Zoom Communications, Inc.

Previous wording

Zoom Workplace with AI Companion is an AI-first open work platform for human connection. Our platform is designed to enable seamless communication and collaboration through a suite of products that includes Zoom Meetings, Zoom Phone, Zoom Team Chat, Zoom Docs, and more, all with AI at its core to improve productivity, collaboration, and business outcomes.

Current wording

Zoom Workplace with AI Companion is an AI-first open work platform for human connection. Our platform is designed to enable seamless communication and collaboration through a suite of products that includes Zoom Workplace (including Zoom Meetings and Zoom Phone), Zoom Business Services (including Zoom Contact Center), Employee Experience (including Workvivo), and more, all with AI at its core to improve productivity, collaboration, and business outcomes.

Previous wording

We strive to simplify the workday with tools that drive meaningful team collaboration and customer engagement. Zoom Workplace, our AI-first open work platform, supports businesses by providing a secure, scalable solution for communication and collaboration. Together with Zoom Business Services, which include Zoom Contact Center, Zoom Revenue Accelerator, and Zoom Events that empower sales, marketing, and customer experience teams, Zoom is helping businesses foster stronger customer and employee relationships.

Current wording

We strive to simplify the workday with tools that drive meaningful team collaboration and customer engagement. Zoom Workplace supports businesses by providing a secure, scalable solution for communication and collaboration. Together with Zoom Business Services, which include Zoom Contact Center, Zoom Revenue Accelerator, and Zoom Events that empower sales, marketing, and customer experience teams, Zoom is helping businesses foster stronger customer and employee relationships.

Previous wording

AI is core to Zoom’s product innovation. Over the past year, Zoom continued to invest in AI, expanding its agentic AI skills, agents, and models, and focused on three key areas: supporting individual productivity, powering better collaboration, and helping customer-facing teams get more done, do better work, and strengthen relationships with AI Companion. Our federated approach to AI dynamically leverages multiple AI Large Language Models (“LLMs”) (including those from OpenAI, Anthropic, and Meta), as well as Small Language Models (“SLMs”), making AI more accessible and affordable so that more people can incorporate them in their day-to-day workflows. In line with our commitment to responsible AI, Zoom does not use customer audio, video, chat, screen sharing, attachments, or other communications-like customer content (such as poll results, whiteboard, and reactions) to train Zoom’s or its third-party AI models.

Current wording

AI is core to Zoom’s product innovation. Over the past year, Zoom continued to invest in AI, expanding its agentic AI skills, agents, and models, and focused on three key areas: supporting individual productivity, powering better collaboration, and helping customer-facing teams get more done, do better work, and strengthen relationships with AI Companion. Our federated approach to AI dynamically leverages multiple Large Language Models (“LLMs”) (including those from OpenAI,

Previous wording

Zoom’s platform prioritizes security and privacy, with 31 co-located data centers globally and robust encryption options. We are committed to delivering high-quality, real-time video, even in low-bandwidth conditions, while safeguarding our customers' data.

Current wording

Zoom’s platform prioritizes security and privacy, with 30 co-located data centers globally and robust encryption options. We are committed to delivering high-quality, real-time video, even in low-bandwidth conditions, while safeguarding our customers' data.

Previous wording

Our revenue was $1,174.7 million and $1,141.2 million for the three months ended April 30, 2025 and 2024, respectively, representing period-over-period growth of 2.9%. We had net income of $254.6 million and $216.3 million for the three months ended April 30, 2025 and 2024, respectively. Net cash provided by operating activities was $489.3 million and $588.2 million for the three months ended April 30, 2025 and 2024, respectively.

Current wording

Our revenue was $1,217.2 million and $1,162.5 million for the three months ended July 31, 2025 and 2024, respectively, representing period-over-period growth of 4.7%. We had net income of $358.6 million and $219.0 million for the three months ended July 31, 2025 and 2024, respectively. Our revenue was $2,391.9 million and $2,303.8 million for the six months ended July 31, 2025 and 2024, respectively, representing period-over-period growth of 3.8%. We had net income of $613.2 million and $435.3 million for the six months ended July 31, 2025 and 2024, respectively. Net cash provided by operating activities was $1,005.2 million and $1,037.5 million for the six months ended July 31, 2025 and 2024, respectively.

Previous wording

The macroeconomic environment, including geopolitical conflicts, tariffs and escalating trade tensions, inflationary pressures, interest rate fluctuations, and the global market and foreign currency exchange rate volatility, continues to create uncertainty in demand for subscriptions to our open work platform. These factors, along with responses by central banks and government policies, have placed pressure on consumer and business behavior, leading to elongated sales cycles and increased scrutiny of IT budgets among existing and potential customers. For the three months ended April 30, 2025, compared to the three months ended April 30, 2024, we experienced continued growth in total revenue and revenue from Enterprise customers. However, several factors, in addition to the macroeconomic environment, have impacted and may continue to impact our growth rate, such as higher market penetration, increased competition, and the maturation of our business, among others.

Current wording

The macroeconomic environment, including geopolitical conflicts, tariffs and escalating trade tensions, inflationary pressures, interest rate fluctuations, and the global market and foreign currency exchange rate volatility, continues to create uncertainty in demand for subscriptions to our open work platform. These factors, along with responses by central banks and government policies, have placed pressure on consumer and business behavior, leading to elongated sales cycles and increased scrutiny of IT budgets among existing and potential customers. For the three and six months ended July 31, 2025, compared to the three and six months ended July 31, 2024, we experienced continued growth in total revenue and revenue from Enterprise customers. However, several factors, in addition to the macroeconomic environment, have impacted and may continue to impact our growth rate, such as higher market penetration, increased competition, and the maturation of our business, among others.

Previous wording

We believe that there is a large opportunity for growth with many of our existing customers. Historically, customers have increased the size of their subscriptions as they have expanded their use of our platform across their operations. Over the past few years, macroeconomic headwinds have resulted in slower hiring and higher seat count downsells from our existing Enterprise customers in key markets that have impacted the rate of expansion and have caused our net dollar expansion rate for Enterprise customers to drop below one hundred percent. Despite the decline in our net dollar expansion metric, we believe there are still opportunities for future growth with our existing customers as we innovate our platform with additional product offerings and the use of AI. This expansion in the use of our platform also provides us with opportunities to market and sell additional products to our customers, such as Zoom Phone, Contact Center, and Workvivo. In order for us to address this opportunity and expand the use of our products with our existing customers, we will need to maintain the reliability of our platform and produce new features and functionality that are responsive to our customers’ requirements for enterprise-grade solutions.

Current wording

We believe that there is a large opportunity for growth with many of our existing customers. Historically, customers have increased the size of their subscriptions as they have expanded their use of our platform across their operations. Over the past few years, macroeconomic headwinds have resulted in slower hiring and higher seat count downsells from our existing Enterprise customers in key markets that have impacted the rate of expansion and have caused our net dollar expansion rate for Enterprise customers to drop below one hundred percent. Despite the decline in our net dollar expansion metric, we believe there are still opportunities for future growth with our existing customers as we innovate our platform with additional product offerings and the use of AI. This expansion in the use of our platform also provides us with opportunities to market and sell additional products to our customers, such as Zoom Phone, Zoom Contact Center, and Workvivo. To address this opportunity and expand the use of our products with our existing customers, we will need to maintain the reliability of our platform and produce new features and functionality that are responsive to our customers’ requirements for enterprise-grade solutions.

Previous wording

(“MRR”) and multiplying it by 12. MRR is defined as the recurring revenue run-rate of subscription agreements from all Enterprise customers for the last month of the period, including revenue from monthly subscribers who have not provided any indication that they intend to cancel their subscriptions. We then calculate the ARR from these Enterprise customers as of the current period end (“Current Period ARR”), which includes any upsells, contractions, and attrition. We divide the Current Period ARR by the Prior Period ARR to arrive at the net dollar expansion rate. For the trailing 12 months calculation, we take an average of the net dollar expansion rate over the trailing 12 months. Our net dollar expansion rate may fluctuate as a result of a number of factors, including the level of penetration within our customer base, expansion of products and features, and our ability to retain our Enterprise customers. Our trailing 12-month net dollar expansion rate for Enterprise customers as of April 30, 2025 and 2024 was 98% and 99%, respectively.

Current wording

We quantify our expansion across existing Enterprise customers through our net dollar expansion rate. We define Enterprise customers as distinct business units who have been engaged by either our direct sales team, resellers, or strategic partners. Revenue from Enterprise customers represented 60.0% and 58.7% of total revenue for the three months ended July 31, 2025 and 2024, respectively, and 60.0% and 58.5% of total revenue for the six months ended July 31, 2025 and 2024, respectively. Our net dollar expansion rate includes the increase in user adoption within our Enterprise customers, as our subscription revenue is primarily driven by the number of paid licenses within a customer and the purchase of additional products, and compares our subscription revenue from the same set of Enterprise customers across comparable periods. We calculate net dollar expansion rate as of a period end by starting with the annual recurring revenue (“ARR”) from all Enterprise customers as of 12 months prior (“Prior Period ARR”). We define ARR as the annualized revenue run rate of subscription agreements from all customers at a point in time. We calculate ARR by taking the monthly recurring revenue (“MRR”) and multiplying it by 12. MRR is defined as the recurring revenue run-rate of subscription agreements from all Enterprise customers for the last month of the period, including revenue from monthly subscribers who have not provided any indication that they intend to cancel their subscriptions. We then calculate the ARR from these Enterprise customers as of the current period end (“Current Period ARR”), which includes any upsells, contractions, and attrition. We divide the Current Period ARR by the Prior Period ARR to arrive at the net dollar expansion rate. For the trailing 12 months calculation, we take an average of the net dollar expansion rate over the trailing 12 months. Our net dollar expansion rate may fluctuate as a result of a number of factors, including the level of penetration within our customer base, expansion of products and features, and our ability to retain our Enterprise customers. Our trailing 12-month net dollar expansion rate for Enterprise customers was 98% as of both July 31, 2025 and 2024.

Previous wording

In addition to Enterprise customers, we also have a significant number of customers who subscribe to our services directly through our website (“Online customers” or “Online business”). Online customers represent a diverse customer base, ranging from individual consumers to small and medium-sized businesses. We continue to focus on acquisition and retention of our Online customer base through various strategies to improve the features and functionalities of our products and services. Revenue from Online customers represented 40.0% and 41.7% of total revenue for the three months ended April 30, 2025 and 2024, respectively. Our ability to retain these Online customers will have an impact on our future revenue. The online monthly average churn for our Online customers was 2.8% and 3.2% per month for the three months ended April 30, 2025 and 2024, respectively. One of the dynamics in the Online portion of the business is the MRR contribution from customers who have retained Zoom services for a certain portion of time as these customers tend to maintain their subscriptions and contribute meaningfully to the Online business. As of April 30, 2025 and 2024, the percentage of total Online MRR from Online customers with a continuous term of service of at least 16 months was 74.2% and 73.8%, respectively.

Current wording

In addition to Enterprise customers, we also have a significant number of customers who subscribe to our services directly through our website (“Online customers” or “Online business”). Online customers represent a diverse customer base, ranging from individual consumers to small and medium-sized businesses. We continue to focus on acquisition and retention of our Online customer base through various strategies to improve the features and functionalities of our products and services. Revenue from Online customers represented 40.0% and 41.3% of total revenue for the three months ended July 31, 2025 and 2024, respectively, and 40.0% and 41.5% of total revenue for the six months ended July 31, 2025 and 2024, respectively. Our ability to retain these Online customers will have an impact on our future revenue. The online monthly average churn for our Online customers was 2.9% per month for both the three months ended July 31, 2025 and 2024, and 2.9% and 3.1% per month for the six months ended July 31, 2025 and 2024, respectively. One of the dynamics in the Online portion of the business is the MRR contribution from customers who have retained Zoom services for a certain portion of time as these customers tend to maintain their subscriptions and contribute meaningfully to the Online business. As of July 31, 2025 and 2024, the percentage of total Online MRR from Online customers with a continuous term of service of at least 16 months was 74.9% and 74.4%, respectively.

Previous wording

Our platform addresses the communications and collaboration needs of users worldwide, and while our international revenue has stabilized in recent quarters, we continue to view international expansion as a meaningful long-term opportunity. Our revenue from the rest of the world (APAC and EMEA) represented 27.8% and 28.3% of our total revenue for the three months ended April 30, 2025 and 2024, respectively. We use strategic partners and resellers to sell in certain international markets where we have limited or no direct sales presence. While we believe global demand for our platform will continue to increase as international market awareness of Zoom grows, our ability to conduct our operations internationally will require considerable management attention and resources and is subject to the particular challenges of supporting a rapidly growing business in an environment of multiple languages, cultures, customs, legal and regulatory systems, alternative dispute systems, and commercial markets.

Current wording

Our platform addresses the communications and collaboration needs of users worldwide, and while our international revenue has stabilized in recent quarters, we continue to view international expansion as a meaningful long-term opportunity. Our revenue from the rest of the world (APAC and EMEA) represented 28.2% and 28.1% of our total revenue for the three months ended July 31, 2025 and 2024, respectively, and 28.0% and 28.2% of our total revenue for the six months ended July 31, 2025 and 2024, respectively. We use strategic partners and resellers to sell in certain international markets where we have limited or no direct sales presence. While we believe global demand for our platform will continue to increase as international market awareness of Zoom grows, our ability to conduct our operations internationally will require considerable management attention and resources and is subject to the particular challenges of supporting a rapidly growing business in an environment of multiple languages, cultures, customs, legal and regulatory systems, alternative dispute systems, and commercial markets.

Previous wording

We review the following key business metrics to measure our performance, identify trends, formulate financial projections, and make strategic decisions.

Current wording

We review the following key business metric to measure our performance, identify trends, formulate financial projections, and make strategic decisions.

Previous wording

We focus on growing the number of customers that contribute more than $100,000 of trailing 12 months revenue as it is a measure of our ability to scale with our customers and attract larger organizations to Zoom. Revenue from these customers represented 31.9% and 29.9% of total revenue for the three months ended April 30, 2025 and 2024, respectively. As of April 30, 2025 and 2024, we had 4,192 and 3,883 customers, respectively, that contributed more than $100,000 of trailing 12 months revenue, demonstrating our increasing penetration of larger organizations, including enterprises. These customers are a subset of Enterprise customers.

Current wording

We focus on growing the number of customers that contribute more than $100,000 of trailing 12 months revenue as it is a measure of our ability to scale with our customers and attract larger organizations to Zoom. Revenue from these customers represented 32.2% and 30.5% of total revenue for the three months ended July 31, 2025 and 2024, respectively, and 32.2% and 30.4% of total revenue for the six months ended July 31, 2025 and 2024, respectively. As of July 31, 2025 and 2024, we had 4,274 and 3,933 customers, respectively, that contributed more than $100,000 of trailing 12 months revenue, demonstrating our increasing penetration of larger organizations, including enterprises. These customers are a subset of Enterprise customers.

Previous wording

In addition to our results determined in accordance with GAAP, we believe that free cash flow (“FCF”) is a non-GAAP financial measure that is useful in evaluating our liquidity.

Current wording

In addition to our results determined in accordance with GAAP, free cash flow (“FCF”) is a non-GAAP financial measure that we believe is useful in evaluating our liquidity.

Previous wording

We define FCF as GAAP net cash provided by operating activities less purchases of property and equipment. We believe that FCF is a useful indicator of liquidity that provides information to management and investors about the amount of cash generated from our operations that, after investments in property and equipment, can be used for future growth. FCF is presented for supplemental informational purposes only and has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of other GAAP financial measures, such as net cash provided by operating activities. It is important to note that other companies, including companies in our industry, may not use this metric, may calculate this metric differently, or may use other financial measures to evaluate their liquidity, all of which could reduce the usefulness of this non-GAAP metric as a comparative measure.

Current wording

We define FCF as GAAP net cash provided by operating activities less purchases of property and equipment. We believe that FCF is a useful indicator of liquidity that provides information to management and investors about the amount of cash generated from our operations that, after investments in property and equipment, can be used for future growth or other corporate purposes. FCF is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of other GAAP financial measures, such as net cash provided by operating activities. It is important to note that other companies, including companies in our industry, may not use this metric, may calculate this metric differently, or may use other financial measures to evaluate their liquidity, all of which could reduce the usefulness of this non-GAAP metric as a comparative measure.

Previous wording

General and administrative expenses primarily consist of personnel-related expenses associated with our finance and legal organizations; professional fees for external legal, accounting, and other consulting services; expected credit losses; insurance; certain indirect taxes; litigation settlements; corporate security and regulatory expenses; and allocated overhead.

Current wording

General and administrative expenses primarily consist of personnel-related expenses associated with our finance, legal, and other organizations; professional fees for external legal, accounting, and other consulting services; expected credit losses; insurance; certain indirect taxes; litigation settlements; corporate security and regulatory expenses; and allocated overhead.

Previous wording

(Losses) gains on strategic investments, net consist primarily of remeasurement gains or losses on our equity investments.

Current wording

Gains on strategic investments, net consist primarily of remeasurement gains or losses on our equity investments.

Previous wording

Revenue for the three months ended April 30, 2025, increased by $33.5 million, or 2.9%, compared to the three months ended April 30, 2024. The increase was driven by a 5.9% increase in revenue from Enterprise customers, of which 33.7% and 66.3% were from existing and new customers, respectively, partially offset by a 1.2% decline in revenue from Online customers.

Current wording

Revenue for the three months ended July 31, 2025 increased by $54.7 million, or 4.7%, compared to the three months ended July 31, 2024. The increase was driven by 7.0% growth in revenue from Enterprise customers, of which 57.4% and 42.6% was from new and existing customers, respectively, and by a 1.4% increase in revenue from Online customers.

Previous wording

Gross margin increased to 76.3% for the three months ended April 30, 2025, from 76.1% for the three months ended April 30, 2024. The increase in gross margin was mainly due to the decrease in stock-based compensation.

Current wording

Gross margin grew to 77.6% for the three months ended July 31, 2025, from 75.5% for the three months ended July 31, 2024. The increase in gross margin was mainly due to a decrease in stock-based compensation and hosting costs.

Previous wording

Research and development expense for the three months ended April 30, 2025 decreased by $0.1 million, or 0.1%, compared to the three months ended April 30, 2024. The decrease was driven by a $9.6 million decrease in stock-based compensation largely offset by our continued investment in AI-innovation, including a$3.7 million increasein personnel-related expenses as a result of increased headcount, as well as costs from AI-related software and facilities used in development.

Current wording

Research and development expense for the three months ended July 31, 2025 decreased by $0.3 million, or 0.1%, compared to the three months ended July 31, 2024. A $11.1 million decrease in stock-based compensation was largely offset by continued investment in AI-innovation, including a$6.3 million increasein personnel-related expenses as a result of higher headcount.

Previous wording

General and administrative expense for the three months ended April 30, 2025, decreased by $9.0 million, or 8.1%, compared to the three months ended April 30, 2024. The decrease was primarily due a $7.3 million decrease in personnel-related expenses, including a $5.3 million decrease in stock-based compe nsation and a $2.0 million decrease in salaries, payroll taxes and benefits.

Current wording

General and administrative expense for the three months ended July 31, 2025 decreased by $32.7 million, or 29.8%, compared to the three months ended July 31, 2024. The favorable variance was primarily driven by thereversal of a previous accrual of $18.0 million related to an SEC investigation and a $16.6 million decrease in personnel-related expenses, including a $9.9 million decrease in stock-based compe nsation.

Previous wording

Losses on strategic investments, net for the three months ended April 30, 2025 were primarily driven by changes in the fair value of our publicly held securities, while gains on strategic investments, net, for the three months ended April 30, 2024 were primarily driven by changes in the valuations of our privately held securities.

Current wording

Gains on strategic investments, net for the three months ended July 31, 2025 and July 31, 2024 were primarily driven by changes in the fair value of our publicly and privately held securities.

Previous wording

Provision for income taxes for the three months ended April 30, 2025 decreased by $14.5 million, or 19.2%, compared to the three months ended April 30, 2024. The year-over-year change was primarily due to the decrease in tax shortfalls on stock-based compensation.

Current wording

Provision for income taxes for the three months ended July 31, 2025 increased by $15.7 million, or 21.2%, compared to the three months ended July 31, 2024. The year-over-year change was primarily due to an increase in income before taxes partially offset by a decrease in tax shortfalls and increase in tax benefits related to stock-based compensation.

Previous wording

Sales and marketing expense for the three months ended April 30, 2025, decreased by $1.0 million, or 0.3%, compared to the three months ended April 30, 2024. The decrease was primarily due to a $8.8 million decrease in stock-based compensation offset by a$4.0 million increase in salaries, payroll taxes and benefits, along with costs to support our customer engagement and growth initiatives.

Current wording

Sales and marketing expense for the six months ended July 31, 2025 decreased by $20.8 million, or 2.9%, compared to the six months ended July 31, 2024. The decrease in sales and marketing expense was primarily due to lower personnel-related expenses, including a $29.9 million decrease in stock-based compensation, partially offset by costs to support our customer engagement and growth initiatives.

Previous wording

Other income, net for the three months ended April 30, 2025, increased by $16.2 million, or 22.6%, compared to the three months ended April 30, 2024. The increase was due to $12.5 million increase from changes in foreign currency exchange rates anda $3.8 million increase in investment yield from cash and marketable securities.

Current wording

Other income, net for the six months ended July 31, 2025 increased by $10.2 million, or 6.4%, compared to the six months ended July 31, 2024. The increase was primarily due to a $13.0 million increase from changes in foreign currency exchange rates, partially offset by a$3.3 million decrease in investment yields from cash and marketable securities.

Previous wording

Net cash used in investing activities of $107.8 million for the three months ended April 30, 2024 was due to net purchases of marketable securities of $91.0 million, purchases of property and equipment of $18.5 million, and purchases of strategic investments of $3.0 million, partially offset by proceeds from strategic investments of $4.7 million.

Current wording

Net cash used in investing activities of $185.8 million for the six months ended July 31, 2025 was driven by net purchases of marketable securities of $126.4 million, purchases of property and equipment of $33.9 million, and purchases of strategic investments of $27.5 million.

Previous wording

Net cash used in investing activities of $125.1 million for the three months ended April 30, 2025 was due to net purchases of marketable securities of $99.2 million and purchases of property and equipment of $25.9 million.

Current wording

Net cash used in investing activities of $648.7 million for the six months ended July 31, 2024 was primarily due to net purchases of marketable securities of $537.1 million, purchases of property and equipment of $102.7 million, and purchases of strategic investments of $13.5 million.

Previous wording

Net cash used in financing activities of $490.5 million for the three months ended April 30, 2025 was primarily due to cash paid for repurchases of common stock of $418.0 million and taxes paid related to net share settlement of equity awards of

Current wording

Net cash used in financing activities of $985.4 million for the six months ended July 31, 2025 was primarily due to cash paid for repurchases of common stock, including excise taxes, of $883.3 million and taxes paid related to net share settlement of equity awards of $137.5 million, partially offset by proceeds from the issuance of common stock under our ESPP of $36.1 million.

Previous wording

Net cash used in financing activities of $142.5 million for the three months ended April 30, 2024 was primarily due to cash paid for repurchases of common stock of $150.0 million, partially offset by proceeds from employee equity transactions to be remitted to employees and tax authorities, net, of $6.6 million.

Current wording

Net cash used in financing activities of $398.7 million for the six months ended July 31, 2024 was primarily due to cash paid for repurchases of common stock of $437.7 million, partially offset by proceeds from the issuance of common stock under our ESPP of $34.3 million.

Previous wording

During the three months ended April 30, 2025, we repurchased and subsequently retired 5,561,920 shares of our Class A common stock for an aggregate amount of $418.0 million.

Current wording

During the three and six months ended July 31, 2025, we repurchased and subsequently retired 5,950,898 and 11,512,818 shares of our Class A common stock, respectively, for an aggregate amount of $463.4 million and $881.4 million, respectively.