Zoom Video Communications, Inc. (NASDAQ: ZM) is updating this press
release to include the “Amortization on marketable securities” line
item in its condensed consolidated statements of cash flows.
Complete corrected text follows.
Zoom Video Communications, Inc. (NASDAQ: ZM) today announced
financial results for the second fiscal quarter ended July 31,
2021.
“In Q2, we achieved our first billion dollar revenue quarter
while delivering strong profitability and cash flow,” said Zoom
founder and CEO, Eric S. Yuan. “Q2 also marked several milestones
on our expansion beyond the UC platform. We launched Zoom Apps,
bringing over 50 apps directly into the Zoom experience, and Zoom
Events, an all-in-one digital events service. Today we are a global
brand counting over half a million customers with more than 10
employees, which we believe positions us extremely well to support
organizations and individuals as they look to reimagine work,
communications, and collaboration.”
Second Quarter Fiscal Year 2022 Financial
Highlights:
- Revenue: Total
revenue for the second quarter was $1,021.5 million, up 54% year
over year.
- Income from Operations and
Operating Margin: GAAP income from operations for the
second quarter was $294.6 million, up from $188.1 million in
the second quarter of fiscal year 2021. After adjusting for
stock-based compensation expense and related payroll taxes,
acquisition-related expenses, and expenses related to charitable
donation of common stock, non-GAAP income from operations for the
second quarter was $424.7 million, up from $277.0 million in the
second quarter of fiscal year 2021. For the second quarter, GAAP
operating margin was 28.8% and non-GAAP operating margin was
41.6%.
- Net Income and Diluted Net
Income Per Share: GAAP net income attributable to common
stockholders for the second quarter was $316.9 million, or $1.04
per share, up from $185.7 million, or $0.63 per share in the second
quarter of fiscal year 2021.Non-GAAP net income for the quarter was
$415.1 million, after adjusting for stock-based compensation
expense and related payroll taxes, acquisition-related expenses,
gains on strategic investments, undistributed earnings attributable
to participating securities, and expenses related to charitable
donation of common stock. Non-GAAP net income per share was $1.36.
In the second quarter of fiscal year 2021, non-GAAP net income was
$274.8 million, or $0.92 per share.
- Cash and Marketable
Securities: Total cash, cash equivalents, and marketable
securities, excluding restricted cash, as of July 31, 2021 was
$5.1 billion.
- Cash Flow: Net cash
provided by operating activities was $468.0 million for the second
quarter, compared to $401.3 million in the second quarter of
fiscal year 2021. Free cash flow, which is net cash provided by
operating activities less purchases of property and equipment, was
$455.0 million, compared to $373.4 million in the second
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 second quarter of fiscal year 2022,
Zoom had:
- 2,278 customers contributing more than
$100,000 in trailing 12 months revenue, up approximately 131% from
the same quarter last fiscal year.
- Approximately 504,900 customers with
more than 10 employees, up approximately 36% 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 13th consecutive quarter.
Financial Outlook: Zoom is providing the
following guidance for its third quarter fiscal year 2022 and its
full fiscal year 2022.
- Third Quarter Fiscal Year 2022: Total
revenue is expected to be between $1.015 billion and $1.020 billion
and non-GAAP income from operations is expected to be between
$340.0 million and $345.0 million. Non-GAAP diluted EPS is expected
to be between $1.07 and $1.08 with approximately 309 million
non-GAAP weighted average shares outstanding.
- Full Fiscal Year 2022: Total revenue is
expected to be between $4.005 billion and $4.015 billion. Non-GAAP
income from operations is expected to be between $1.500 billion and
$1.510 billion. Non-GAAP diluted EPS is expected to be between
$4.75 and $4.79 with approximately 308 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 CallZoom will host a Zoom
Video Webinar for investors on August 30, 2021 at 2:00 p.m.
Pacific Time / 5:00 p.m. Eastern Time to discuss the company’s
financial results and business highlights. Investors are invited to
join the Zoom Video Webinar by
visiting: https://investors.zoom.us/
About ZoomZoom 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
third quarter of fiscal year 2022 and full fiscal year 2022, Zoom’s
growth strategy and business aspirations to support organizations
and people on multiple fronts as they look to reimagine work,
communications and collaboration. 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 a vaccine becomes widely
available, and users return to work or school or are otherwise no
longer subject to shelter-in-place mandates, 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
April 30, 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 MeasuresZoom 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, and undistributed earnings attributable to
participating securities. Zoom excludes gains on strategic
investments 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 MetricsZoom 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(Unaudited, in thousands)
|
|
As of |
|
|
July 31,2021 |
|
January 31,2021 |
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
1,931,370 |
|
|
$ |
2,240,303 |
|
Marketable securities |
|
3,174,029 |
|
|
2,004,410 |
|
Accounts receivable, net |
|
395,266 |
|
|
294,703 |
|
Deferred contract acquisition costs, current |
|
162,126 |
|
|
136,630 |
|
Prepaid expenses and other current assets |
|
172,288 |
|
|
116,819 |
|
Total current assets |
|
5,835,079 |
|
|
4,792,865 |
|
Deferred contract acquisition
costs, noncurrent |
|
154,971 |
|
|
157,262 |
|
Property and equipment,
net |
|
193,852 |
|
|
149,924 |
|
Operating lease right-of-use
assets |
|
91,087 |
|
|
97,649 |
|
Strategic investments |
|
137,795 |
|
|
18,668 |
|
Goodwill |
|
26,247 |
|
|
24,340 |
|
Other assets, noncurrent |
|
69,562 |
|
|
57,285 |
|
Total assets |
|
$ |
6,508,593 |
|
|
$ |
5,297,993 |
|
Liabilities and
stockholders’ equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
49,762 |
|
|
$ |
8,664 |
|
Accrued expenses and other current liabilities |
|
482,162 |
|
|
393,018 |
|
Deferred revenue, current |
|
1,154,449 |
|
|
858,284 |
|
Total current liabilities |
|
1,686,373 |
|
|
1,259,966 |
|
Deferred revenue,
noncurrent |
|
23,579 |
|
|
25,211 |
|
Operating lease liabilities,
noncurrent |
|
83,009 |
|
|
90,415 |
|
Other liabilities,
noncurrent |
|
57,884 |
|
|
61,634 |
|
Total liabilities |
|
1,850,845 |
|
|
1,437,226 |
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
Preferred stock |
|
— |
|
|
— |
|
Common stock |
|
296 |
|
|
292 |
|
Additional paid-in capital |
|
3,440,222 |
|
|
3,187,168 |
|
Accumulated other comprehensive income |
|
147 |
|
|
839 |
|
Retained earnings |
|
1,217,083 |
|
|
672,468 |
|
Total stockholders’
equity |
|
4,657,748 |
|
|
3,860,767 |
|
Total liabilities and
stockholders’ equity |
|
$ |
6,508,593 |
|
|
$ |
5,297,993 |
|
Note: The amount of unbilled accounts receivable included within
accounts receivable, net on the condensed consolidated balance
sheets was $35.4 million and $24.6 million as of July 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 July 31, |
|
Six Months Ended July 31, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenue |
|
$ |
1,021,495 |
|
|
|
$ |
663,520 |
|
|
|
$ |
1,977,732 |
|
|
|
$ |
991,687 |
|
|
Cost of revenue |
|
261,256 |
|
|
|
192,271 |
|
|
|
526,250 |
|
|
|
295,978 |
|
|
Gross profit |
|
760,239 |
|
|
|
471,249 |
|
|
|
1,451,482 |
|
|
|
695,709 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
82,311 |
|
|
|
42,734 |
|
|
|
147,486 |
|
|
|
69,123 |
|
|
Sales and marketing |
|
271,179 |
|
|
|
159,173 |
|
|
|
516,846 |
|
|
|
280,729 |
|
|
General and administrative |
|
112,146 |
|
|
|
81,238 |
|
|
|
266,235 |
|
|
|
134,368 |
|
|
Total operating expenses |
|
465,636 |
|
|
|
283,145 |
|
|
|
930,567 |
|
|
|
484,220 |
|
|
Income from operations |
|
294,603 |
|
|
|
188,104 |
|
|
|
520,915 |
|
|
|
211,489 |
|
|
Gains on strategic
investments |
|
32,076 |
|
|
|
— |
|
|
|
32,076 |
|
|
|
2,538 |
|
|
Interest income and other,
net |
|
(2,795 |
) |
|
|
2,081 |
|
|
|
(176 |
) |
|
|
5,333 |
|
|
Income before provision for
income taxes |
|
323,884 |
|
|
|
190,185 |
|
|
|
552,815 |
|
|
|
219,360 |
|
|
Provision for income
taxes |
|
6,800 |
|
|
|
4,196 |
|
|
|
8,200 |
|
|
|
6,296 |
|
|
Net income |
|
317,084 |
|
|
|
185,989 |
|
|
|
544,615 |
|
|
|
213,064 |
|
|
Undistributed earnings
attributable to participating securities |
|
(154 |
) |
|
|
(247 |
) |
|
|
(309 |
) |
|
|
(305 |
) |
|
Net income attributable to
common stockholders |
|
$ |
316,930 |
|
|
|
$ |
185,742 |
|
|
|
$ |
544,306 |
|
|
|
$ |
212,759 |
|
|
|
|
|
|
|
|
|
|
|
Net income per share
attributable to common stockholders: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.07 |
|
|
|
$ |
0.66 |
|
|
|
$ |
1.85 |
|
|
|
$ |
0.76 |
|
|
Diluted |
|
$ |
1.04 |
|
|
|
$ |
0.63 |
|
|
|
$ |
1.78 |
|
|
|
$ |
0.72 |
|
|
Weighted-average shares used
in computing net income per share attributable to common
stockholders: |
|
|
|
|
|
|
|
|
Basic |
|
295,712,675 |
|
|
|
282,850,805 |
|
|
|
294,769,619 |
|
|
|
281,394,901 |
|
|
Diluted |
|
305,861,051 |
|
|
|
297,162,309 |
|
|
|
305,652,628 |
|
|
|
296,408,229 |
|
|
Zoom Video Communications,
Inc.Condensed Consolidated Statements of Cash
Flows(Unaudited, in thousands)
|
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
317,084 |
|
|
|
$ |
185,989 |
|
|
|
$ |
544,615 |
|
|
|
$ |
213,064 |
|
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
102,142 |
|
|
|
56,855 |
|
|
|
201,111 |
|
|
|
85,632 |
|
|
Amortization of deferred contract acquisition costs |
|
41,626 |
|
|
|
24,494 |
|
|
|
79,392 |
|
|
|
40,781 |
|
|
Gains on strategic investments |
|
(32,076 |
) |
|
|
— |
|
|
|
(32,076 |
) |
|
|
(2,538 |
) |
|
Charitable donation of common stock |
|
— |
|
|
|
22,312 |
|
|
|
— |
|
|
|
23,312 |
|
|
Provision for accounts receivable allowances |
|
10,537 |
|
|
|
11,091 |
|
|
|
14,592 |
|
|
|
14,959 |
|
|
Depreciation and amortization |
|
12,028 |
|
|
|
6,475 |
|
|
|
22,691 |
|
|
|
11,814 |
|
|
Non-cash operating lease cost |
|
4,359 |
|
|
|
2,349 |
|
|
|
8,633 |
|
|
|
4,597 |
|
|
Amortization on marketable securities |
|
7,041 |
|
|
|
947 |
|
|
|
12,637 |
|
|
|
1,190 |
|
|
Other |
|
(6 |
) |
|
|
(36 |
) |
|
|
264 |
|
|
|
838 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
(41,594 |
) |
|
|
(54,425 |
) |
|
|
(117,259 |
) |
|
|
(196,926 |
) |
|
Prepaid expenses and other assets |
|
(27,395 |
) |
|
|
(4,649 |
) |
|
|
(57,370 |
) |
|
|
(53,729 |
) |
|
Deferred contract acquisition costs |
|
(54,784 |
) |
|
|
(88,936 |
) |
|
|
(102,597 |
) |
|
|
(213,790 |
) |
|
Accounts payable |
|
42,368 |
|
|
|
9,115 |
|
|
|
43,960 |
|
|
|
10,871 |
|
|
Accrued expenses and other liabilities |
|
5,153 |
|
|
|
34,744 |
|
|
|
93,809 |
|
|
|
202,066 |
|
|
Deferred revenue |
|
85,740 |
|
|
|
196,287 |
|
|
|
296,636 |
|
|
|
519,149 |
|
|
Operating lease liabilities, net |
|
(4,211 |
) |
|
|
(1,266 |
) |
|
|
(7,724 |
) |
|
|
(979 |
) |
|
Net cash provided by operating activities |
|
468,012 |
|
|
|
401,346 |
|
|
|
1,001,314 |
|
|
|
660,311 |
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
Purchases of marketable securities |
|
(669,136 |
) |
|
|
(277,336 |
) |
|
|
(2,094,587 |
) |
|
|
(484,882 |
) |
|
Maturities of marketable securities |
|
500,859 |
|
|
|
150,324 |
|
|
|
791,906 |
|
|
|
287,338 |
|
|
Sales of marketable securities |
|
119,569 |
|
|
|
10,284 |
|
|
|
119,569 |
|
|
|
36,897 |
|
|
Purchases of property and equipment |
|
(12,975 |
) |
|
|
(27,981 |
) |
|
|
(92,049 |
) |
|
|
(35,253 |
) |
|
Purchases of strategic investments |
|
(80,400 |
) |
|
|
— |
|
|
|
(86,900 |
) |
|
|
(13,000 |
) |
|
Cash paid for acquisition, net of cash acquired |
|
(2,121 |
) |
|
|
(26,486 |
) |
|
|
(2,121 |
) |
|
|
(26,486 |
) |
|
Purchase of intangible assets |
|
— |
|
|
|
(1,332 |
) |
|
|
— |
|
|
|
(1,494 |
) |
|
Other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,319 |
|
|
Net cash used in investing activities |
|
(144,204 |
) |
|
|
(172,527 |
) |
|
|
(1,364,182 |
) |
|
|
(235,561 |
) |
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock for employee stock purchase
plan |
|
37,846 |
|
|
|
20,760 |
|
|
|
37,846 |
|
|
|
20,760 |
|
|
Proceeds from employee equity transactions to be remitted to
employees and tax authorities, net |
|
28,884 |
|
|
|
15,925 |
|
|
|
18,900 |
|
|
|
234,465 |
|
|
Proceeds from exercise of stock options |
|
4,653 |
|
|
|
7,831 |
|
|
|
8,021 |
|
|
|
17,417 |
|
|
Other |
|
— |
|
|
|
— |
|
|
|
337 |
|
|
|
— |
|
|
Net cash provided by financing activities |
|
71,383 |
|
|
|
44,516 |
|
|
|
65,104 |
|
|
|
272,642 |
|
|
Net increase (decrease) in
cash, cash equivalents, and restricted cash |
|
395,191 |
|
|
|
273,335 |
|
|
|
(297,764 |
) |
|
|
697,392 |
|
|
Cash, cash equivalents, and
restricted cash – beginning of period |
|
1,600,161 |
|
|
|
758,139 |
|
|
|
2,293,116 |
|
|
|
334,082 |
|
|
Cash, cash equivalents, and
restricted cash – end of period |
|
$ |
1,995,352 |
|
|
|
$ |
1,031,474 |
|
|
|
$ |
1,995,352 |
|
|
|
$ |
1,031,474 |
|
|
Zoom Video Communications,
Inc.Reconciliation of GAAP to Non-GAAP
Measures(Unaudited, in thousands, except share and
per share amounts)
|
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
GAAP income from operations |
|
$ |
294,603 |
|
|
|
$ |
188,104 |
|
|
|
$ |
520,915 |
|
|
|
$ |
211,489 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Stock-based compensation expense and related payroll taxes |
|
116,742 |
|
|
|
61,602 |
|
|
|
221,117 |
|
|
|
91,848 |
|
|
Litigation settlements, net |
|
— |
|
|
|
— |
|
|
|
66,916 |
|
|
|
— |
|
|
Acquisition-related expenses |
|
13,320 |
|
|
|
4,942 |
|
|
|
16,604 |
|
|
|
4,942 |
|
|
Charitable donation of common stock |
|
— |
|
|
|
22,312 |
|
|
|
— |
|
|
|
23,312 |
|
|
Non-GAAP income from
operations |
|
$ |
424,665 |
|
|
|
$ |
276,960 |
|
|
|
$ |
825,552 |
|
|
|
$ |
331,591 |
|
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable
to common stockholders |
|
$ |
316,930 |
|
|
|
$ |
185,742 |
|
|
|
$ |
544,306 |
|
|
|
$ |
212,759 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Stock-based compensation expense and related payroll taxes |
|
116,742 |
|
|
|
61,602 |
|
|
|
221,117 |
|
|
|
91,848 |
|
|
Litigation settlements, net |
|
— |
|
|
|
— |
|
|
|
66,916 |
|
|
|
— |
|
|
Gains on strategic investments |
|
(32,076 |
) |
|
|
— |
|
|
|
(32,076 |
) |
|
|
— |
|
|
Acquisition-related expenses |
|
13,320 |
|
|
|
4,942 |
|
|
|
16,604 |
|
|
|
4,942 |
|
|
Charitable donation of common stock |
|
— |
|
|
|
22,312 |
|
|
|
— |
|
|
|
23,312 |
|
|
Undistributed earnings attributable to participating
securities |
|
154 |
|
|
|
247 |
|
|
|
309 |
|
|
|
305 |
|
|
Non-GAAP net income |
|
$ |
415,070 |
|
|
|
$ |
274,845 |
|
|
|
$ |
817,176 |
|
|
|
$ |
333,166 |
|
|
|
|
|
|
|
|
|
|
|
Net income per share - basic
and diluted: |
|
|
|
|
|
|
|
|
GAAP net income per share - basic |
|
$ |
1.07 |
|
|
|
$ |
0.66 |
|
|
|
$ |
1.85 |
|
|
|
$ |
0.76 |
|
|
Non-GAAP net income per share - basic |
|
$ |
1.40 |
|
|
|
$ |
0.97 |
|
|
|
$ |
2.77 |
|
|
|
$ |
1.18 |
|
|
GAAP net income per share - diluted |
|
$ |
1.04 |
|
|
|
$ |
0.63 |
|
|
|
$ |
1.78 |
|
|
|
$ |
0.72 |
|
|
Non-GAAP net income per share - diluted |
|
$ |
1.36 |
|
|
|
$ |
0.92 |
|
|
|
$ |
2.67 |
|
|
|
$ |
1.12 |
|
|
|
|
|
|
|
|
|
|
|
GAAP and non-GAAP
weighted-average shares used to compute net income per share -
basic |
|
295,712,675 |
|
|
|
282,850,805 |
|
|
|
294,769,619 |
|
|
|
281,394,901 |
|
|
GAAP and non-GAAP
weighted-average shares used to compute net income per share -
diluted |
|
305,861,051 |
|
|
|
297,162,309 |
|
|
|
305,652,628 |
|
|
|
296,408,229 |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating
activities |
|
$ |
468,012 |
|
|
|
$ |
401,346 |
|
|
|
$ |
1,001,314 |
|
|
|
$ |
660,311 |
|
|
Less: |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
(12,975 |
) |
|
|
(27,981 |
) |
|
|
(92,049 |
) |
|
|
(35,253 |
) |
|
Free cash flow (non-GAAP) |
|
$ |
455,037 |
|
|
|
$ |
373,365 |
|
|
|
$ |
909,265 |
|
|
|
$ |
625,058 |
|
|
Net cash used in investing
activities |
|
$ |
(144,204 |
) |
|
|
$ |
(172,527 |
) |
|
|
$ |
(1,364,182 |
) |
|
|
$ |
(235,561 |
) |
|
Net cash provided by financing
activities |
|
$ |
71,383 |
|
|
|
$ |
44,516 |
|
|
|
$ |
65,104 |
|
|
|
$ |
272,642 |
|
|
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