Financial Data and Key Metrics - Total revenue grew approximately 4% YoY to $1.178 billion, exceeding guidance by $13 million [24] - Enterprise revenue grew 6% YoY, now representing 59% of total revenue, up 1 point YoY [24] - Average Monthly Churn decreased to 2.7%, down 30 basis points YoY, the lowest ever reported [25] - Non-GAAP gross margin was 78.9%, down from 79.7% YoY, primarily due to AI investments [27] - Non-GAAP operating income was $458 million, exceeding guidance, with a 38.9% operating margin [28] - Non-GAAP diluted EPS was $1.38, $0.07 above guidance and $0.09 higher than Q3 last year [29] - Deferred revenue grew 5% YoY to $1.38 billion, with RPO increasing 5% YoY to $3.74 billion [30] Business Line Performance - Zoom AI Companion Monthly Active Users grew 59% QoQ [23] - Workvivo customers grew 72% YoY, driven by the Meta partnership [23] - Zoom Contact Center customers surpassed 1,250, up 82% YoY [23] - Enterprise customers contributing over $100,000 in TTM revenue grew 7% YoY, now representing 31% of revenue [25] Market Performance - Americas revenue grew 4% YoY, EMEA grew 5%, and APAC was flat [26] - On a constant currency basis, EMEA grew 3% and APAC grew 2% YoY [26] Strategy and Industry Competition - The company unveiled its new vision as an AI-first Work Platform for Human Connection, extending its strengths in unified communication and collaboration [7] - AI Companion 2.0 was released, showcasing innovation and customer obsession, with features like Meeting Summary and Smart Compose [9] - Custom AI Companion add-ons for Healthcare and Education were announced, aiming to meet specific industry needs [13] - Zoom Workplace for Frontline was introduced, targeting industries like retail, healthcare, and manufacturing [14] - Contact Center and Workvivo are key pillars of the strategy, with significant traction in both areas [15] Management Commentary on Operating Environment and Future Outlook - The company expects Q4 revenue to be in the range of $1.175 billion to $1.18 billion, representing approximately 2.7% YoY growth [31] - Full-year FY25 revenue is expected to be in the range of $4.656 billion to $4.661 billion, representing approximately 2.9% YoY growth [32] - The company raised its top-line and profitability outlook for FY25, with non-GAAP operating income expected to be in the range of $1.813 billion to $1.818 billion [32] - The Board authorized an incremental $1.2 billion share repurchase, bringing total unexecuted buy-back to approximately $2 billion [33] Other Important Information - The company announced a new corporate name: Zoom Communications, Inc., reflecting its evolution into an AI-first work platform [21] - The company highlighted significant customer wins, including a 20,000-seat Contact Center deal with Spain's national revenue service [17] - Integration with ServiceNow's Now Assist was deepened to bolster Generative AI product offerings [18] Q&A Session Question: Customer interest in AI and roadmap - Customers are highly interested in AI, with over 4 million accounts already enabled with AI Companion [37] - Feedback on AI Companion 2.0 was extremely positive, with customers appreciating the innovation and no additional cost [37] Question: Budget allocation for AI and macroeconomic outlook - Companies are allocating budgets for AI differently, with some consolidating into existing vendors and others shifting budgets from other areas [43] - The macroeconomic environment is improving, but it is too early to tell the full impact on spending [46] Question: Factors driving the 20,000-seat Contact Center deal - The deal was driven by trust in Zoom's scalable architecture, feature set, and pace of innovation [51] - The company's ability to support large deployments from day one was a key differentiator [52] Question: CFO's perspective on the job and future outlook - The CFO is focused on accelerating top-line growth, managing margins, and capital allocation [61] - The company will provide FY26 guidance in the next earnings call [61] Question: AI investments and impact on gross margins - AI investments are focused on back-end infrastructure, Workplace platform, and Contact Center features [66] - The company expects to monetize AI through customized AI Companion and Contact Center offerings [67] Question: Monetization opportunities for AI - AI monetization is already happening through Contact Center and Revenue Accelerator, with more opportunities expected in the second half of next year [76] - Customized AI Companion and AI Companion Studio will be available in the first half of next year, offering monetization potential [77] Question: Growth drivers for next year - The foundation of Zoom's growth is the meetings platform, with emerging products like Contact Center and Workvivo driving future growth [84] - International growth, channel expansion, and up-market opportunities are additional growth vectors [86] Question: Deferred revenue growth and conservatism in guidance - Deferred revenue growth was driven by tightening discounting and lengthening billing terms, with similar dynamics expected in Q4 [90] - Revenue is considered a better measure of business performance than deferred revenue [93] Question: Market strategy and importance of price - The company's strategy is based on better product, better price, and better service, with a focus on building long-term trust [96] - The platform approach and AI at no additional cost are key differentiators [98] Question: Workvivo growth and Meta partnership - Workvivo growth is driven by the Meta partnership, with strong pipeline and momentum [105] - The company is focused on innovating and growing the Workvivo business [106] Question: Path to long-term operating margins - The company is investing in AI, emerging growth businesses, and the platform, with a disciplined approach to expenses [112] - Long-term margin guidance is lower than current levels due to these investments [113] Question: Customer interest in integrating data into AI Companion - Customers are showing strong interest in integrating internal data into AI Companion, driving monetization and product stickiness [120] - The company's open platform approach and competitive pricing are key differentiators [123]

Zoom Video Communications (ZM) reported $1.18 billion in revenue for the quarter ended October 2024, representing a year-over-year increase of 3.6%. EPS of $1.38 for the same period compares to $1.29 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.16 billion, representing a surprise of +1.23%. The company delivered an EPS surprise of +5.34%, with the consensus EPS estimate being $1.31.While investors scrutinize revenue and earnings changes year-over-year and how they compare w ...

Zoom Video Communications (ZM) came out with quarterly earnings of $1.38 per share, beating the Zacks Consensus Estimate of $1.31 per share. This compares to earnings of $1.29 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.34%. A quarter ago, it was expected that this video-conferencing company would post earnings of $1.21 per share when it actually produced earnings of $1.39, delivering a surprise of 14.88%.Over the last f ...

Zoom Communications Q3 FY25 Earnings November 25, 2024 | --- | --- | |-----------------------------|-------| | | | | | | | Use of non-GAAP financial | | | measures | | In addition to the financials presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this presentation includes the following non-GAAP metrics: Revenue in Constant Currency, non-GAAP gross profit, non-GAAP gross margin, non-GAAP R&D expense, non-GAAP S&M expense, non-GAAP G&A expense, non-GAAP operating margin, n ...

Eric Yuan, founder and CEO of Zoom Video Communications, speaks at Concordia Annual Summit in New York on Sept. 25, 2024.Zoom shares were down about 1% in extended trading on Monday after the video calling software maker announced strong fiscal third-quarter results and gave guidance in line with expectations.Here's how the company did in comparison with LSEG consensus:Earnings per share: $1.38 adjusted vs. $1.31 expectedRevenue: $1.18 billion vs. $1.16 billion expectedZoom's revenue grew about 4% year over ...

Third quarter total revenue of $1,177.5 million, up 3.6% year over year as reported and in constant currencyThird quarter Enterprise revenue of $698.9 million, up 5.8% year over yearThird quarter GAAP operating margin of 15.5% and non-GAAP operating margin of 38.9%Number of customers contributing more than $100,000 in trailing 12 months revenue up 7.1% year over yearRepurchased approximately 4.4 million shares of common stock in third quarterIncreased total common stock repurchase authorization by $1.2 bill ...

Zoom Video Communications, Inc. ZM will release earnings results for its third quarter, after the closing bell on Monday, Nov. 25.Analysts expect the San Jose, California-based bank to report quarterly earnings at $1.31 per share, up from $1.29 per share in the year-ago period. Zoom Video projects to report revenue of $1.16 billion for the recent quarter, compared to $1.14 billion a year earlier, according to data from Benzinga Pro.On Aug. 21, Zoom reported quarterly earnings of $1.39 per share which beat t ...

This account is managed by Noah's Arc Capital Management. Our goal is provide Wall Street level insights to main street investors. Our research focus is mainly on 20th century stocks (old economy) undergoing a 21st century transformation, but occasionally we'll write on companies that help transform 20th century firms as well. We look for innovations in a business model that will cause a stock to change dramatically. Associated with SA contributors Thomas Potter and Elijah Buell.Analyst’s Disclosure: I/we h ...

Zoom Video Communications Inc (NASDAQ:ZM) is gearing up for its latest earnings report, due out after the close on Monday, Nov. 25. Zoom Video stock jumped 13% after its most recent report in August, though this was only the third post-earnings pop in the last eight quarters. The options pits are pricing in a 10.9% next-day swing this time around, regardless of direction. On the charts, ZM pulled back after its recent Nov. 13 two-year high of $87.15, though it's looking to snap that five-day losing streak t ...

Analysts on Wall Street project that Zoom Video Communications (ZM) will announce quarterly earnings of $1.31 per share in its forthcoming report, representing an increase of 1.6% year over year. Revenues are projected to reach $1.16 billion, increasing 2.3% from the same quarter last year.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Before a compan ...