Zoom Video Communications Reports Financial Results for the Third Quarter of Fiscal Year 2023

Zoom Video Communications, Inc. Third quarter total revenue of $1,101.9 million, up 5% year over year as reported and 7% in constant currency Third quarter Enterprise revenue of $614 million, up 20% year over year Third quarter GAAP operating margin of 6.0% and non-GAAP operating margin of 34.6% Number of […]

Zoom Video Communications, Inc.

Zoom Video Communications, Inc.

  • Third quarter total revenue of $1,101.9 million, up 5% year over year as reported and 7% in constant currency

  • Third quarter Enterprise revenue of $614 million, up 20% year over year

  • Third quarter GAAP operating margin of 6.0% and non-GAAP operating margin of 34.6%

  • Number of customers contributing more than $100,000 in trailing 12 months revenue up 31% year over year

SAN JOSE, Calif., Nov. 21, 2022 (GLOBE NEWSWIRE) — Zoom Video Communications, Inc. (NASDAQ: ZM), today announced financial results for the third fiscal quarter ended October 31, 2022.

“At Zoomtopia, we announced a number of innovations including Zoom Mail and Zoom Calendar, along with new partnerships that are expected to power and enhance the modern work experience,” said Eric S. Yuan, Zoom founder, and CEO. “Our customers are increasingly looking to Zoom to help them enable flexible work environments and empower authentic connections and collaboration. Proactively addressing these needs with Zoom’s expanding platform continues to be our focus in this dynamic environment. In Q3, we drove revenue above guidance with continued momentum in Enterprise. In addition, our non-GAAP operating income came in meaningfully higher than our outlook, setting us up to finish the year with full-year revenue growth, strong GAAP and non-GAAP profitability, and free cash flow that we expect to be at the high end of our range of $1 billion to $1.15 billion.”1

Third Quarter Fiscal Year 2023 Financial Highlights:

  • Revenue: Total revenue for the third quarter was $1,101.9 million, up 5% year over year. After adjusting for foreign currency impact, revenue in constant currency was $1,126.1 million, up 7% year over year in constant currency. Enterprise revenue was $614.3 million, up 20% year over year and Online revenue was $487.6 million, down 9% year over year.

  • Income from Operations and Operating Margin: GAAP income from operations for the third quarter was $66.5 million, compared to GAAP income from operations of $290.9 million in the third 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 third quarter was $380.9 million, compared to non-GAAP income from operations of $411.3 million in the third quarter of fiscal year 2022. For the third quarter, GAAP operating margin was 6.0% and non-GAAP operating margin was 34.6%.

  • Net Income and Diluted Net Income Per Share: GAAP net income attributable to common stockholders for the third quarter was $48.4 million, or $0.16 per share, compared to GAAP net income attributable to common stockholders of $340.3 million, or $1.11 per share in the third quarter of fiscal year 2022.

    Non-GAAP net income for the third quarter was $323.2 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 $1.07. In the third quarter of fiscal year 2022, non-GAAP net income was $338.4 million, or $1.11 per share.

  • Cash and Marketable Securities: Total cash, cash equivalents, and marketable securities, excluding restricted cash, as of October 31, 2022 was $5.2 billion.

  • Cash Flow: Net cash provided by operating activities was $295.3 million for the third quarter, compared to $394.6 million in the third quarter of fiscal year 2022. Free cash flow, which is net cash provided by operating activities less purchases of property and equipment, was $272.6 million, compared to $374.8 million in the third 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 third quarter of fiscal year 2023, Zoom had:

  • Approximately 209,300 Enterprise customers, up 14% from the same quarter last fiscal year.

  • A trailing 12-month net dollar expansion rate for Enterprise customers of 117%.

  • 3,286 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 31% from the same quarter last fiscal year.

  • Online average monthly churn of 3.1% for Q3, down 60 bps from the same quarter last fiscal year.

Financial Outlook: Zoom is providing the following guidance for its fourth quarter fiscal year 2023 and its full fiscal year 2023.

  • Fourth Quarter Fiscal Year 2023: Total revenue is expected to be between $1.095 billion and $1.105 billion and revenue in constant currency is expected to be between $1.120 billion and $1.130 billion. Non-GAAP income from operations is expected to be between $316.0 million and $326.0 million. Non-GAAP diluted EPS is expected to be between $0.75 and $0.78 with approximately 301 million weighted average shares outstanding.

  • Full Fiscal Year 2023: Total revenue is expected to be between $4.370 billion and $4.380 billion and revenue in constant currency is expected to be between $4.442 billion and $4.452 billion. Full fiscal year non-GAAP income from operations is expected to be between $1.490 billion and $1.500 billion. Full fiscal year non-GAAP diluted EPS is expected to be between $3.91 and $3.94 with approximately 304 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.

___________________________________
1 The free cash flow outlook range assumes that the Section 174 tax legislation requiring capitalization of R&D expenses will be repealed or deferred by Congress by the end of this fiscal year.

Zoom Video Earnings Call

Zoom will host a Zoom Video Webinar for investors on November 21, 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 fourth quarter of fiscal year 2023 and full fiscal year 2023, Zoom’s free cash flow outlook, assumptions related to Section 174 tax legislation requiring capitalization of R&D expenses being repealed or deferred, 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 July 31, 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. Zoom defines free cash flow as GAAP net cash provided by operating activities less purchases of property and equipment. Zoom considers free cash flow to be a liquidity measure 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.

Revenue in Constant Currency. Zoom defines revenue in constant currency as GAAP revenue adjusted for revenue reported in currencies other than United States dollars as if they were converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. Zoom provides revenue in constant currency information as a framework for assessing how our underlying businesses performed period to period, excluding the effects of foreign currency fluctuations.

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 that subscribe to our services directly through our website 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 calculates online average monthly churn by starting with the Online customer MRR as of the beginning of the applicable quarter (“Entry MRR”). Entry MRR is defined as the recurring revenue run-rate of subscription agreements from all Online customers, including revenue from monthly subscribers that have not provided any indication that they intend to cancel their subscriptions. Zoom then determines the MRR related to customers who canceled or downgraded their subscription during the applicable quarter (“Applicable Quarter MRR Churn”). Zoom divides the Applicable Quarter MRR Churn by the applicable quarter Entry MRR to arrive at the MRR Churn rate for Online Customers for the applicable quarter. Zoom then divides that amount by three to calculate the online average monthly churn.

Public Relations

Colleen Rodriguez
Head of Global Public Relations and Executive Communications
[email protected]

Investor Relations

Tom McCallum
Head of Investor Relations
[email protected]

Zoom Video Communications, Inc.
Condensed Consolidated Balance Sheets
(In thousands)

 

 

As of

 

 

October 31,
2022

 

January 31,
2022

Assets

 

(unaudited)

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

1,096,174

 

 

$

1,062,820

 

Marketable securities

 

 

4,068,818

 

 

 

4,356,446

 

Accounts receivable, net

 

 

589,573

 

 

 

419,673

 

Deferred contract acquisition costs, current

 

 

221,871

 

 

 

199,266

 

Prepaid expenses and other current assets

 

 

165,661

 

 

 

145,602

 

Total current assets

 

 

6,142,097

 

 

 

6,183,807

 

Deferred contract acquisition costs, noncurrent

 

 

173,305

 

 

 

164,714

 

Property and equipment, net

 

 

250,843

 

 

 

222,354

 

Operating lease right-of-use assets

 

 

90,981

 

 

 

95,965

 

Strategic investments

 

 

354,549

 

 

 

367,814

 

Goodwill

 

 

122,556

 

 

 

27,607

 

Deferred tax assets

 

 

550,539

 

 

 

382,296

 

Other assets, noncurrent

 

 

152,308

 

 

 

106,761

 

Total assets

 

$

7,837,178

 

 

$

7,551,318

 

Liabilities and stockholders’ equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

27,247

 

 

$

7,841

 

Accrued expenses and other current liabilities

 

 

561,300

 

 

 

430,415

 

Deferred revenue, current

 

 

1,307,763

 

 

 

1,141,435

 

Total current liabilities

 

 

1,896,310

 

 

 

1,579,691

 

Deferred revenue, noncurrent

 

 

46,460

 

 

 

38,481

 

Operating lease liabilities, noncurrent

 

 

78,128

 

 

 

85,018

 

Other liabilities, noncurrent

 

 

60,468

 

 

 

68,110

 

Total liabilities

 

 

2,081,366

 

 

 

1,771,300

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

Preferred stock

 

 

 

 

 

 

Common stock

 

 

292

 

 

 

299

 

Additional paid-in capital

 

 

3,572,368

 

 

 

3,749,514

 

Accumulated other comprehensive loss

 

 

(72,716

)

 

 

(17,902

)

Retained earnings

 

 

2,255,868

 

 

 

2,048,107

 

Total stockholders’ equity

 

 

5,755,812

 

 

 

5,780,018

 

Total liabilities and stockholders’ equity

 

$

7,837,178

 

 

$

7,551,318

 

Note: The amount of unbilled accounts receivable included within accounts receivable, net on the condensed consolidated balance sheets was $82.4 million and $59.7 million as of October 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 October 31,

 

Nine Months Ended October 31,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenue

$

1,101,899

 

 

$

1,050,756

 

 

$

3,275,157

 

 

$

3,028,488

 

Cost of revenue

 

270,665

 

 

 

270,957

 

 

 

806,097

 

 

 

797,207

 

Gross profit

 

831,234

 

 

 

779,799

 

 

 

2,469,060

 

 

 

2,231,281

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

195,946

 

 

 

98,508

 

 

 

512,801

 

 

 

245,994

 

Sales and marketing

 

427,747

 

 

 

293,698

 

 

 

1,191,004

 

 

 

810,544

 

General and administrative

 

141,033

 

 

 

96,736

 

 

 

389,939

 

 

 

362,971

 

Total operating expenses

 

764,726

 

 

 

488,942

 

 

 

2,093,744

 

 

 

1,419,509

 

Income from operations

 

66,508

 

 

 

290,857

 

 

 

375,316

 

 

 

811,772

 

(Losses) gains on strategic investments, net

 

(6,898

)

 

 

122,421

 

 

 

(78,014

)

 

 

154,497

 

Other expense, net

 

(4,861

)

 

 

(2,995

)

 

 

(8,482

)

 

 

(3,171

)

Income before provision for income taxes

 

54,749

 

 

 

410,283

 

 

 

288,820

 

 

 

963,098

 

Provision for income taxes

 

6,396

 

 

 

69,900

 

 

 

81,059

 

 

 

78,100

 

Net income

 

48,353

 

 

 

340,383

 

 

 

207,761

 

 

 

884,998

 

Undistributed earnings attributable to participating securities

 

 

 

 

(112

)

 

 

(17

)

 

 

(430

)

Net income attributable to common stockholders

$

48,353

 

 

$

340,271

 

 

$

207,744

 

 

$

884,568

 

 

 

 

 

 

 

 

 

Net income per share attributable to common stockholders:

 

 

 

 

 

 

 

Basic

$

0.16

 

 

$

1.14

 

 

$

0.70

 

 

$

2.99

 

Diluted

$

0.16

 

 

$

1.11

 

 

$

0.68

 

 

$

2.89

 

Weighted-average shares used in computing net income per share attributable to common stockholders:

 

 

 

 

 

 

 

Basic

 

295,537,026

 

 

 

297,375,011

 

 

 

297,765,848

 

 

 

295,647,626

 

Diluted

 

301,986,341

 

 

 

305,939,624

 

 

 

305,273,812

 

 

 

305,726,733

 

Zoom Video Communications, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

48,353

 

 

$

340,383

 

 

$

207,761

 

 

$

884,998

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

302,815

 

 

 

114,801

 

 

 

767,693

 

 

 

315,912

 

Amortization of deferred contract acquisition costs

 

67,124

 

 

 

46,299

 

 

 

186,626

 

 

 

125,691

 

Losses (gains) on strategic investments, net

 

6,898

 

 

 

(122,421

)

 

 

78,014

 

 

 

(154,497

)

Depreciation and amortization

 

21,766

 

 

 

12,584

 

 

 

57,921

 

 

 

35,275

 

Provision for accounts receivable allowances

 

12,853

 

 

 

8,890

 

 

 

39,580

 

 

 

23,482

 

Non-cash operating lease cost

 

5,882

 

 

 

4,498

 

 

 

16,949

 

 

 

13,131

 

Amortization of discount/premium on marketable securities

 

(665

)

 

 

6,909

 

 

 

4,156

 

 

 

19,546

 

Other

 

22,623

 

 

 

1,863

 

 

 

41,928

 

 

 

2,127

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

(112,122

)

 

 

8,718

 

 

 

(238,020

)

 

 

(108,541

)

Prepaid expenses and other assets

 

(27,102

)

 

 

(14,628

)

 

 

(163,721

)

 

 

(71,998

)

Deferred contract acquisition costs

 

(60,817

)

 

 

(62,708

)

 

 

(217,822

)

 

 

(165,305

)

Accounts payable

 

8,120

 

 

 

(31,898

)

 

 

24,561

 

 

 

12,062

 

Accrued expenses and other liabilities

 

52,129

 

 

 

78,105

 

 

 

116,391

 

 

 

171,914

 

Deferred revenue

 

(46,225

)

 

 

7,877

 

 

 

174,325

 

 

 

304,513

 

Operating lease liabilities, net

 

(6,318

)

 

 

(4,716

)

 

 

(17,668

)

 

 

(12,440

)

Net cash provided by operating activities

 

295,314

 

 

 

394,556

 

 

 

1,078,674

 

 

 

1,395,870

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of marketable securities

 

(350,196

)

 

 

(1,351,726

)

 

 

(1,927,049

)

 

 

(3,446,313

)

Maturities of marketable securities

 

831,199

 

 

 

255,639

 

 

 

2,137,875

 

 

 

1,047,545

 

Sales of marketable securities

 

 

 

 

162,013

 

 

 

 

 

 

281,582

 

Purchases of property and equipment

 

(22,698

)

 

 

(19,767

)

 

 

(75,568

)

 

 

(111,816

)

Purchases of strategic investments

 

(3,500

)

 

 

(39,449

)

 

 

(65,050

)

 

 

(126,349

)

Proceeds from strategic investments

 

300

 

 

 

 

 

 

300

 

 

 

 

Cash paid for acquisition, net of cash acquired

 

 

 

 

 

 

 

(120,553

)

 

 

(2,121

)

Purchases of intangible assets

 

(7,357

)

 

 

(9,626

)

 

 

(10,568

)

 

 

(9,626

)

Net cash provided by (used in) investing activities

 

447,748

 

 

 

(1,002,916

)

 

 

(60,613

)

 

 

(2,367,098

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid for repurchases of common stock

 

(564,832

)

 

 

 

 

 

(990,778

)

 

 

 

Proceeds from issuance of common stock for employee stock purchase plan

 

 

 

 

 

 

 

34,605

 

 

 

37,846

 

Proceeds from employee equity transactions (remitted) to be remitted to employees and tax authorities, net

 

3,216

 

 

 

(47,242

)

 

 

671

 

 

 

(28,342

)

Proceeds from exercise of stock options

 

1,750

 

 

 

3,023

 

 

 

6,815

 

 

 

11,044

 

Other

 

 

 

 

 

 

 

 

 

 

337

 

Net cash (used in) provided by financing activities

 

(559,866

)

 

 

(44,219

)

 

 

(948,687

)

 

 

20,885

 

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

(20,528

)

 

 

 

 

 

(36,639

)

 

 

 

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

162,668

 

 

 

(652,579

)

 

 

32,735

 

 

 

(950,343

)

Cash, cash equivalents, and restricted cash – beginning of period

 

943,420

 

 

 

1,995,352

 

 

 

1,073,353

 

 

 

2,293,116

 

Cash, cash equivalents, and restricted cash – end of period

$

1,106,088

 

 

$

1,342,773

 

 

$

1,106,088

 

 

$

1,342,773

 

Zoom Video Communications, Inc.
Reconciliation of GAAP to Non-GAAP Measures
(Unaudited, in thousands, except share and per share amounts)

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

GAAP income from operations

$

66,508

 

 

$

290,857

 

 

$

375,316

 

 

$

811,772

 

Add:

 

 

 

 

 

 

 

Stock-based compensation expense and related payroll taxes

 

305,258

 

 

 

118,708

 

 

 

780,712

 

 

 

339,825

 

Litigation settlements, net

 

 

 

 

 

 

 

(4,226

)

 

 

66,916

 

Acquisition-related expenses

 

9,119

 

 

 

1,713

 

 

 

22,450

 

 

 

18,317

 

Non-GAAP income from operations

$

380,885

 

 

$

411,278

 

 

$

1,174,252

 

 

$

1,236,830

 

GAAP operating margin

 

6.0

%

 

 

27.7

%

 

 

11.5

%

 

 

26.8

%

Non-GAAP operating margin

 

34.6

%

 

 

39.1

%

 

 

35.9

%

 

 

40.8

%

 

 

 

 

 

 

 

 

GAAP net income attributable to common stockholders

$

48,353

 

 

$

340,271

 

 

$

207,744

 

 

$

884,568

 

Add:

 

 

 

 

 

 

 

Stock-based compensation expense and related payroll taxes

 

305,258

 

 

 

118,708

 

 

 

780,712

 

 

 

339,825

 

Litigation settlements, net

 

 

 

 

 

 

 

(4,226

)

 

 

66,916

 

Losses (gains) on strategic investments, net

 

6,898

 

 

 

(122,421

)

 

 

78,014

 

 

 

(154,497

)

Acquisition-related expenses

 

9,119

 

 

 

1,713

 

 

 

22,450

 

 

 

18,317

 

Undistributed earnings attributable to participating securities

 

 

 

 

112

 

 

 

17

 

 

 

430

 

Tax effects on non-GAAP adjustments

 

(46,442

)

 

 

 

 

 

(122,254

)

 

 

 

Non-GAAP net income

$

323,186

 

 

$

338,383

 

 

$

962,457

 

 

$

1,155,559

 

 

 

 

 

 

 

 

 

Net income per share – basic and diluted:

 

 

 

 

 

 

 

GAAP net income per share – basic

$

0.16

 

 

$

1.14

 

 

$

0.70

 

 

$

2.99

 

Non-GAAP net income per share – basic

$

1.09

 

 

$

1.14

 

 

$

3.23

 

 

$

3.91

 

GAAP net income per share – diluted

$

0.16

 

 

$

1.11

 

 

$

0.68

 

 

$

2.89

 

Non-GAAP net income per share – diluted

$

1.07

 

 

$

1.11

 

 

$

3.15

 

 

$

3.78

 

 

 

 

 

 

 

 

 

GAAP and non-GAAP weighted-average shares used to compute net income per share – basic

 

295,537,026

 

 

 

297,375,011

 

 

 

297,765,848

 

 

 

295,647,626

 

GAAP and non-GAAP weighted-average shares used to compute net income per share – diluted

 

301,986,341

 

 

 

305,939,624

 

 

 

305,273,812

 

 

 

305,726,733

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

$

295,314

 

 

$

394,556

 

 

$

1,078,674

 

 

$

1,395,870

 

Less: Purchases of property and equipment

 

(22,698

)

 

 

(19,767

)

 

 

(75,568

)

 

 

(111,816

)

Free cash flow (non-GAAP)

$

272,616

 

 

$

374,789

 

 

$

1,003,106

 

 

$

1,284,054

 

Net cash provided by (used in) investing activities

$

447,748

 

 

$

(1,002,916

)

 

$

(60,613

)

 

$

(2,367,098

)

Net cash (used in) provided by financing activities

$

(559,866

)

 

$

(44,219

)

 

$

(948,687

)

 

$

20,885

 

Operating cash flow margin (GAAP)

 

26.8

%

 

 

37.5

%

 

 

32.9

%

 

 

46.1

%

 

 

 

 

 

 

 

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

 

2022

 

 

 

2022

 

 

Revenue

 

YoY Growth (%)

 

Revenue

 

YoY Growth (%)

GAAP revenue

$

1,101,899

 

 

 

5

%

 

$

3,275,157

 

 

 

8

%

Add: Constant currency impact

 

24,194

 

 

 

2

%

 

 

47,674

 

 

 

2

%

Revenue in constant currency (non-GAAP)

 

1,126,093

 

 

 

7

%

 

 

3,322,831

 

 

 

10

%

Next Post

Talos Expands EMEA Team with Key Sales & Business Development Hires

Fri Nov 25 , 2022
NEW YORK, Nov. 23, 2022 /PRNewswire/ — Talos, the premier provider of institutional digital asset trading technology, today announced the hires of Emi Lorincz as Director of Business Development EMEA, and Chris Soutar as Sales Director EMEA. These additions follow the recent appointment of Frank van Zegfeld as Head of […]