$ZM (+0.91%) | Zoom Communications Q3 Earnings Highlights

🔹 Non-GAAP EPS: $1.38 (Est. $1.31) 🟢

🔹 Total Revenue: $1.18B (Est. $1.16B) 🟢; UP +3.6% YoY

Q4 Guidance:

🔹 Revenue: $1.175B-$1.18B (Est. $1.17B) 🟡

🔹 Non-GAAP EPS: $1.29-$1.30 (Est. $1.28) 🟢

FY25 Guidance:

🔹 Revenue: $4.656B-$4.661B (Est. $4.66B) 🟡; Growth of +3.7% YoY

🔹 Non-GAAP EPS: $5.41-$5.43 (Est. $5.41) 🟡

🔹 Free Cash Flow: $1.58B-$1.62B

Other Key Q3 Metrics:

🔹 Enterprise Revenue: $698.9M; UP +5.8% YoY

🔹 Online Revenue: $478.7M; Flat YoY

🔹 Non-GAAP Operating Margin: 38.9%

🔹 Free Cash Flow: $457.7M; UP +1.0% YoY

🔹 Operating Cash Flow: $483.2M; DOWN -2.0% YoY

🔹 Gross Profit: $893.7M; UP +3.2% YoY

Customer Metrics

🔹 Customers Contributing >$100K in TTM Revenue: 3,995; UP +7.1% YoY

🔹 Enterprise Customers: 192,400

🔹 Trailing 12-Month Net Dollar Expansion Rate for Enterprise Customers: 98%

🔹 Online Monthly Average Churn: 2.7%; DOWN 30 bps YoY

🔹 Percentage of Online Monthly Recurring Revenue from Customers with Continual Service (16+ months): 74.1%; UP 90 bps YoY

Operational Highlights

🔸 Corporate name changed to Zoom Communications to reflect its broader vision.

🔸 Announced AI Companion 2.0 and paid AI add-ons, including industry-specific AI customization.

🔸 Secured a 20,000-seat Zoom Contact Center deal in EMEA.

🔸 Workvivo signed its largest deal with a Fortune 10 company.

🔸 Expanded stock repurchase authorization by $1.2B, bringing the total authorization to $2.0B.

CEO Commentary

🔸 Eric S. Yuan, Founder and CEO:

"In Q3, we were pleased to see revenue and enterprise revenue growth improve to approximately 4% and 6% YoY, respectively, and online monthly average churn reach an all-time low of 2.7%. Our investments in AI and integrated platforms are driving strong enterprise adoption and expansion."

Stock Repurchase Program

🔹 Repurchased 4.4M shares of common stock in Q3.

🔹 Authorization increased by $1.2B, bringing the total to $2.0B available for repurchase. 👀