Zoom Video Communications, Inc. (NASDAQ: ZM) today announced
financial results for the third fiscal quarter ended
October 31, 2021.
“In Q3, we held our premier user event, Zoomtopia, on our Zoom
Events service. During this immersive, multi-track conference, we
showcased how Zoom is placing people at the center of our
communications platform, connecting their disparate work streams
into our technology, moving beyond enterprises’ ability to
collaborate internally, and empowering them to communicate
face-to-face with their customers through Zoom Events and our
upcoming Video Engagement Center. We also showcased innovations
such as hot desking, whiteboarding, and smart gallery, all designed
to empower both co-located and remote hybrid workforces as some
companies test return to office programs,” said Zoom founder and
CEO, Eric S. Yuan. “Through innovation and dedication, we will
continue to deliver happiness to our customers. Looking forward, we
expect to close the year between $4.079 to $4.081 billion in total
revenue, representing approximately 54% year-over-year growth,
alongside strong profitability and operating cash flow growth. We
are well on our way to becoming an indispensable platform for
enterprises, individuals, and developers to connect, collaborate,
and build in the flexible hybrid world of work. We believe our
global brand, innovative technologies, and large customer base
position us well for the future.”
Third Quarter Fiscal Year 2022 Financial
Highlights:
- Revenue: Total
revenue for the third quarter was $1,050.8 million, up 35% year
over year.
- Income from Operations and
Operating Margin: GAAP income from operations for the
third quarter was $290.9 million, up from $192.2 million in
the third quarter of fiscal year 2021. 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 $411.3 million, up from $290.8 million in the
third quarter of fiscal year 2021. For the third quarter, GAAP
operating margin was 27.7% and non-GAAP operating margin was
39.1%.
- Net Income and Diluted Net
Income Per Share: GAAP net income attributable to common
stockholders for the third quarter was $340.3 million, or $1.11 per
share, up from $198.4 million, or $0.66 per share in the third
quarter of fiscal year 2021.Non-GAAP net income for the third
quarter was $338.4 million, after adjusting for stock-based
compensation expense and related payroll taxes, acquisition-related
expenses, gains on strategic investments, net, and undistributed
earnings attributable to participating securities. Non-GAAP net
income per share was $1.11. In the third quarter of fiscal year
2021, non-GAAP net income was $297.2 million, or $0.99 per
share.
- Cash and Marketable
Securities: Total cash, cash equivalents, and marketable
securities, excluding restricted cash, as of October 31, 2021
was $5.4 billion.
- Cash Flow: Net cash
provided by operating activities was $394.6 million for the third
quarter, compared to $411.5 million in the third quarter of
fiscal year 2021. Free cash flow, which is net cash provided by
operating activities less purchases of property and equipment, was
$374.8 million, compared to $388.2 million in the third
quarter of fiscal year 2021.
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 2022,
Zoom had:
- 2,507 customers contributing more than
$100,000 in trailing 12 months revenue, up approximately 94% from
the same quarter last fiscal year.
- Approximately 512,100 customers with
more than 10 employees, up approximately 18% from the same quarter
last fiscal year.
- A trailing 12-month net dollar
expansion rate in customers with more than 10 employees above 130%
for the 14th consecutive quarter.
Financial Outlook: Zoom is providing the
following guidance for its fourth quarter fiscal year 2022 and its
full fiscal year 2022.
- Fourth Quarter Fiscal Year 2022: Total
revenue is expected to be between $1.051 billion and $1.053 billion
and non-GAAP income from operations is expected to be between
$361.0 million and $363.0 million. Non-GAAP diluted EPS is expected
to be between $1.06 and $1.07 with approximately 307 million
non-GAAP weighted average shares outstanding.
- Full Fiscal Year 2022: Total revenue is
expected to be between $4.079 billion and $4.081 billion. Non-GAAP
income from operations is expected to be between $1.598 billion and
$1.600 billion. Non-GAAP diluted EPS is expected to be between
$4.84 and $4.85 with approximately 306 million non-GAAP 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.
Zoom Video Earnings Call
Zoom will host a Zoom Video Webinar for investors on
November 22, 2021 at 2:00 p.m. Pacific Time / 5:00 p.m.
Eastern Time to discuss the company’s financial results, outlook
and business highlights. Investors are invited to join the Zoom
Video Webinar by visiting: https://investors.zoom.us/
About Zoom
Zoom is for you. We help you express ideas, connect to others,
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 StatementsThis press release
contains express and implied “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding our financial outlook for the
fourth quarter of fiscal year 2022 and full fiscal year 2022,
Zoom’s market position, and Zoom’s growth strategy and business
aspirations to become an indispensable platform for individuals,
enterprises, and developers to connect, collaborate and build in
the hybrid world. 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 once the impact of the COVID-19
pandemic tapers, particularly as vaccines become widely available
and distributed, and 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 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, and failures in internet infrastructure or interference
with broadband access which could cause current or potential users
to believe that our systems are unreliable. 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,
2021. 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 Margins.
Zoom defines non-GAAP income from operations as income from
operations excluding stock-based compensation expense and related
payroll taxes, expenses related to charitable donation of common
stock, acquisition-related expenses, and litigation settlements,
net. Zoom excludes stock-based compensation expense and expenses
related to charitable donation of common stock because they are
non-cash in nature and excluding these expenses 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,
expenses related to charitable donation of common stock,
acquisition-related expenses, litigation settlements, net, gains on
strategic investments, net, and undistributed earnings attributable
to participating securities. 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.
In order to calculate non-GAAP net income per share, basic and
diluted, Zoom uses a non-GAAP weighted-average share count. Zoom
defines non-GAAP weighted-average shares used to compute non-GAAP
net income per share, basic and diluted, as GAAP weighted average
shares used to compute net income per share attributable to common
stockholders, basic and diluted, adjusted to reflect the common
stock issued in connection with the IPO, including the concurrent
private placement, that are outstanding as of the end of the period
as if they were outstanding as of the beginning of the period for
comparability.
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 provides 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.
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 calculates net dollar expansion rate as of a period end by
starting with the annual recurring revenue (“ARR”) from all
customers with more than 10 employees 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.
We then calculate the ARR from these 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.
Press Relations
Colleen RodriguezGlobal Public Relations Lead for
Zoompress@zoom.us
Investor Relations
Tom McCallumHead of Investor Relations for
Zoominvestors@zoom.us
Zoom Video Communications,
Inc.Condensed Consolidated Balance
Sheets(In thousands)
|
|
As of |
|
|
October 31,2021 |
|
January 31,2021 |
Assets |
|
(unaudited) |
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
1,322,435 |
|
|
|
$ |
2,240,303 |
|
Marketable securities |
|
4,095,520 |
|
|
|
2,004,410 |
|
Accounts receivable, net |
|
377,874 |
|
|
|
294,703 |
|
Deferred contract acquisition costs, current |
|
177,966 |
|
|
|
136,630 |
|
Prepaid expenses and other current assets |
|
138,921 |
|
|
|
116,819 |
|
Total current assets |
|
6,112,716 |
|
|
|
4,792,865 |
|
Deferred contract acquisition
costs, noncurrent |
|
155,541 |
|
|
|
157,262 |
|
Property and equipment,
net |
|
212,655 |
|
|
|
149,924 |
|
Operating lease right-of-use
assets |
|
88,335 |
|
|
|
97,649 |
|
Strategic investments |
|
299,750 |
|
|
|
18,668 |
|
Goodwill |
|
26,247 |
|
|
|
24,340 |
|
Other assets, noncurrent |
|
83,727 |
|
|
|
57,285 |
|
Total assets |
|
$ |
6,978,971 |
|
|
|
$ |
5,297,993 |
|
Liabilities and
stockholders’ equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
20,064 |
|
|
|
$ |
8,664 |
|
Accrued expenses and other current liabilities |
|
509,874 |
|
|
|
393,018 |
|
Deferred revenue, current |
|
1,161,442 |
|
|
|
858,284 |
|
Total current liabilities |
|
1,691,380 |
|
|
|
1,259,966 |
|
Deferred revenue,
noncurrent |
|
24,677 |
|
|
|
25,211 |
|
Operating lease liabilities,
noncurrent |
|
79,319 |
|
|
|
90,415 |
|
Other liabilities,
noncurrent |
|
69,910 |
|
|
|
61,634 |
|
Total liabilities |
|
1,865,286 |
|
|
|
1,437,226 |
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
297 |
|
|
|
292 |
|
Additional paid-in capital |
|
3,561,050 |
|
|
|
3,187,168 |
|
Accumulated other comprehensive (loss) income |
|
(5,128 |
) |
|
|
839 |
|
Retained earnings |
|
1,557,466 |
|
|
|
672,468 |
|
Total stockholders’
equity |
|
5,113,685 |
|
|
|
3,860,767 |
|
Total liabilities and
stockholders’ equity |
|
$ |
6,978,971 |
|
|
|
$ |
5,297,993 |
|
Note: The amount of unbilled accounts receivable included within
accounts receivable, net on the condensed consolidated balance
sheets was $48.6 million and $24.6 million as of October 31,
2021 and January 31, 2021, 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, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenue |
|
$ |
1,050,756 |
|
|
|
$ |
777,196 |
|
|
|
$ |
3,028,488 |
|
|
|
$ |
1,768,883 |
|
|
Cost of revenue |
|
270,957 |
|
|
|
258,727 |
|
|
|
797,207 |
|
|
|
554,705 |
|
|
Gross profit |
|
779,799 |
|
|
|
518,469 |
|
|
|
2,231,281 |
|
|
|
1,214,178 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
98,508 |
|
|
|
42,582 |
|
|
|
245,994 |
|
|
|
111,705 |
|
|
Sales and marketing |
|
293,698 |
|
|
|
190,157 |
|
|
|
810,544 |
|
|
|
470,886 |
|
|
General and administrative |
|
96,736 |
|
|
|
93,488 |
|
|
|
362,971 |
|
|
|
227,856 |
|
|
Total operating expenses |
|
488,942 |
|
|
|
326,227 |
|
|
|
1,419,509 |
|
|
|
810,447 |
|
|
Income from operations |
|
290,857 |
|
|
|
192,242 |
|
|
|
811,772 |
|
|
|
403,731 |
|
|
Gains on strategic investments,
net |
|
122,421 |
|
|
|
— |
|
|
|
154,497 |
|
|
|
2,538 |
|
|
Interest income and other,
net |
|
(2,995 |
) |
|
|
1,779 |
|
|
|
(3,171 |
) |
|
|
7,112 |
|
|
Income before provision for
(benefit from) income taxes |
|
410,283 |
|
|
|
194,021 |
|
|
|
963,098 |
|
|
|
413,381 |
|
|
Provision for (benefit from)
income taxes |
|
69,900 |
|
|
|
(4,621 |
) |
|
|
78,100 |
|
|
|
1,675 |
|
|
Net income |
|
340,383 |
|
|
|
198,642 |
|
|
|
884,998 |
|
|
|
411,706 |
|
|
Undistributed earnings
attributable to participating securities |
|
(112 |
) |
|
|
(202 |
) |
|
|
(430 |
) |
|
|
(531 |
) |
|
Net income attributable to
common stockholders |
|
$ |
340,271 |
|
|
|
$ |
198,440 |
|
|
|
$ |
884,568 |
|
|
|
$ |
411,175 |
|
|
|
|
|
|
|
|
|
|
|
Net income per share
attributable to common stockholders: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.14 |
|
|
|
$ |
0.70 |
|
|
|
$ |
2.99 |
|
|
|
$ |
1.46 |
|
|
Diluted |
|
$ |
1.11 |
|
|
|
$ |
0.66 |
|
|
|
$ |
2.89 |
|
|
|
$ |
1.38 |
|
|
Weighted-average shares used
in computing net income per share attributable to common
stockholders: |
|
|
|
|
|
|
|
|
Basic |
|
297,375,011 |
|
|
|
284,783,006 |
|
|
|
295,647,626 |
|
|
|
282,564,481 |
|
|
Diluted |
|
305,939,624 |
|
|
|
299,258,765 |
|
|
|
305,726,733 |
|
|
|
297,605,941 |
|
|
Zoom Video Communications,
Inc.Condensed Consolidated Statements of Cash
Flows(Unaudited, in thousands)
|
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
340,383 |
|
|
|
$ |
198,642 |
|
|
|
$ |
884,998 |
|
|
|
$ |
411,706 |
|
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
114,801 |
|
|
|
93,925 |
|
|
|
315,912 |
|
|
|
179,557 |
|
|
Amortization of deferred contract acquisition costs |
|
46,299 |
|
|
|
30,500 |
|
|
|
125,691 |
|
|
|
71,281 |
|
|
Gains on strategic investments, net |
|
(122,421 |
) |
|
|
— |
|
|
|
(154,497 |
) |
|
|
(2,538 |
) |
|
Charitable donation of common stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
23,312 |
|
|
Provision for accounts receivable allowances |
|
8,890 |
|
|
|
5,259 |
|
|
|
23,482 |
|
|
|
20,218 |
|
|
Depreciation and amortization |
|
12,584 |
|
|
|
7,587 |
|
|
|
35,275 |
|
|
|
19,401 |
|
|
Non-cash operating lease cost |
|
4,498 |
|
|
|
2,585 |
|
|
|
13,131 |
|
|
|
7,182 |
|
|
Amortization on marketable securities |
|
6,909 |
|
|
|
1,597 |
|
|
|
19,546 |
|
|
|
2,787 |
|
|
Other |
|
1,863 |
|
|
|
92 |
|
|
|
2,127 |
|
|
|
930 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
8,718 |
|
|
|
6,809 |
|
|
|
(108,541 |
) |
|
|
(190,117 |
) |
|
Prepaid expenses and other assets |
|
(14,628 |
) |
|
|
5,471 |
|
|
|
(71,998 |
) |
|
|
(48,258 |
) |
|
Deferred contract acquisition costs |
|
(62,708 |
) |
|
|
(52,504 |
) |
|
|
(165,305 |
) |
|
|
(266,294 |
) |
|
Accounts payable |
|
(31,898 |
) |
|
|
(2,098 |
) |
|
|
12,062 |
|
|
|
8,773 |
|
|
Accrued expenses and other liabilities |
|
78,105 |
|
|
|
1,853 |
|
|
|
171,914 |
|
|
|
203,919 |
|
|
Deferred revenue |
|
7,877 |
|
|
|
114,451 |
|
|
|
304,513 |
|
|
|
633,600 |
|
|
Operating lease liabilities, net |
|
(4,716 |
) |
|
|
(2,699 |
) |
|
|
(12,440 |
) |
|
|
(3,678 |
) |
|
Net cash provided by operating activities |
|
394,556 |
|
|
|
411,470 |
|
|
|
1,395,870 |
|
|
|
1,071,781 |
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
Purchases of marketable securities |
|
(1,351,726 |
) |
|
|
(531,227 |
) |
|
|
(3,446,313 |
) |
|
|
(1,016,109 |
) |
|
Maturities of marketable securities |
|
255,639 |
|
|
|
119,269 |
|
|
|
1,047,545 |
|
|
|
406,607 |
|
|
Sales of marketable securities |
|
162,013 |
|
|
|
— |
|
|
|
281,582 |
|
|
|
36,897 |
|
|
Purchases of property and equipment |
|
(19,767 |
) |
|
|
(23,264 |
) |
|
|
(111,816 |
) |
|
|
(58,517 |
) |
|
Purchases of strategic investments |
|
(39,449 |
) |
|
|
— |
|
|
|
(126,349 |
) |
|
|
(13,000 |
) |
|
Cash paid for acquisition, net of cash acquired |
|
— |
|
|
|
— |
|
|
|
(2,121 |
) |
|
|
(26,486 |
) |
|
Purchase of intangible assets |
|
(9,626 |
) |
|
|
(2,891 |
) |
|
|
(9,626 |
) |
|
|
(4,385 |
) |
|
Other |
|
— |
|
|
|
297 |
|
|
|
— |
|
|
|
1,616 |
|
|
Net cash used in investing activities |
|
(1,002,916 |
) |
|
|
(437,816 |
) |
|
|
(2,367,098 |
) |
|
|
(673,377 |
) |
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock for employee stock purchase
plan |
|
— |
|
|
|
— |
|
|
|
37,846 |
|
|
|
20,760 |
|
|
Proceeds from employee equity transactions (remitted) to be
remitted to employees and tax authorities, net |
|
(47,242 |
) |
|
|
17,176 |
|
|
|
(28,342 |
) |
|
|
251,641 |
|
|
Proceeds from exercise of stock options |
|
3,023 |
|
|
|
6,424 |
|
|
|
11,044 |
|
|
|
23,841 |
|
|
Other |
|
— |
|
|
|
— |
|
|
|
337 |
|
|
|
— |
|
|
Net cash (used in) provided by financing activities |
|
(44,219 |
) |
|
|
23,600 |
|
|
|
20,885 |
|
|
|
296,242 |
|
|
Net (decrease) increase in
cash, cash equivalents, and restricted cash |
|
(652,579 |
) |
|
|
(2,746 |
) |
|
|
(950,343 |
) |
|
|
694,646 |
|
|
Cash, cash equivalents, and
restricted cash – beginning of period |
|
1,995,352 |
|
|
|
1,031,474 |
|
|
|
2,293,116 |
|
|
|
334,082 |
|
|
Cash, cash equivalents, and
restricted cash – end of period |
|
$ |
1,342,773 |
|
|
|
$ |
1,028,728 |
|
|
|
$ |
1,342,773 |
|
|
|
$ |
1,028,728 |
|
|
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, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
GAAP income from operations |
|
$ |
290,857 |
|
|
|
$ |
192,242 |
|
|
|
$ |
811,772 |
|
|
|
$ |
403,731 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Stock-based compensation expense and related payroll taxes |
|
118,708 |
|
|
|
97,131 |
|
|
|
339,825 |
|
|
|
188,979 |
|
|
Litigation settlements, net |
|
— |
|
|
|
— |
|
|
|
66,916 |
|
|
|
— |
|
|
Acquisition-related expenses |
|
1,713 |
|
|
|
1,398 |
|
|
|
18,317 |
|
|
|
6,340 |
|
|
Charitable donation of common stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
23,312 |
|
|
Non-GAAP income from
operations |
|
$ |
411,278 |
|
|
|
$ |
290,771 |
|
|
|
$ |
1,236,830 |
|
|
|
$ |
622,362 |
|
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable
to common stockholders |
|
$ |
340,271 |
|
|
|
$ |
198,440 |
|
|
|
$ |
884,568 |
|
|
|
$ |
411,175 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Stock-based compensation expense and related payroll taxes |
|
118,708 |
|
|
|
97,131 |
|
|
|
339,825 |
|
|
|
188,979 |
|
|
Litigation settlements, net |
|
— |
|
|
|
— |
|
|
|
66,916 |
|
|
|
— |
|
|
Gains on strategic investments, net |
|
(122,421 |
) |
|
|
— |
|
|
|
(154,497 |
) |
|
|
— |
|
|
Acquisition-related expenses |
|
1,713 |
|
|
|
1,398 |
|
|
|
18,317 |
|
|
|
6,340 |
|
|
Charitable donation of common stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
23,312 |
|
|
Undistributed earnings attributable to participating
securities |
|
112 |
|
|
|
202 |
|
|
|
430 |
|
|
|
531 |
|
|
Non-GAAP net income |
|
$ |
338,383 |
|
|
|
$ |
297,171 |
|
|
|
$ |
1,155,559 |
|
|
|
$ |
630,337 |
|
|
|
|
|
|
|
|
|
|
|
Net income per share - basic
and diluted: |
|
|
|
|
|
|
|
|
GAAP net income per share - basic |
|
$ |
1.14 |
|
|
|
$ |
0.70 |
|
|
|
$ |
2.99 |
|
|
|
$ |
1.46 |
|
|
Non-GAAP net income per share - basic |
|
$ |
1.14 |
|
|
|
$ |
1.04 |
|
|
|
$ |
3.91 |
|
|
|
$ |
2.23 |
|
|
GAAP net income per share - diluted |
|
$ |
1.11 |
|
|
|
$ |
0.66 |
|
|
|
$ |
2.89 |
|
|
|
$ |
1.38 |
|
|
Non-GAAP net income per share - diluted |
|
$ |
1.11 |
|
|
|
$ |
0.99 |
|
|
|
$ |
3.78 |
|
|
|
$ |
2.12 |
|
|
|
|
|
|
|
|
|
|
|
GAAP and non-GAAP
weighted-average shares used to compute net income per share -
basic |
|
297,375,011 |
|
|
|
284,783,006 |
|
|
|
295,647,626 |
|
|
|
282,564,481 |
|
|
GAAP and non-GAAP
weighted-average shares used to compute net income per share -
diluted |
|
305,939,624 |
|
|
|
299,258,765 |
|
|
|
305,726,733 |
|
|
|
297,605,941 |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating
activities |
|
$ |
394,556 |
|
|
|
$ |
411,470 |
|
|
|
$ |
1,395,870 |
|
|
|
$ |
1,071,781 |
|
|
Less: |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
(19,767 |
) |
|
|
(23,264 |
) |
|
|
(111,816 |
) |
|
|
(58,517 |
) |
|
Free cash flow (non-GAAP) |
|
$ |
374,789 |
|
|
|
$ |
388,206 |
|
|
|
$ |
1,284,054 |
|
|
|
$ |
1,013,264 |
|
|
Net cash used in investing
activities |
|
$ |
(1,002,916 |
) |
|
|
$ |
(437,816 |
) |
|
|
$ |
(2,367,098 |
) |
|
|
$ |
(673,377 |
) |
|
Net cash (used in) provided by
financing activities |
|
$ |
(44,219 |
) |
|
|
$ |
23,600 |
|
|
|
$ |
20,885 |
|
|
|
$ |
296,242 |
|
|
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