Proceedings

Legal Proceedings 40 Item 1A

Risk Factors

Risk Factors 40 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 74 Item 3. Defaults Upon Senior Securities 75 Item 4. Mine Safety Disclosures 75 Item 5. Other Information 75 Item 6. Exhibits 76

Signatures

Signatures 77 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, such as the launch of an enhanced version of AI Companion, 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

—Financial Information

PART I—Financial Information

FINANCIAL STATEMENTS

Item 1. FINANCIAL STATEMENTS ZOOM COMMUNICATIONS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) As of October 31, 2024 January 31, 2024 Assets (unaudited) Current assets: Cash and cash equivalents $ 1,273,823 $ 1,558,252 Marketable securities 6,428,214 5,404,233 Accounts receivable, net of allowances of $ 23,724 and $ 32,371 as of October 31, 2024 and January 31, 2024, respectively 458,007 536,078 Deferred contract acquisition costs, current 189,874 208,474 Prepaid expenses and other current assets 182,497 219,182 Total current assets 8,532,415 7,926,219 Deferred contract acquisition costs, noncurrent 113,079 138,724 Property and equipment, net 340,750 293,704 Operating lease right-of-use assets 56,878 58,975 Strategic investments 444,653 409,222 Goodwill 307,295 307,295 Deferred tax assets 730,601 662,177 Other assets, noncurrent 154,198 133,477 Total assets $ 10,679,869 $ 9,929,793 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 8,542 $ 10,175 Accrued expenses and other current liabilities 481,492 500,164 Deferred revenue, current 1,363,392 1,251,848 Total current liabilities 1,853,426 1,762,187 Deferred revenue, noncurrent 15,559 18,514 Operating lease liabilities, noncurrent 37,590 48,308 Other liabilities, noncurrent 93,460 81,378 Total liabilities 2,000,035 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 October 31, 2024 and January 31, 2024; 260,989,188 and 260,896,822 shares issued and outstanding as of October 31, 2024 and January 31, 2024, respectively; 300,000,000 Class B shares authorized as of October 31, 2024 and January 31, 2024; 45,635,091 and 46,661,531 shares issued and outstanding as of October 31, 2024 and January 31, 2024, respectively 306 307 Additional paid-in capital 5,241,088 5,228,756 Accumulated other comprehensive