Zoom(ZM) - 2024 Q1 - Quarterly Report

Revenue Performance - Revenue for the three months ended April 30, 2023, was $1,105.4 million, representing a period-over-period growth of 2.9$1,073.8 million in the same period of 2022[99]. - Revenue for the three months ended April 30, 2023, was $1,105.4 million, representing a 2.9$1,073.8 million in the same period of 2022, driven by a 13% increase in subscription revenue from Enterprise customers[131]. - Revenue from Enterprise customers represented 57.2% of total revenue for the three months ended April 30, 2023, compared to 52.2% for the same period in 2022[106]. - Revenue from Online customers represented 42.8% of total revenue for the three months ended April 30, 2023, down from 47.8% for the same period in 2022[107]. - Revenue from the rest of the world (APAC and EMEA) represented 29% of total revenue for the three months ended April 30, 2023, down from 32% for the same period in 2022 due to macroeconomic conditions[113]. Profitability - Net income for the three months ended April 30, 2023, was $15.4 million, down from$113.7 million for the same period in 2022[99]. - Gross profit for the three months ended April 30, 2023, was $841.4 million, up 3.6$812.0 million in the same period of 2022, with a gross margin of 76.1% compared to 75.6%[130][133]. - Free Cash Flow (FCF) for the three months ended April 30, 2023, was $396.7 million, a decrease of 20.9$501.1 million in the same period of 2022[120]. - Other income for the three months ended April 30, 2023, was $31.2 million, a substantial increase of 546.6$7.0 million in the same period of 2022[139]. - Gains on strategic investments for the three months ended April 30, 2023, were $2.3 million, a significant recovery from losses of$36.4 million in the same period of 2022[138]. Customer Metrics - The trailing 12-month net dollar expansion rate for Enterprise customers was 112% as of April 30, 2023, down from 123% for the same period in 2022[106]. - As of April 30, 2023, the company had approximately 215,900 Enterprise customers, an increase from 198,900 as of April 30, 2022[116]. - Customers contributing more than $100,000 of trailing 12 months revenue represented 29$209.3 million for the three months ended April 30, 2023, compared to $144.3 million in the same period of 2022[134]. - Sales and marketing expenses rose by 16.5$422.5 million for the three months ended April 30, 2023, compared to $362.8 million in the same period of 2022[135]. - General and administrative expenses increased by 69.6$199.9 million for the three months ended April 30, 2023, compared to $117.8 million in the same period of 2022[137]. Cash Flow and Financial Position - Net cash provided by operating activities was$418.5 million for the three months ended April 30, 2023, a decrease of 20.5% compared to $526.2 million for the same period in 2022[147]. - Net cash used in investing activities was$480.8 million for the three months ended April 30, 2023, primarily due to net purchases of marketable securities of $208.5 million and cash paid for acquisitions of$199.4 million[148]. - Net cash provided by financing activities was $7.0 million for the three months ended April 30, 2023, compared to a net cash used of$133.2 million in the same period of 2022[150]. - Cash and cash equivalents totaled $1,029.5 million, with marketable securities amounting to$4,566.8 million as of April 30, 2023[155]. - As of April 30, 2023, the company had cash, cash equivalents, and marketable securities totaling $5.6 billion, available for working capital and growth investments[141]. Future Outlook - Future capital requirements will depend on factors such as revenue growth rate, subscription renewal activity, and expenses related to international expansion[145]. - The company may seek additional equity or debt financing in the future if necessary[145]. - There have been no material changes to cash requirements from known contractual obligations compared to previous disclosures[144]. - The company has not entered into derivative or hedging transactions for foreign currency exposure but may consider it in the future if exposure increases[154].