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 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.

Current wording

Our mission is to be 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 our AI capabilities driven by Zoom AI Companion, 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 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 AI-powered tools that drive meaningful team collaboration and customer engagement. Zoom Workplace supports businesses by providing a secure, scalable solution for communication and collaboration. In addition, Zoom is further helping businesses foster stronger customer and employee relationships through Zoom Business Services, which includes Zoom Contact Center, Zoom Revenue Accelerator, as well as Zoom Events, which empowers sales, marketing, and customer experience teams.

Previous wording

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 continues to invest in AI, expanding its agentic AI skills, agents, and models, focusing 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, Anthropic, and Meta), as well as Small Language Models (“SLMs”), making AI more accessible and affordable so that more people can incorporate it 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.

Previous wording

Revenue is driven by subscriptions to Zoom Workplace and Zoom Business Services. Our core offerings include Zoom Workplace Pro, Business, and Enterprise bundles, with vertical-specific plans for Education, Healthcare, and Government. We also offer Zoom Phone, with regional and global calling plans designed to meet diverse customer needs.

Current wording

Revenue is driven by subscriptions to Zoom Workplace and Zoom Business Services. Our core offerings include Zoom Workplace Pro, Business, and Enterprise bundles, with vertical-specific plans for Education, Healthcare, and Government. We also offer Zoom Phone, with regional and global calling plans, and Zoom Contact Center, providing advanced customer experience solutions designed to meet diverse customer needs.

Previous 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.

Current wording

Our revenue was $1,229.8 million and $1,177.5 million for the three months ended October 31, 2025 and 2024, respectively, representing period-over-period growth of 4.4%. We had net income of $612.9 million and $207.1 million for the three months ended October 31, 2025 and 2024, respectively. Our revenue was $3,621.8 million and $3,481.3 million for the nine months ended October 31, 2025 and 2024, respectively, representing period-over-period growth of 4.0%. We had net income of $1,226.1 million and $642.4 million for the nine months ended October 31, 2025 and 2024, respectively. Net cash provided by operating activities was $1,634.5 million and $1,520.7 million for the nine months ended October 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 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.

Current wording

The macroeconomic environment, including geopolitical conflicts, inflationary pressures, government shutdowns, tariffs escalating trade tensions, 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 shifts in customers’ internal priorities, such as budget reductions or workforce restructuring, have led to elongated sales cycles, increased caution in enterprise spending, and may further impact customer upsell or downsell activity.

Previous wording

In recent months, intensifying trade tensions and global market volatility have impacted the macroeconomic environment, and we continue to monitor the potential effects of these circumstances as well as the overall global economy and geopolitical landscape on our business and financial results. The implications of macroeconomic conditions on our business, results of operations, and overall financial position, particularly in the long term, remain uncertain.

Current wording

In recent months, intensifying trade tensions and global market volatility as well as ongoing foreign currency fluctuations have impacted the macroeconomic environment. We continue to monitor the potential effects of these circumstances as well as the overall global economy and geopolitical landscape on our business and financial results. The implications of macroeconomic conditions on our business, results of operations, and overall financial position, particularly in the long term, remain uncertain.

Previous wording

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted, introducing several significant corporate income tax provisions, including the option to immediately deduct domestic research and development expenses or continue to capitalize and amortize such expenses for tax years beginning after December 31, 2024, the permanent extension of 100% bonus depreciation for qualified property placed in service after January 19, 2025, and modifications to international tax rules such as future changes to the calculation of Global Low-Taxed Income (GILTI) and the Foreign-Derived Intangible Income (FDII) deduction. The impacts of OBBBA on our financial statements for the three months ended July 31, 2025 were not material; however, as our business operations or financial results change, or as additional regulations and administrative guidance are issued, we will evaluate any further impacts to our consolidated financial statements.

Current wording

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted, introducing several significant corporate income tax provisions, including the option to immediately deduct domestic research and development expenses or continue to capitalize and amortize such expenses for tax years beginning after December 31, 2024, the permanent extension of 100% bonus depreciation for qualified property placed in service after January 19, 2025, and modifications to international tax rules such as future changes to the calculation of Global Low-Taxed Income (GILTI) and the Foreign-Derived Intangible Income (FDII) deduction. The impacts of OBBBA on our financial statements for the three months and nine months ended October 31, 2025 were not material; however, as our business operations or financial results change, or as additional regulations and administrative guidance are issued, we will evaluate any further impacts to our consolidated financial statements.

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, 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.

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, which 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, 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

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.

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 60.3% and 59.4% of total revenue for the three months ended October 31, 2025 and 2024, respectively, and 60.1% and 58.8% of total revenue for the nine months ended October 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 October 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 41.3% 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.

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 39.7% and 40.6% of total revenue for the three months ended October 31, 2025 and 2024, respectively, and 39.9% and 41.2% of total revenue for the nine months ended October 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 2.7% per month for both the three months ended October 31, 2025 and 2024, and 2.8% and 3.0% per month for the nine months ended October 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

Previous wording

We continue to invest in enhancing the capabilities of Zoom Workplace and Zoom Business Services. This includes ongoing investments in AI, with a focus on expanding agentic AI skills, agents, and models. Recent product innovations and enhancements include Zoom AI Companion, Zoom Docs, Zoom Tasks and continued enhancements for Phone, Meetings, Zoom Rooms, Sessions, Webinars, Events, Workvivo, Contact Center, and more. We also deliver Zoom Phone calling plans in more than 45 countries and territories as of July 31, 2025.

Current wording

We continue to invest and enhance the capabilities of Zoom Workplace and Zoom Business Services. This includes ongoing investments in AI, with a focus on expanding agentic AI skills, agents, and models. Recent product innovations and enhancements include Zoom AI Companion, Zoom Docs, Zoom Tasks and continued enhancements for Phone, Meetings, Zoom Rooms, Sessions, Webinars, Events, Workvivo, Contact Center, and more. As of October 31, 2025, we also delivered Zoom Phone calling plans in more than 45 countries and territories.

Previous wording

We recently launched several products and enhancements, including new agentic AI offerings that drive productivity and collaboration, new app integrations for the Custom AI Companion add-on, a next-generation Zoom Virtual Agent that enhances customer support experiences, innovations in Zoom Spaces to improve collaboration, and updates to real-time media streams for better communication. The next-generation Zoom Virtual Agent is an AI-driven solution that uses agentic AI to autonomously resolve customer support issues across chat and voice channels. It features advanced reasoning, integrates with Zoom Contact Center and other leading platforms, and helps reduce escalations while improving efficiency and satisfaction.

Current wording

Earlier this year, we launched several products and enhancements, including new agentic AI offerings that drive productivity and collaboration, new app integrations for the Custom AI Companion add-on, a next-generation Zoom Virtual Agent that enhances customer support experiences, innovations in Zoom Spaces to improve collaboration, and updates to real-time media streams for better communication. The next-generation Zoom Virtual Agent is an AI-driven solution that uses agentic AI to autonomously resolve customer support issues across chat and voice channels. It features advanced reasoning, integrates with Zoom Contact Center and other leading platforms, and helps reduce escalations while improving efficiency and satisfaction.

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 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.

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 outside of the Americas (APAC and EMEA) represented 27.9% and 28.1% of our total revenue for the three months ended October 31, 2025 and 2024, respectively, and 28.0% and 28.2% of our total revenue for the nine months ended October 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 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.

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 32.4% and 30.8% of total revenue for the three months ended October 31, 2025 and 2024, respectively, and 32.5% and 30.7% of total revenue for the nine months ended October 31, 2025 and 2024, respectively. As of October 31, 2025 and 2024, we had 4,363 and 3,995 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

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.

Current wording

Revenue for the three months ended October 31, 2025 increased by $52.3 million, or 4.4%, compared to the three months ended October 31, 2024. The increase was driven by 6.1% growth in revenue from Enterprise customers, of which 67% and 33% was from new and existing customers, respectively, and by a 2.0% increase in revenue from Online customers.

Previous wording

Cost of revenue for the three months ended July 31, 2025 decreased by $11.9 million, or 4.2%, compared to the three months ended July 31, 2024. The decline was mainly due to a $7.1 million reduction in stock-based compensation as well as lower hosting costs. The reduction in SBC is due to changes in our equity program, while the decrease in hosting costs was due to cloud optimizations and operational efficiencies.

Current wording

Cost of revenue for the three months ended October 31, 2025 decreased by $12.1 million, or 4.3%, compared to the three months ended October 31, 2024. The decline was mainly due to a $7.3 million reduction in stock-based compensation as well as lower hosting costs. The reduction in stock-based compensation is due to changes in our equity program, while the decrease in hosting costs was due to cloud optimizations and operational efficiencies.

Previous 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.

Current wording

Gross margin grew to 77.9% for the three months ended October 31, 2025, from 75.9% for the three months ended October 31, 2024. The increase in gross margin was mainly due to the reasons described above.

Previous 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.

Current wording

Research and development expense for the three months ended October 31, 2025 decreased by $12.9 million, or 5.8%, compared to the three months ended October 31, 2024. The decrease was mainly driven by an $19.7 million decrease in stock-based compensation due to changes in our equity program partially offset by a$6.6 million increasein personnel-related expenses as a result of higher headcount as we invested in AI innovation.

Previous wording

Sales and marketing expense for the three months ended July 31, 2025 decreased by $19.8 million, or 5.5%, compared to the three months ended July 31, 2024. The decrease was primarily driven bylower stock-based compensation of$21.1 million.

Current wording

Sales and marketing expense for the three months ended October 31, 2025 decreased by $18.9 million, or 5.2%, compared to the three months ended October 31, 2024. The decrease was primarily driven bylower stock-based compensation of$19.3 million due to changes in our equity program.

Previous 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.

Current wording

General and administrative expense for the three months ended October 31, 2025 decreased by $31.4 million, or 24.9%, compared to the three months ended October 31, 2024. The favorable variance was primarily driven by the prior-year accrual of $18.0 million related to an SEC investigation and a $9.4 million decrease in stock-based compe nsation due to changes in our equity program.

Previous 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.

Current wording

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

Previous wording

Other income, net for the three months ended July 31, 2025 decreased by $6.0 million, or 6.9%, compared to the three months ended July 31, 2024. The decrease was primarily due to lower investment yields from cash and marketable securities.

Current wording

Other income, net for the three months ended October 31, 2025 decreased by $13.0 million, or 14.3%, compared to the three months ended October 31, 2024. The decrease was primarily due to lower interest income from cash and marketable securities resulting from the declining interest rate rate environment.

Previous 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.

Current wording

Provision for income taxes for the three months ended October 31, 2025 increased by $108.5 million, or 147.9%, compared to the three months ended October 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

Revenue for the six months ended July 31, 2025 increased by $88.2 million, or 3.8%, compared to the six months ended July 31, 2024. The increase in revenue was due to a 6.4% growth in revenue from Enterprise customers, of which 53.6% and 46.4% was from new and existing customers, respectively. Revenue from Online customers remained flat year over year.

Current wording

Revenue for the nine months ended October 31, 2025 increased by $140.5 million, or 4.0%, compared to the nine months ended October 31, 2024. The increase in revenue was due to a 6.3% growth in revenue from Enterprise customers, of which 47.0% and 53.0% was from new and existing customers, respectively. Revenue from Online customers remained relatively flat year over year.

Previous wording

Cost of revenue for the six months ended July 31, 2025 decreased by $6.8 million, or 1.2%, compared to the six months ended July 31, 2024. Thedecrease was primarily due toa lower personnel related expenses of$9.8 million, including an$11.2 million decline in stock-based compensation, due to changes in our equity program.

Current wording

Cost of revenue for the nine months ended October 31, 2025 decreased by $18.9 million, or 2.2%, compared to the nine months ended October 31, 2024. Thedecrease was primarily due toa$18.5 million reduction in stock-based compensationdue to changes in our equity program.

Previous wording

Gross margin increased to 76.9% for the six months ended July 31, 2025 from 75.8% for the six months ended July 31, 2024, mainly due toa decrease in stock-based compensation.

Current wording

Gross margin increased to 77.3% for the nine months ended October 31, 2025 from 75.8% for the nine months ended October 31, 2024, mainly due toa decrease in stock-based compensation.

Previous wording

Research and development expense for the six months ended July 31, 2025 decreased by $0.5 million, or 0.1%, compared to the six months ended July 31, 2024. A$20.8 million decrease in stock-based compensation was largely offset by continued investments in AI-innovation, including a$10.0 million increase in personnel related expenses from higher headcount, along with additional costs associated with AI-related software and facilities.

Current wording

Research and development expense for the nine months ended October 31, 2025 decreased by $13.3 million, or 2.1%, compared to the nine months ended October 31, 2024. The decrease was mainly driven by a $40.4 million decrease in stock-based compensation due to changes in our equity program, largely offset by continued investments in AI innovation, including a$18.9 million increase in personnel related expenses from higher headcount, along with additional costs associated with AI-related software and facilities.

Previous 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.

Current wording

Sales and marketing expense for the nine months ended October 31, 2025 decreased by $39.7 million, or 3.7%, compared to the nine months ended October 31, 2024. The decrease in sales and marketing expense was mainly driven by a

Previous wording

Gains on strategic investments, net for the six 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.

Current wording

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

Previous 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.

Current wording

Other income, net for the nine months ended October 31, 2025 decreased by $2.9 million, or 1.1%, compared to the nine months ended October 31, 2024. The decrease was primarily due to a $13.6 million decrease in interest income from cash and marketable securities resulting from the declining interest rate environment, largely offset by a$10.4 million increase from changes in foreign currency exchange rates.

Previous wording

Provision for income taxes for the six months ended July 31, 2025 increased by $1.2 million, or 0.8%, compared to the six months ended July 31, 2024. The year-over-year change was dueprimarily to an increase in income before taxes offset by a decrease in tax shortfalls and increase in tax benefits related to stock-based compensation.

Current wording

Provision for income taxes for the nine months ended October 31, 2025 increased by $109.7 million, or 49.2%, compared to the nine months ended October 31, 2024. The year-over-year change was dueprimarily to an increase in income before taxes offset by a decrease in tax shortfalls and increase in tax benefits related to stock-based compensation.

Previous wording

As of July 31, 2025, our principal sources of liquidity were cash, cash equivalents, and marketable securities of $7.8 billion, which were held for working capital purposes and for investment in growth opportunities. Our marketable securities generally consist of high-grade commercial paper, corporate bonds, agency bonds, corporate and other debt securities, U.S. government agency securities, and treasury bills.

Current wording

As of October 31, 2025, our principal sources of liquidity were cash, cash equivalents, and marketable securities of $7.9 billion, which were held for working capital purposes and for investment in growth opportunities. Our marketable securities generally consist of high-grade commercial paper, corporate bonds, agency bonds, corporate and other debt securities, U.S. government agency securities, and treasury bills.

Previous wording

We have financed our operations primarily through income from operations and sales of equity securities. Cash from operations could also be affected by various risks and uncertainties, including, but not limited to, macroeconomic factors, such as geopolitical conflicts, tariffs and trade tensions, inflationary pressures, interest rate fluctuations, and the fluctuations in foreign currency exchange rates. These factors and other risks detailed in the section titled “Risk Factors” could impact the timing of cash collections from our customers. However, based on our current business plan and revenue prospects, we believe our existing cash, cash equivalents, and marketable securities, together with net cash provided by operations, will be sufficient to meet our needs for at least the next 12 months and allow us to capitalize on growth opportunities. We believe we will meet longer-term expected future cash requirements and obligations through a combination of cash flows from operating activities and available cash balances. Our future capital requirements will depend on many factors, including our revenue growth rate, subscription renewal activity, billing frequency, the timing and extent of spending to support further sales and marketing and research and development efforts, as well as expenses associated with our international expansion, and the timing and extent of additional capital expenditures to invest in existing and new office spaces as well as data center infrastructure. We may, in the future, enter into arrangements to acquire or invest in complementary businesses, services, and technologies, including intellectual property rights. We may choose or be required to seek additional equity or debt financing. In the event that additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us or at all. If we are unable to raise additional capital when desired, our business, results of operations, and financial condition would be materially and adversely affected.

Current wording

We finance our operations primarily through income from operations. Cash from operations may also be affected by various risks and uncertainties, including, but not limited to, macroeconomic factors, such as geopolitical conflicts, tariffs and trade tensions, inflationary pressures, interest rate fluctuations, and the fluctuations in foreign currency exchange rates. These factors and other risks detailed in the section titled “Risk Factors” could impact the timing of cash collections from our customers. However, based on our current business plan and revenue prospects, we believe our existing cash, cash equivalents, and marketable securities, together with net cash provided by operations, will be sufficient to meet our needs for at least the next 12 months and allow us to capitalize on growth opportunities. We believe we will meet longer-term expected future cash requirements and obligations through a combination of cash flows from operating activities and available cash balances. Our future capital requirements will depend on many factors, including our revenue growth rate, subscription renewal activity, billing frequency, the timing and extent of spending to support further sales and marketing and research and development efforts, as well as expenses associated with our international expansion, and the timing and extent of additional capital expenditures to invest in existing and new office spaces as well as data center infrastructure. We may, in the future, enter into arrangements to acquire or invest in complementary businesses, services, and technologies, including intellectual property rights. We may choose or be required to seek additional equity or debt financing. In the event that additional financing is required from outside sources, we may not be able to enter into debt agreements on terms acceptable to us or at all. If we are unable to raise additional capital when desired, our business, results of operations, and financial condition would be materially and adversely affected.

Previous wording

There have been no material changes to our material cash requirements from known contractual and other obligations from those disclosed in our Management’s Discussion and Analysis of Financial Condition and Results of Operations, included in our Annual Report on Form 10-K for the year ended January 31, 2025, filed with the SEC on February 28, 2025.

Current wording

Except for the additional outstanding non-cancelable purchase obligations disclosed in Footnote 6, Commitments and Contingencies, included in Part I, Item 1 on this Form 10-Q, there have been no material changes to our material cash requirements from known contractual and other obligations from those disclosed in our Management’s Discussion and Analysis of Financial Condition and Results of Operations, included in our Annual Report on Form 10-K for the year ended January 31, 2025, filed with the SEC on February 28, 2025.

Previous 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.

Current wording

Net cash used in investing activities of $330.2 million for the nine months ended October 31, 2025 was primarily driven by net purchases of marketable securities of $257.2 million, purchases of property and equipment of $48.9 million, and purchases of strategic investments of $27.5 million.

Previous 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.

Current wording

Net cash used in investing activities of $1,101.1 million for the nine months ended October 31, 2024 was primarily due to net purchases of marketable securities of $964.3 million, purchases of property and equipment of $128.2 million, and purchases of strategic investments of $13.5 million.

Previous 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.

Current wording

Net cash used in financing activities of $1,451.4 million for the nine months ended October 31, 2025 was primarily due to cash paid for repurchases of common stock, including excise taxes, of $1,297.0 million and taxes paid related to net share settlement of equity awards of $192.3 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 $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.

Current wording

Net cash used in financing activities of $699.1 million for the nine months ended October 31, 2024 was primarily due to cash paid for repurchases of common stock of $739.3 million, partially offset by proceeds from the issuance of common stock under our ESPP of $34.3 million.

Previous wording

In February 2024, our Board of Directors authorized a stock repurchase program of up to $1.5 billion of our Class A common stock. In November 2024, our Board of Directors authorized the repurchase of an additional $1.2 billion of our outstanding Class A common stock. Repurchases of our Class A common stock may be effected, from time to time, either on the open market (including pre-set trading plans), in privately negotiated transactions, and other transactions in accordance with applicable securities laws.

Current wording

In February 2024, our Board of Directors authorized a stock repurchase program of up to $1.5 billion of our Class A common stock. In November 2024, our Board of Directors authorized the repurchase of an additional $1.2 billion of our outstanding Class A common stock. In November 2025, our Board of Directors authorized another $1.0 billion in repurchases of our outstanding Class A common stock. Repurchases of our Class A common stock may be effected, from time to time, either on the open market (including pre-set trading plans), in privately negotiated transactions, and other transactions in accordance with applicable securities laws.