Zoom Communications, Inc. SEC 10-Q Report

Zoom Communications, Inc., a leading provider of video communication solutions, has released its Form 10-Q report for the first quarter of 2025. The report highlights the company's financial performance and operational achievements, showcasing steady growth and strategic advancements in its product offerings and market presence.

Financial Highlights

• Revenue: $1,174.7 million, representing a period-over-period growth of 2.9% driven by a 5.9% increase in revenue from Enterprise customers.
• Gross Profit: $896.3 million, with a gross margin of 76.3%, slightly up from 76.1% in the prior year, primarily due to a decrease in stock-based compensation.
• Income from Operations: $241.6 million, reflecting an increase in operational efficiency.
• Net Income: $254.6 million, up from $216.3 million in the prior year, indicating improved profitability.
• Net Income Per Share (Basic): $0.84, showing an increase from $0.70 in the prior year.
• Net Income Per Share (Diluted): $0.81, compared to $0.69 in the prior year, reflecting enhanced earnings performance.

Business Highlights

• Revenue Segments: Revenue from Enterprise customers represented 60.0% of total revenue for the three months ended April 30, 2025, showing a 5.9% increase compared to the same period in 2024. This growth was driven by both existing and new customers, with 33.7% of the increase from existing customers and 66.3% from new customers.
• Geographical Performance: The Americas region contributed 72.2% of total revenue, while the Asia Pacific region accounted for 12.1%, and Europe, Middle East, and Africa contributed 15.7% for the three months ended April 30, 2025. The revenue distribution remained relatively stable compared to the previous year.
• New Product Launches: Recent product innovations include Zoom AI Companion, Zoom Docs, Zoom Tasks, and enhancements for Zoom Phone, Meetings, Zoom Rooms, Sessions, Webinars, Events, Workvivo, and Contact Center. These innovations focus on expanding AI capabilities and improving user experience.
• Future Outlook: The company is focused on expanding its AI capabilities and enhancing its platform to support individual productivity and collaboration. Zoom plans to continue investing in AI and expanding its product offerings to drive growth and improve customer engagement.
• International Opportunity: Despite stable international revenue in recent quarters, Zoom views international expansion as a significant long-term opportunity. The company continues to leverage strategic partners and resellers to penetrate markets where it has limited direct sales presence.
• Customer Retention and Expansion: The company is focused on retaining Online customers and expanding within existing Enterprise customers. The net dollar expansion rate for Enterprise customers was 98% as of April 30, 2025, indicating opportunities for growth despite macroeconomic headwinds.
• Key Business Metrics: As of April 30, 2025, Zoom had 4,192 customers contributing more than $100,000 in trailing 12 months revenue, representing 31.9% of total revenue. This demonstrates increasing penetration of larger organizations.
• Innovation and Platform Expansion: Zoom continues to invest in enhancing its platform capabilities, including AI-driven features and functionalities, to support customer needs and drive platform adoption.

SEC Filing: Zoom Communications, Inc. [ ZM ] - 10-Q - May. 23, 2025